Open AccessTesting the relationship between constraints management and capacity utilization of tea processing firms: Evidence from Kenya
Author(s) -
Richard Bitange Nyaoga,
Mingzheng Wang,
Peterson Obara Magutu
Publication year - 2015
Publication title -
future business journal
Language(s) - English
Resource type - Journals
eISSN - 2314-7202
pISSN - 2314-7210
DOI - 10.1016/j.fbj.2015.10.001
Subject(s) - kenya , business , sample (material) , industrial organization , capacity utilization , operations management , environmental economics , economics , microeconomics , chemistry , chromatography , political science , law
Despite having one of the many studies in constraints management and capacity utilization, there is dearth of the same in the tea processing firms. The purpose of this study was to link constraints management to capacity utilization of tea processing firms by focusing on a Kenyan developing economy. Specifically the study determines the relationship between constraints management and capacity utilization of tea processing firms in Kenya. A multiple linear regression and correlation models were performed on a sample that included 84 firms operating in the Kenyan tea industry for the period 2008–2012. The study established that the relationship between constraints management and the firm’s capacity utilization is significant and positive