How Technological Innovation is Influencing Performance of the Cement Manufacturing Firms in Kenya

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Paul Maku Gichohi

Abstract

The business environment of cement manufacturing firms in Kenya has been very volatile. The uncertainties are largely occasioned by socio-economic reforms, regulatory anxieties, technological advancements, competition and effects of globalization. As a result, cement manufacturing firms are expected to be adaptive and responsive to the changing environment by leveraging on technology. However, there has been slow uptake of technology by cement manufacturing firms in Kenya, which has occasioned low production capacity. The reduced production capacity is attributable to operational inefficiencies that result to unprecedented sustainability challenges and non-competitiveness. This study aimed to assess the role of technological innovation in influencing the performance of cement manufacturing firms in Kenya. It utilized the diffusion of innovation theory and Schumpeter's theory of innovation. The study population comprised the nine cement producing companies in Kenya. A cross-sectional survey research design was adopted, and the units of observation were the 79 department heads. A closed-ended questionnaire was used to collect data. Pretesting of the instruments was done to check the content, construct validity, and reliability. The mean, standard deviation, Pearson correlation and linear regression analysis were used to analyze the data. The findings revealed a positive relationship between technological innovation and performance of Kenyan cement manufacturers. Regression results confirmed that technological innovation significantly predicts approximately twenty-five per cent of the variation in the performance of Kenya's cement manufacturing firms. The study concluded that technological innovation is significant in influencing the success of cement manufacturing firms. It recommended adopting an integrated manufacturing management information system, implementing continuous improvement of processes, enhancing collaborations in the development of industry-specific technology, innovative technology in the production processes, and training staff on technical skills. The findings are valuable in informing production practices in the manufacturing industry.

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Gichohi, P. M. (2022). How Technological Innovation is Influencing Performance of the Cement Manufacturing Firms in Kenya. International Journal of Professional Practice, 10(1), 114–129. https://doi.org/10.1234/ijpp.v10i1.131
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