Abstract: This study sought to identify the strategic drivers influencing reshoring decision among manufacturing multinational corporations in Kenya and was guided by the following research objective, finding out extent to which production cost influenced production reshoring decision. It also considered the moderating effect of market condition on reshoring decision. The study adopted cross sectional design and census method targeting 96 manufacturing multinational corporations drawn from membership of Kenya Association of Manufacturers with a response rate of 88.9%. Descriptive analysis, factor analysis, multicollinearity test, ANOVA test and logistic regression test were carried out for each variable. Statistical Package for Social Sciences Version 24 was used as the tool for data analysis. The study found out that production cost have positive influence on production reshoring decision. The combined effect of all independent variables and the moderating variable reflected a positive effect of 78.9% on the dependent variable. The study model was also found to be the optimal model for the study. The major recommendations from the study include: policy interventions Kenyan government on manufacturing labour and energy costs in order to realize the aspirations of Kenya’s Vision 2030 on industrialization; investment in agile manufacturing by MNCs to increase operational flexibility, improve capacity to service unique customer orders, short production runs and overall operational efficiency; investment in supportive infrastructure to improve supply chain efficiencies and enable manufacturing entities improve on customer responsiveness and overall competitiveness of the sector.
Title: PRODUCTION COST INFLUENCING PRODUCTION RESHORING DECISION AMONG MANUFACTURING MULTINATIONAL CORPORATIONS IN KENYA
Author: James Gatundu, Prof. Margaret Oloko, Dr. Nicholas Letting, Dr. James Kahiri
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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