EFFECT OF STRATEGIC POSITIONING ON FIRM PERFORMANCE: A SURVEY OF CONTAINER FREIGHT STATION OPERATORS IN MOMBASA COUNTY, KENYA
Abstract
This study sought to explore the effect of strategic positioning on firm performance-a survey of CFS operators in Mombasa. The specific objective of the study were: to assess the effect of differentiation strategy on firm performance on CFS operators in Mombasa County, to examine the effect of cost leadership strategy on firm performance on CFS operators in Mombasa County, to evaluate the effect of perceived quality of service strategy on firm performance on CFS operators in Mombasa County and to evaluate the effect of business diversification strategy on firm performance on CFS operators in Mombasa County. The study adopted a cross sectional survey research design while the population of the study comprised the 16 CFS operators based in Mombasa. This study employed a designed questionnaire in collection of data. The questionnaire had both closed and open questions and was instrumental in achieving the goals of this study as explained above. Data analysis was conducted with the assistance of Statistical Package for Social Sciences (SPSS) version 23. Data was analyzed descriptively using frequencies distribution, percentages and mean. Hypotheses of the study was tested using Pearson correlation analysis to show the relationship between study variables while multiple linear regression analysis was conducted to establish the effect of the independent variables on the dependent variables. The study findings indicated that there was a positive significant effect of diversification strategy, cost leadership strategy, perceived quality of service strategy and business diversification strategy on firm performance. The study concluded that differentiation strategy, cost leadership strategy, perceived quality of service strategy and business diversification strategy are predictors of firm performance. The study recommended that managers should position their firms strategically and be competitive to enhance firm performance.
Key terms: Cost Leadership Strategy, Business Diversification, Differentiation Strategy, Strategic Positioning, Strategy
CITATION: Kerama, R., & Simba, F. (2019). Effect of strategic positioning on firm performance: A survey of container freight station operators in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 6 (2), 201 – 226.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1108
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