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 objectives; finding out extent to which production cost, product quality, operational flexibility, reduced time to market and hidden 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 product quality 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 was to improve capacity to service unique customer orders. Finally, the government should strengthen intellectual property laws and enhance their enforcement to reduce incidences of counterfeit products. This would improve overall Kenyan manufacturing entities competitiveness and reduced unfair competition from counterfeit products.
Title: PRODUCT QUALITY 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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