ENERGY EFFICIENCY AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA
Abstract
Purpose of the study: The purpose of this study was to examine the relationship between energy efficiency and performance of large manufacturing firms in Kenya. Large Manufacturing firms are critical to the economic development of a nation and the wellbeing of its citizens. However, most of the large manufacturing firms in Kenya have recently recorded a decline in performance.
Research methodology: The study applied descriptive and correlational research designs. The target population was 499 and the sample size was 336 respondents selected through stratified and simple random sampling techniques. A questionnaire was designed, and experts in the fields of strategic management were used to determine the validity and reliability of the data collection instruments. The unit of analysis included large manufacturing firms, while the unit of observation included managers from middle level management and top-level management. The study used descriptive and inferential statistics to analyze the results with help of SPSS version 22.
Findings: The study found significant correlation between energy efficiency (0.499 and the performance of large manufacturing firms. The study found that energy Efficiency exhibited the strongest positive influence (Beta = 0.994, p = 0.001), accounting for 24.9% of the variance in firm performance (R² = 0.249).
Conclusion: The study concludes that energy efficiency positively influences the performance of large manufacturing firms in Kenya. The positive influence observed suggests that companies that prioritize energy efficiency measures, such as investing in renewable energy sources, implementing strategies to improve energy efficiency, and conducting regular energy audits, are more likely to achieve better overall performance outcomes.
Recommendations: The study recommends that large manufacturing firms in Kenya prioritize investments in energy efficiency initiatives as a strategic imperative for enhancing their performance. It is crucial for policymakers and industry stakeholders to support and incentivize the adoption of energy-efficient practices through targeted policies, financial incentives, and capacity-building initiatives to promote a more sustainable and resilient manufacturing sector in Kenya.
Keywords: Energy efficiency, performance, large manufacturing firms, Kenya
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