Operational Practices and Performance of Selected Textile Firms Within Export Processing Zone Athi River, Kajiado County, Kenya

Ayub Malala^1, and Janet Muthimi¹

¹School of Business,Economics and tourism,Kenyatta university,Nairobi Kenya

Cite this paper:
Ayub Malala and Janet Muthimi. Operational Practices and Performance of Selected Textile Firms Within Export Processing Zone Athi River, Kajiado County, Kenya. Journal of Business and Management Sciences. 2024; 12(4):197-223. doi: 10.12691/jbms-12-4-4

Abstract

Kenya's garment and textile business encounters numerous challenges which arise from the continuous decrease in the spending power of the majority population, resulting in reduced demand for textile items. Furthermore, the country is vulnerable to intense competition in third markets from well-established manufacturing economies such as China, as a result of inexpensive imports and the removal of quotas following the expiration of the Agreement on Textiles and Clothes. This, study sought to examine operational practices and performance of selected textile firms within Export Processing Zone Athi River, Kajiado County in Kenya. Specifically, the study investigated the impact of organizational systems approaches, innovation approaches and stakeholder involvement practice on performance of selected textile firms within Export Processing Zone Athi River, Kajiado County in Kenya. Using descriptive research design, a total of 29 Export Processing Zone Businesses in Athi River, Kajiado County, made up the research population. The sample size of 213 was drawn from a population consisting of 457 staff that were administrative staff, the research made use of a stratified simple random sampling design. The data collection method involved use of questionnaire for primary data source which were subjected to validity and reliability tests. The inferential techniques were used to determine central tendency metrics like the standard deviations and study mean and std. deviation. Finally, conducting regression and correlation analysis to compare variables. Using a statistical tool for social science to analyze data rendered the analysis less complex. For the purpose of making the comprehension of the quantitative data as straightforward as possible, tables were utilized. From the analysis, among selected textile firms within export processing Zone, a positive and statistically significant correlation ((β)=0.217, t=3.874, p<0.05) was found between the use of Organizational systems practice and increase in Performance of textile firms. From the analysis, among selected textile firms within export processing Zone, it was found that there was a significant and positive relationship between the Innovation practices and the Performance of textile firms (β) 0. 397, t=5.712, p-value<0.05). The results of the study's analysis showed that there was a positive and significant relationship between Stakeholder Involvement Practice and Performance of textile firms among selected textile firms within export processing Zone, where the (β) value was 0. 476, the t=8.50, p-value was less than 0.05. The study recommended that setting clear performance targets for departments and the organization, along with encouraging open communication and feedback from employees, can significantly contribute to improving organizational performance. Informal discussions, teamwork, and a transparent process for assessing new ideas can promote an innovative environment within EPZs. Considerations should be made by policy makers in EPZs to maintain a database or contact sheet for all stakeholders involved in the project and develop an understanding of stakeholders' opinions, concerns, and best practices.

Keywords:
organizational system practices innovation practices stakeholder involvement practices & performance

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