Analysis of Factors Affecting the Operational Efficiency of Jua Kali Sector: a Case of Apparel Industry in Nairobi, Kenya

Abstract

All firms’ value operational efficiency but few organizations excel at designing, communicating and managing their performance-improvement initiatives. The specific objectives of the study were to:  identify the effect of management factors such as planning, organizing and leading, the contribution of communication, the effect of artisans’ level of skills, and the influence of financial resources to operational efficiency as well as investigate the constraints faced by the entrepreneurs in their effort to achieve operational efficiency.  The study used the questionnaire as the main tool for data collection. Findings reveal that management factors such as leadership, planning and organizing are some of the management aspects that are core in achieving operational efficiency in the apparel industries. Communication plays a key role in work places because an idea or procedure no matter how great, is useless until it is transmitted and understood by others. Financial resource availability is necessary in improving the working conditions, employing other factors that affect operational efficiency and in retaining committed employees. Artisan skill and experience was found to be of importance by the research in that it facilitated artisans to profitability as viewed by all the respondents. The research further revealed that most of the apparel industries do not operate efficiently because they are ignorant of the factors that affect operational efficiency and also they do not have financial resources that are necessary in employing these factors. The study recommends that improving operational efficiency should be one of the company’s top objectives. Implementation of company-wide operational efficiency framework will enable organizations to drive consistency in direct management of its core business processes.

Keywords: Operational Efficiency, Jua Kali Sector, Management, Communication, Artisans Level of Skills, Financial Resources