ADVANCED MANUFACTURING TECHNOLOGY, COMPETITIVE ADVANTAGE AND PERFORMANCE OF LARGE MANUFACTURING COMPANIES IN KENYA

Abstract

The purpose of this paper was to investigate the relationship between Advanced
Manufacturing Technology (AMT), competitive advantage 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 of 55 large manufacturing companies in
Kenya and were members of Kenya Association of Manufacturers. A selfadministering
questionnaire was administered on the population of the study and
responses from 45 large manufacturing companies, which represented a response
rate of 81.8% were received. Statistical tests using linear regression were used to
test the developed study hypothesis and also determine the relations between the
study variables using the collected data. Findings revealed a significant relationship
between advanced manufacturing technology and performance of large
manufacturing companies in Kenya and that other factors that were not considered
in the study also affect this relationship. The study also found that competitive
advantage does not mediate the relationship between advanced manufacturing
technology and performance of large manufacturing companies in Kenya. Further,
the results revealed that advanced manufacturing technology has a significant and
positive relationship with competitive advantage. Arising from these findings, the
study concluded that effective implementation of advanced manufacturing
technology to manage the manufacturing processes enables organizations to
improve their performance and large manufacturing companies can use advanced
manufacturing technology to develop competitive advantage. The implication of the
study findings is that organizations need to determine the other factors that affect
the relationship between advanced manufacturing technology and performance of
large manufacturing companies to realize the benefits associated with implementing
advanced manufacturing technology in the production process. Large
manufacturing companies also need to develop mechanisms of sustaining
competitive advantage developed through advanced manufacturing technonology and performance of large manufacturing companies in Kenya. Further,
the results revealed that advanced manufacturing technology has a significant and
positive relationship with competitive advantage. Arising from these findings, the
study concluded that effective implementation of advanced manufacturing
technology to manage the manufacturing processes enables organizations to
improve their performance and large manufacturing companies can use advanced
manufacturing technology to develop competitive advantage. The implication of the
study findings is that organizations need to determine the other factors that affect
the relationship between advanced manufacturing technology and performance of
large manufacturing companies to realize the benefits associated with implementing
advanced manufacturing technology in the production process. Large
manufacturing companies also need to develop mechanisms of sustaining
competitive advantage developed through advanced manufacturing technology.
Key words: Advanced Manufacturing Technology, Competitive Advantage, Large
manufacturing companies and Organizational Performance.