Advances in Economics and Business Vol. 4(8), pp. 468 - 475
DOI: 10.13189/aeb.2016.040809
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Forecasting Techniques, External Operating Environment and Accuracy of Performance Forecasting

E. W. Chindia ^*
Department of Management Science, School of Business, College of Humanities & Social Sciences, University of Nairobi, Kenya

ABSTRACT

This article explores the influence of the external operating environment (EOE) on the accuracy of performance forecasting (APF) in large manufacturing firms (LMFs) in Kenya. The objective was to assess if any aspects of the EOE influenced measures of APF. APF, in manufacturing operations, is seldom derived accurately. However, since LMFs tend to hire skilled personnel, this survey presumes that these qualified forecasters ensure APF when preparing future budgets. EOE has been known to influence the behavior of operations resulting in either adverse or favorable organizational performance. The study identified EOE factors that impact organizational performance and tested these against measures of APF. Regression analysis was applied using data collected through a structured questionnaire administered among randomly selected LMFs. Results indicated that there was evidence that EOE had an influence on some measures of APF and the established forecasting techniques (FTs), objective, judgmental and combined forecasting.

KEYWORDS
External Operating Environment, Accuracy of Performance Forecasting, Large Manufacturing Firms, Forecasting Techniques

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] E. W. Chindia , "Forecasting Techniques, External Operating Environment and Accuracy of Performance Forecasting," Advances in Economics and Business, Vol. 4, No. 8, pp. 468 - 475, 2016. DOI: 10.13189/aeb.2016.040809.

(b). APA Format:
E. W. Chindia (2016). Forecasting Techniques, External Operating Environment and Accuracy of Performance Forecasting. Advances in Economics and Business, 4(8), 468 - 475. DOI: 10.13189/aeb.2016.040809.