Managerial Capabilities And Competitive Advantage Of Numerical Machining Complex Company Ltd Nairobi

ABSTRACT

In fast-moving corporate environments open to global competition and characterized by

dispersion in the geographical and industrial firms sources of innovation. High cost of inputs,

as a result of poor infrastructure and high cost of doing business, prices of locally

manufactured products are relatively high. This limits their competitiveness in regional

markets and also negatively impacts on capacity utilization. NMC Company is facing a

slowdown in production, leading to cancellation of orders by key clients. These needs have

been changing as witnessed in the global market. The main objective of this study was to

evaluate the managerial capabilities and competitive advantage of manufacturing Numerical

Machining Complex Company ltd Nairobi. The specific objectives were to determine the

effect of knowledge management, organizational transformation, coordination of managerial

processes and discontinuous innovation on competitive advantage in the Numerical

Machining Complex Company Ltd Nairobi. The study adopted a descriptive research

designed to aim at evaluating the managerial capabilities on competitive advantage in the

manufacturing industry. The target population of this study was the 167-management staff

and subordinate staff in Numerical Machining Complex (NMC) Ltd from which 50

respondents were picked using stratified random sampling which is 30 per cent of the target

population which composed top level management, middle level management and

subordinates. Primary data was obtained using self-administered open and closed ended

questionnaires. Quantitative data was analyzed using descriptive statistics such as

frequencies, percentages, mean score and standard deviation. The study used multiple

regressions analysis to analyze the collected data to measure the managerial capabilities on

competitive advantage in NMC. The information was presented inform of tables and graphs.

In practice, this research would be beneficial to the Numerical Machining Complex Ltd top

management and strategic planning managers, as it would help them apply managerial

capabilities for value addition, business growth and enhancing competitive advantage. The

study would also help Government policy makers, for instance, the National Treasury, among

others, to utilize the findings to regulate the manufacturing industry by coming up with

customized regulatory policies that promote growth of the manufacturing companies and set

up fair competition in the market. The study found that knowledge management affects

competitive advantage in the Numerical Machining Complex Company Ltd Nairobi greatly,

that organizational transformation affects competitive advantage in the Numerical Machining

Complex Company Ltd Nairobi greatly, that coordination of managerial processes affects

competitive advantage in the Numerical Machining Complex Company Ltd Nairobi greatly

and that discontinuous innovation affects the competitive advantage in the Numerical

Machining Complex Company Ltd Nairobi to a moderate extent. The study concluded that

organizational transformation had the greatest effect on competitive advantage in the

Numerical Machining Complex Company Ltd Nairobi followed by knowledge management

then discontinuous innovation while coordination of managerial processes had the least effect

on competitive advantage in the Numerical Machining Complex Company Ltd Nairobi. The

study recommends that management in firms in Kenya should engage with emerging markets

more closely, that management practices needs continuous and sustained supervision,

improvement and adequate funding in view of it importance’s and that organizations should

endeavor to improve their employees’ skills and competences through training and good

working environment to help keep the employees who are experienced and attract other

competent ones and therefore help companies to achieve sustainable competitive advantage.