Managerial Competencies and Firm Performance in the Furniture Manufacturing Sector in Kenya
Purpose: The study sought to examine the contribution of managerial competencies with indicators namely leadership, employee development, decision making, succession planning and governance on the performance of the furniture manufacturing sector with firm size and firm age as moderating variable....
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| Format: | Article |
| Language: | English |
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Oles Honchar Dnipro National University
2022-03-01
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| Series: | European Journal of Management Issues |
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| Online Access: | https://mi-dnu.dp.ua/index.php/MI/article/view/346 |
| Summary: | Purpose: The study sought to examine the contribution of managerial competencies with indicators namely leadership, employee development, decision making, succession planning and governance on the performance of the furniture manufacturing sector with firm size and firm age as moderating variable.
Design/Method/Approach: The study adopted a descriptive and explanatory research design of which a sample of 280 licensed firms was randomly selected. Structured questionnaires were distributed to the managers and a factor analysis was used to reduce the number of variables and establish the underlying constructs while analysis of moments of structures was applied to develop theory.
Findings: The study found that managerial competencies and firm performance had a positive and statistically significant contribution. The moderating effect of firm size and age on firm performance was found negative predicting that the variable has no moderating influence on the firm performance.
Theoretical implications: This study concluded that to enhance firm’s performance measured in terms of profitability and growth there is need to manage and sustain firm performance based on leadership, employee development, decision-making succession planning and governance to create competitive advantage through effective strategy implementation process.
Practical implications: This study will not only add value to the existing body of knowledge in strategic management practice but by pointing out that when implementing strategy, CEOs and senior managers should consider these factors in order to improve firm performance.
Originality/Value: This study is unique in the sense that it provides an expansion of the conceptualization of managerial competencies framework.
Research limitations/Future research: The study findings were solely based on the views of managers/owners and therefore, the results are prone to manager’s bias. Thus, more studies should incorporate other stakeholders namely consumers, suppliers and dealers. The study was only based on furniture manufacturing firms in eight counties and therefore, generalizability of the finding could be limited to only the eight Counties. Thus, more studies should be carried out to include other Counties making the study more national.
Paper type – Empirical
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| ISSN: | 2519-8564 2523-451X |