Influence of Strategic Reforms on Performance of Sugar Manufacturing Firms in Western Kenya

Abstract

Globally, firms are bound to modify their business operations to remain relevant and keep abreast with the constantly changing environment. This study is therefore meant to establish the influence of of industrial reforms on performance of sugar manufacturing firms in Western Kenya. The independent variables that guided this study were farming methods reforms, product diversification reforms, corporate social responsibility reforms and marketing strategies as a reform while the dependent variable was fiancial performance of sugar manufacturing firms in Western Kenya. The study was guided by Resource Based View and Systems Theories. Target population was the employees of sugar manufacturing firms. Simple random sampling technique was used to arrive at the sample size of 254 respondents using Yamane Formula. Primary data collection instruments mainly the questionnaires was used in the study. The questionnaire was preferred because it can be used to collect information from a large group of respondents over a short period of time. To ensure that content and construct validity was achieved on the construction of questionnaire; the study involved the experts in its construction. Cronbach's Alpha of Coefficient was used to test on the reliability of the research instruments. An alpha value of at least 0.7 or greater in social science research work was preferred. An alpha coefficient value of the Cronbach Alpha of coefficient attained was 0.871 for farming methods, 0.903 for product diversification, 0.863 for corporate social responsibility and 0.877 for marketing strategies, thus indicating research instruments were reliable. Both descriptive and inferential statistics were used in this study. Descriptive statistics involved use of mean, percentages and frequency distribution while inferential statistics involved use of correlation and regression. The findings reveal that farming methods account for 58.3% of performance, given R-square (r²) of 0.583. Further, the coefficients of determination, R-square (r²) of 0.457 implies 45.7% of the variance in performance of sugar manufacturing firms is attributed to product diversification. The coefficients of determination, R-square (r²) of 0.559 implies 55.9% of the variance in performance of sugar manufacturing firms is attributed to corporate social responsibility. In addition, the coefficients of determination, R-square (r²) of 0.519 implies 51.9% of the variance in performance of sugar manufacturing firms is attributed to marketing strategies. The researcher recommends sugar manufacturing firms to be actively get engaged in improving the farming methods since they have an influence on the performance. Sugar manufacturing firms should actively engage in product diversification since it improves their performance. Sugar manufacturing firms need to engage in corporate social responsibility activities since it has an effect on the performance. Sugar manufacturing firms need to get involved in employing different marketing strategies since it has an influence on their performance. The findings of the research is useful to investors, shareholders, management, policy makers and employees of sugar manufacturing companies. This study also contributes to the existing body of knowledge and forms a basis of reference in future studies.