MANAGERIAL CAPABILITIES AND COMPETITIVE ADVANTAGE OF NUMERICAL MACHINING COMPLEX COMPANY LTD NAIROBI
Ocharo Evans Nyandigisi - Master of Business Administration (Strategic Management), Kenyatta University, Kenya
Dr. Linda Kimencu - Kenyatta University, Kenya
ABSTRACT
In fast-moving corporate environments open to global competition and characterized by dispersion in the geographical and industrial firms sources of innovation. High cost of inputs, as a result of poor infrastructure and high cost of doing business, prices of locally manufactured products are relatively high. This limits their competitiveness in regional markets and also negatively impacts on capacity utilization. NMC Company is facing a slowdown in production, leading to cancellation of orders by key clients. These needs have been changing as witnessed in the global market. The main objective of this study was to evaluate the managerial capabilities and competitive advantage of manufacturing Numerical Machining Complex Company ltd Nairobi. The specific objectives were to determine the effect of knowledge management, organizational transformation, coordination of managerial processes and discontinuous innovation on competitive advantage in the Numerical Machining Complex Company Ltd Nairobi. The study adopted a descriptive research designed to aim at evaluating the managerial capabilities on competitive advantage in the manufacturing industry. The target population of this study was the 167-management staff and subordinate staff in Numerical Machining Complex (NMC) Ltd from which 50 respondents were picked using stratified random sampling which is 30 per cent of the target population which composed top level management, middle level management and subordinates. Primary data was obtained using self-administered open and closed ended questionnaires. Quantitative data was analyzed using descriptive statistics such as frequencies, percentages, mean score and standard deviation. The study used multiple regressions analysis to analyze the collected data to measure the managerial capabilities on competitive advantage in the manufacturing industry. The information was presented inform of tables and graphs. In practice, this research would be beneficial to the Numerical Machining Complex Ltd top management and strategic planning managers, as it would help them apply managerial capabilities for value addition, business growth and enhancing competitive advantage. The study would also help Government policy makers, for instance, the National Treasury, among others, to utilize the findings to regulate the manufacturing industry by coming up with customized regulatory policies that promote growth of the manufacturing companies and set up fair competition in the market. The study found that knowledge management affects competitive advantage in the Numerical Machining Complex Company Ltd Nairobi greatly, that organizational transformation affects competitive advantage in the Numerical Machining Complex Company Ltd Nairobi greatly, that coordination of managerial processes affects competitive advantage in the Numerical Machining Complex Company Ltd Nairobi greatly and that discontinuous innovation affects the competitive advantage in the Numerical Machining Complex Company Ltd Nairobi to a moderate extent. The study concluded that organizational transformation had the greatest effect on competitive advantage in the Numerical Machining Complex Company Ltd Nairobi followed by knowledge management then discontinuous innovation while coordination of managerial processes had the least effect on competitive advantage in the Numerical Machining Complex Company Ltd Nairobi. The study recommends that management in firms in Kenya should engage with emerging markets more closely, that management practices needs continuous and sustained supervision, improvement and adequate funding in view of it importance’s and that organizations should endeavor to improve their employees’ skills and competences through training and good working environment to help keep the employees who are experienced and attract other competent ones and therefore help companies to achieve sustainable competitive advantage.
