Operational Efficiency and Organizational Performance of Alcoholic Beverage Distribution Firms in Machakos County, Kenya
DOI:
https://doi.org/10.47672/jsm.3008Abstract
Purpose: In Kenya’s regulated alcoholic beverage distribution industry, companies in Machakos county face small profit margins due to licensing fees, transport inefficiency and the county level devolved compliance costs. The study therefore sought to assess the correlation between operational efficiency and organizational performance of alcoholic beverage distribution firms in Machakos County, Kenya.
Methodology: The study used a mixed-methods approach. The target was 20 companies and due to the close proximity of Machakos county from Nairobi, Machakos creates a unique commercial and distribution channel dynamics. A total of 200 respondents (managers and staff) were targeted, yielding 186 valid responses, which is a 93% response rate. The data were gathered through the structured questionnaires and semi-structured interview and analyzed through descriptive statistics, Pearson correlation, multiple regression and thematic analysis.
Findings: The results showed that respondents perceived operational efficiency was at a high level with the overall mean score of 4.39 (SD = 0.67). There was a significant and positive correlation between operational efficiency and organizational performance (r = .811, p < .05). Multiple regression analysis also found that operational efficiency was a statistically significant predictor of organizational performance (β = .334, p < .001). Qualitative evidence showed that the use of efficient workflows, resources, process optimization and minimization of operational delays led to better service reliability, customer satisfaction and profitability.
Unique Contribution to Theory, Practice, and Policy: Based on the study outcome, alcoholic beverage distribution firms should be encouraged to invest in inventory management, route optimization and waste reduction processes to sustain organizational performance in county level markets.
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Copyright (c) 2026 Joshua Wambua Kithome, Dr. Margaret Nganu, Dr. Ruth Muinga
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