Authors :
Carren Jepkorir; Dr. Donald Gulali
Volume/Issue :
Volume 9 - 2024, Issue 3 - March
Google Scholar :
https://tinyurl.com/ycycu388
Scribd :
https://tinyurl.com/4d2zy86h
DOI :
https://doi.org/10.38124/ijisrt/IJISRT24MAR894
Abstract :
The underperformance of the Kenyan sugar
sector is a major issue that is affecting the ability of the
sector to generate revenues or profits that can be used for
supporting economic growth and development. Even
though the current sugarcane cover is more than 220,000
ha, productivity has remained low achieving only 55
tonnes/ha. Meanwhile, production costs rose sharply
reaching US$1007/tonne in 2018. Strategic flexibility in the
form of production flexibility has been proposed as a
potential solution to help improve the performance and
competitiveness of the sugar sector. The aim of this study
was to examine the effects of production flexibility on the
performance of state-owned sugar companies in Western
Kenya. A cross-sectional interview was conducted on a
sample of 63 supervisors from the sugar factors selected
(Miwani, Mumias, Nzoia, Sony Sugar, Muhoroni and
Chemelil Sugar Companies). The regression analysis
depicting the relationship between the strategic
performance of these organizations and the production
flexibility approaches put in place shows that the
relationship was significant, F (9, 53) = 27.076, p = 0.000.
In this relationship, there was a strong positive
relationship between production flexibility and the
strategic performance of the organizations in the market.
Therefore, the relationship implied that the amount of
responsiveness to potential changes in the market through
product design changes and the development of new
products and new services was pivotal for the strategic
performance and productivity of the factories. The other
two factors included in the model namely education and
years of experience of the employees did not affect the
strategic performance of these factories. From the study, it
is recommended that there is need for public sugar
companies to adjust production capacity, adopt
automation and evolving technologies so as to improve on
their performance and be able to remain competitive in the
market.
The underperformance of the Kenyan sugar
sector is a major issue that is affecting the ability of the
sector to generate revenues or profits that can be used for
supporting economic growth and development. Even
though the current sugarcane cover is more than 220,000
ha, productivity has remained low achieving only 55
tonnes/ha. Meanwhile, production costs rose sharply
reaching US$1007/tonne in 2018. Strategic flexibility in the
form of production flexibility has been proposed as a
potential solution to help improve the performance and
competitiveness of the sugar sector. The aim of this study
was to examine the effects of production flexibility on the
performance of state-owned sugar companies in Western
Kenya. A cross-sectional interview was conducted on a
sample of 63 supervisors from the sugar factors selected
(Miwani, Mumias, Nzoia, Sony Sugar, Muhoroni and
Chemelil Sugar Companies). The regression analysis
depicting the relationship between the strategic
performance of these organizations and the production
flexibility approaches put in place shows that the
relationship was significant, F (9, 53) = 27.076, p = 0.000.
In this relationship, there was a strong positive
relationship between production flexibility and the
strategic performance of the organizations in the market.
Therefore, the relationship implied that the amount of
responsiveness to potential changes in the market through
product design changes and the development of new
products and new services was pivotal for the strategic
performance and productivity of the factories. The other
two factors included in the model namely education and
years of experience of the employees did not affect the
strategic performance of these factories. From the study, it
is recommended that there is need for public sugar
companies to adjust production capacity, adopt
automation and evolving technologies so as to improve on
their performance and be able to remain competitive in the
market.
