PORTER’S GENERIC COMPETITIVE STRATEGIES AND FIRM PERFORMANCE OF MOBILE TELEPHONE NETWORK SERVICE PROVIDERS IN KENYA
Abstract
Largely, companies utilizing predominant cutthroat techniques, and which participate in fitting partnerships, acquire an upper hand over their rivals. In spite of the fact that cell phone network providers in Kenya pursue different competitive techniques, profitability, branch network, market share and their subscribers, portray a fluctuating drift. The main objective of this study was to investigate the influence of porter’s generic competitive strategies and firm performance of mobile telephone network service providers in Kenya. The specific objective was to investigate the influence of differentiation strategy on performance of mobile telephone network service providers in Kenya. The study is underpinned by two theories, namely; Resource Based View Theory (RBV) and Syncretic Paradigm theory. The study used positivism research philosophy and descriptive research design methodology. The target population was all the 66 mobile telephone network service providers in Kenya. Primary data was gathered through use of structured questionnaires. Descriptive statistics, correlation and regression modeling was used to aid in data analysis. Descriptive analysis portrayed that 39.3% (24) out of 61 mobile telephone network service providers in Kenya adopted the differentiation strategy. On the other hand, inferential statistics revealed that Differentiation strategy had statistically significant influence on firm performance with β=83.2 % (P=.000). In overall, performance was positive and significant. Firms should consider the extent to which individual components of Porters’ competitive strategies have on performance. Therefore, the management of those firms should consider differentiation strategy which optimize their business sustainability level so as to have competitive edge in the market.
Key words: Differentiation Strategy, Porter’s Generic Competitive Strategies
CITATION: Musyoka, M. N., Arasa, R., & Ombuki, C. (2022). Porter’s generic competitive strategies and firm performance of mobile telephone network service providers in Kenya. The Strategic Journal of Business & Change Management,9 (4), 596 – 608
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2434
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