Abstract:
The study sought to examine the influence of strategic capacity management on the service quality of the shopping malls in Nairobi County, Kenya. The study focused on the following research questions: what is the effect of matching supply and demand on service quality among shopping malls in Nairobi?; how does forecasting future demand affect service quality among shopping malls in Nairobi?; and what are the capacity management strategies used by shopping malls in Nairobi? The study used descriptive research design to explain the variables of the study. The study targeted 1470 tenants in the major shopping malls based in Nairobi County.
Applying Slovene formula, the study engaged 94 tenants drawn purposively from various business form the respective shopping malls. A questionnaire was the key instrument for primary data collection which was administered using Survey Monkey procedure. Content analysis method was applied to analyze qualitative data obtained from the secondary sources. Inferential statistics such as percentages as well as descriptive statistics such as graphs and pie charts were used to analyse quantitative data obtained from the survey. Finally, the study used content and principle component analyses to extract predominant capacity management strategies used by shopping malls in Nairobi.
The study found that the shopping malls in the study area did not employ part time staff on part time basis during periods of increased demands. The study also found that shifting capacity majorly responded to quick clearance while contractors in service provision led to reduced complains and continuous service, whereas flexible staff helped in meeting service time. The Spearman’s correlation coefficients established a prima-facie evidence of a positive association between service quality and price differentiation, promoting off-peak demand, communicating with customers and subcontracting capacity. The study recommends that efforts must be geared towards enhancing pricing or cost effectiveness of their malls in order to increase the probability of service quality in the shopping malls. The management of the shopping malls should consider putting in place the recommended capacity management strategies (shifting, offloading and subcontracting) to even better its service quality.
