Influence of Management Capabilities on the Performance of Nzoia Sugar Company

Abstract

The purpose of this study was to determine the influence of management capabilities on the performance of Nzoia Sugar Company Limited. The study was based on the Resource Based View Theory. A case study and survey designs were employed in this research. The study targeted a total of 1,403 employees comprising of 790 lower level employees, 422 Supervisory level employees, 182 middle level management and nine top level management. Random stratified sampling technique was used to select 210 respondents. Data collection instruments comprised of questionnaires and interview schedules. Validity was determined by content validity and reliability using Cronbach alpha method which had Cronbach Alpha Coefficient of 0.783 which was greater than 0.7. Data was collected and analyzed using descriptively. It was recommended that there was need for organization to develop customer care capability that would enable the staff to interact with customers and other stakeholder at all level; that organization should develop market capability that ensures maximum reach out to all possible customers; the firms needed to adopt management capabilities that can make them stand out in the customers’ eye and suit the prevailing environmental conditions at the given period of time and finally organizations need to set up sufficient budget that would enable them adopt most current technologies which would result to increase in performance. It was concluded that an increase in customer service management capability constructs like repeat purchase, confidentially of customer information and different customer needs once enhanced could translate to higher firm performance; attributes of marketing capabilities like employee training on basic marketing skills, e-marketing and marketing intelligence information should be enhanced; internet penetration, automation of processes, use of e-marketing and procurement could lead to improved firm performance and setting targets for the company which are attainable, monitoring and evaluation of all activities would lead to improved firm performance. The findings of this study shall be useful to the policy makers, strategists and the researcher in making informed conclusions and recommendations. The findings shall give guidance to the managers of different departments in coming up with proper policies in management.

Keywords: Management, Capabilities, Firm, Performance, Competitive advantage, automation