Managerial Competencies and Firm Performance in the Furniture Manufacturing Sector in Kenya

Keywords: leadership, employee development, decision-making, succession planning, governance and management systems


Purpose: The study aims to examine the contribution of managerial competencies with indicators, namely leadership, employee development, decision making, succession planning and governance to the performance of the furniture manufacturing sector with firm size and firm age as a moderating variable.

Design / Method / Approach: The study adopted a descriptive and explanatory research design of which a sample of 280 licensed firms was randomly selected. Structured questionnaires were distributed to the managers and a factor analysis was used to reduce the number of variables and find out the underlying constructs while the analysis of moments of structures was applied to develop a theory.

Findings: The study found that managerial competencies and firm performance had a positive and statistically significant contribution. The moderating effect of firm size and age on firm performance was found negative predicting that the variable had no moderating influence on firm performance.

Theoretical Implications: This study concludes that to enhance firm performance measured in terms of profitability and growth there is need to manage and sustain firm performance based on leadership, employee development, decision-making, succession planning and governance to create competitive advantages through an effective strategy implementation process.

Practical Implications: This study will not only add value to the existing body of knowledge in strategic management practice but also point out that while implementing the strategy, CEOs and senior managers should consider these factors in order to improve firm performance.

Originality / Value: This study is unique since it provides an expansion of the conceptualization of a managerial competency framework.

Research Limitations / Future Research: The study findings are solely based on the views of managers/owners and therefore, the results are prone to managers’ bias. Thus, more studies should incorporate other stakeholders, namely consumers, suppliers and dealers. The study is only based on furniture manufacturing firms in eight counties and therefore, generalizability of the findings could be limited to only the eight counties. Thus, more studies should be carried out to include other counties making the study more national.

Paper type: Empirical


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How to Cite
Were, J. (2022). Managerial Competencies and Firm Performance in the Furniture Manufacturing Sector in Kenya. European Journal of Management Issues, 30(1), 25-35.