EFFECT OF GROWTH STRATEGIES ON ORGANIZATIONAL PERFORMANCE: A SURVEY OF COMMERCIAL PRINTING FIRMS IN NAIROBI, KENYA
Abstract
The commercial printing industry keeps changing and is faced with a million challenges that has made the trade difficult for the people in this industry in Kenya, in East Africa and also in various parts of the world. As a result, it is important for the commercial printing firms to analyze the various growth strategies they can use considering the trends and the fierce competition they are faced with so that they are able to cope and improve their performance. The main objective of this study was to establish the effects of growth strategies on organizational performance of commercial printing firms in Nairobi, Kenya. The target population of the study was 249 commercial printing companies in Nairobi that are registered under the Registrar of Companies section as depicted by (Kenya Department of Registrar General, 2015). The study adopted a descriptive research design and used random sampling technique to select 25 commercial printing companies and stratified sampling technique to select 75 managers from the selected 25 commercial printing companies in Nairobi, Kenya. Data was collected from questionnaires and data collection sheet and analyzed using both descriptive and inferential statistics. The study found that market development, market penetration, product development and diversification strategies had a positive significant relationship with organizational performance of commercial printing firms in Nairobi, Kenya except for product development strategy that had an insignificant positive effect on profit growth of such firms. The study recommended that managers and other high level stakeholders of commercial printing firms should apply the range of growth strategies highlighted in improving the firms’ organizational performance. The study also recommended that commercial printing firms should invest more on research of current market trends, continuous skill development for employees and infrastructure that support new technologies to ensure effective and successful implementations of the mentioned growth strategies.
Key words: Growth strategy, market development strategy, market penetration strategy, product development strategy, diversification strategy, organizational performance
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.892
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