ADVANCED MANUFACTURING TECHNOLOGY, ORGANIZATIONAL RESOURCES AND PERFORMANCE OF LARGE MANUFACTURING COMPANIES IN KENYA

Abstract

The purpose of this paper was to investigate the relationship between Advanced
Manufacturing Technology (AMT), organizational resources and performance of
large manufacturing companies in Kenya. A descriptive cross sectional survey
method was used in the study. Purposeful sampling was used to identify the
population of the study which comprised 55 large manufacturing companies in
Kenya and that were members of Kenya Association of Manufacturers. A selfadministering
questionnaire with questions on each variable in the study was
administered on the population of the study. Senior managers in these companies
were requested to complete the questionnaires and a total of 45 questionnaires
representing a response rate of 81.8% were returned. Statistical tests using linear
regression were used to test hypothesis and also determine the relations between the
study variables using the collected data. Findings on the dimensions of advanced
manufacturing technology revealed a significant relationship between
manufacturing technology dimension, planning technology dimension and
performance of large manufacturing companies in Kenya. Design technology
dimension was not significant in this relationship. The results also show a significant
relationship between advanced manufacturing technology and performance of large
manufacturing companies in Kenya. Further, the results revealed that organization
resources do not moderate the relationship between advanced manufacturing
technology and performance of large manufacturing companies in Kenya, but have
a significant positive effect on the coefficient of advanced manufacturing technology.
Arising from these findings, the study concluded that advanced manufacturing
technology, manufacturing technology dimension and planning technology
dimension allow organizations to improve their performancee using resources they
own, when the technologies are implemented correctly. The implication of the study
findings is that organizations need to determine the optimal mix of the three
technology dimensions of advanced manufacturing technology during
implementation to realize maximum benefits from their investment in advanced
manufacturing technology. Further, from the low application of industrial robots in
the manufacturing process by large manufacturing companies in Kenya observed in the study, there is an opportunity to develop capabilities to increase the rate of their
application and further enhance performance of large manufacturing companies in
Kenya. The results of this study can be used by Managers to improve performance
in small, medium and large manufacturing companies.