Fostering competitiveness through cost minimisation strategies: Evidence from indigenous paint manufacturers in Zimbabwe

Abstract

In this study, the researcher aimed at fostering competitiveness through cost minimization strategies evidenced by indigenous paint companies in Zimbabwe. To address this, the researcher determined the impact of these strategies on competitiveness. The strategies examine are budgetary control, Quality circles, Value analysis, Kaizen costing and Just in time philosophy. Literature review was done to determine cost minimization strategies and the study model was established. Study hypothesis was developed and proposed research model was established based on existing body of literature. The researcher adopted an explanatory research design to explain the relationship between cost minimization strategies and competitiveness. The data was collected from 20 paints companies and 100 respondents were randomly selected from these companies and online survey questionnaires were used to collect data from respondents. Stata was used to analyze data through regression analysis. The results indicated that every unit increase in Budgetary Control, Value Analysis, Quality Circles and Just in Time, there is unit increase in competitiveness score respectively, holding all other variables constant. All these relationships are statistically significantly different because the p-value assorted with each one of them are small. However, the effect of Kaizan Costing on costing is insignificant since the p- value associated with it is very large. The results found also suggest that the overall average cost minimization scores are not affected by company size and the same applies to period of operation. The study also gives management and policy makers cost minimization strategies that should be implemented to enhance competitiveness of indigenous paint manufacturing companies in Zimbabwe.