EFFECT OF DIFFERENTIATION STRATEGY ON PERFORMANCE OF SELECTED PRIVATE LEARNING INSTITUTIONS IN KENYA
Abstract
The business environment has witnessed several changes that have compelled managers to choose and adopt responsive strategies in order to remain relevant in the market. Strategic choice is the third logical element of the strategy formulation process. The broad objective of the study was to determine the effect of differentiation strategy on performance of selected private learning institutions in Kenya. The study was anchored by resource-based view (RBV),. Explanatory research design was used and the target population was 98 selected private learning institutions in Kenya. The respondents were 1 strategic Manager and 1 supervisor from marketing department respectively which was a total of 196 respondents. The study used primary data, collected through questionnaires administered through drop and pick later method. The data collected was analyzed using descriptive and inferential statistics.The study findings revealed that differentiation strategy had a statistically significant positive effect on performance, as evidenced by the beta coefficients (differentiation strategy: β1=0.284, p <0.05.The findings revealed that there was a statistically significant moderating effect of human capital on relationship between differentiation strategy, on performance with β1=0.208, p <0.05; The study concluded that differentiation strategy affect performance. Based on the findings, the study recommends that government develop policies that can improve performance of learning institutions in Kenya. Future research may be carried out on the effective implementation of competitive strategies on organization performance
Key words: Differentiation Strategy and Performance
CITATION: Matata F., Bonuke, R.,& Kibet, Y. (2024). Effect of differentiation strategy on performance of selected private learning institutions in Kenya. The Strategic Journal of Business & Change Management, 11 (2), 1546 – 1557. http://dx.doi.org/10.61426/sjbcm.v11i2.2998
Full Text:
PDFReferences
Achoki. N. Peter (2013). Competitive strategies adopted by bank of India, Kenya. Un published MBA project School of Business, University of Nairobi.
Akingbade, W. A. (2014). Competitive strategies and improved performance of selected Nigeria telecommunication companies. Journal of Entrepreneurship, Management and Innovation, 10(4), 143-168
Badwan, J. J., Al Shobaki, M. J., Naser, S. S. A., & Amuna, Y. M. A. (2017). Adopting technology for customer relationship management in higher educational institutions. International Journal of Engineering and Information Systems (IJEAIS), 1(1), 20-28.
Barney, J. B. (1997). Gaining and sustaining competitive advantage. Addison-Wesley: Reading, MA.
Barney, J. B. (1997). Gaining and sustaining competitive advantage. Addison-Wesley: Reading, MA.
Barney, J.B. (1991).Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
Baron, R.M., & Kenny, D.A. (1986). The moderator-mediator variable distinction in Social Psychological research: Conceptual, Strategic and Statistical Considerations. Journal of Personality and Social Psychology, 51, 1173-1182.
Bertozzi, F. Chaudhry, M.A. & Gul, F.A. (2017). Porter’s five Generic strategies: A case
study of the Hospitality Industry. International Journal for Research in Mechanical and Civil Engineering, 3(2), 9-23.
Dani, A. (2017). “Four major types of competitive strategies” available from
http://yourbusiness.azcentral.com/four-major-types-competitive-strategies-6166.html
Davidow, S. and Uttal, M. (2005). Strategy and restructure at the United Church of Christ. Journal of Macro marketing, pp. 466 -492
Donaldson, L. (2001). The contingency theory of organizations. Thousand Oaks, CA: Sage Publications.
Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of The Corporation: Concepts, Evidence, and Implications. Academy of Management Review, 20 1, 65-91
E. & McVea, J. (2014). A Stakeholder Approach to Strategic Management: Social Science Research Network electronic Paper Collection. http://papers.ssrn.com/paper.taf.abstractid=2635111
Eide, S. (2018). Private colleges in peril: Financial pressures and declining enrollment
Fathali, A. (2016). Examining the Impact of Competitive Strategies on Corporate
Innovation: An Empirical Study in the Automobile Industry. International Journal of
Asian Social Science, 6(2), 135-145.
Ferrero, I., Hoffman, W. M., & Mcnulty, R. E. (2014). Must Milton Friedman embrace stakeholder theory? Business and Society Review, 119(1), 37-59.
Gathoga, H. (2011). Competitive strategies by commercial banks in Kenya.
Gathoga, H. (2011). Competitive strategies by commercial banks in Kenya.
Githae, D. (2004). A Survey of the extent of entrepreneurship practice in public sector commercial organizations in Kenya (Unpublished master’s project). University of Nairobi, Kenya.
Grant, R.M. (2013). Contemporary Strategy Analysis, 5th ed., Blackwell Publishing, London, 52, 135-50
Hough, J., Thompson, A.A. & Gamble, J. (2011). Crafting and Executing Strategy. New
York: McGraw Hill Higher Education
Issa, A., Kabalan, H., & El-ammare, S. (2018). Sustainable Business Development in the Vision of Europe 2020 Strategies and Growth of Urban Economies. Journal of Business and Social Review in Emerging Economies, 4(2), 117-138.
Kimando, L. N., Njogu, G. W. & Sakwa, M. (2012). An Analysis of the competitive strategies employed by Private Universities in Kenya: A case Study of private universities in Nairobi. Management Science and Engineering, 6(2), 55-70
Kimando, L. N., Njogu, G. W. & Sakwa, M. (2012). An Analysis of the competitive strategies employed by Private Universities in Kenya: A case Study of private universities in Nairobi. Management Science and Engineering, 6(2), 55-70
Kinoko, J. M. (2017). Competitive strategies adopted by Primary Lubricant marketers in
Kenya. Unpublished MBA research Project, University of Nairobi.
Kinuu, D. (2014). Top Management Team Psychological Characteristics, Institutional Environment, Team Process and Performance of Companies Listed in Nairobi Securities Exchange. Unpublished PhD. Thesis. University of Nairobi.
Kyengo, J. W., Ombui, K. & Iravo, M. A. (2016). Influence of competitive strategies on the performance of telecommunication companies in Kenya. International Academic Journal of Human Resource and Business Administration, 2(1), 1-16
Mintzberg H., Alstrand B., & Lampel J. (2016). Strategy Safari: A Guided Tour through Wilds of Strategic Management. The Free Place New York, NY 10020.
Mkalama, R.N. (2014). Top Management Demographics, Strategic Decision Making, Macro- environment and Performance of Kenyan State Corporations. Unpublished PhD. Thesis, University of Nairobi
Mutegi, M. J. (2013). Competitive strategies adopted by supermarkets in Nairobi, Kenya. Un published MBA project School of Business, University of Nairobi
Mwangi, E.W., & Ombui, K. (2013). Effects of Competitive Strategies on the Performance
of Mission Hospitals in Kenya: A Case of Kijabe Mission Hospital. International
Journal of Science and Research, 2(11), 14-19.
Njoro, W. W. (2017). Competitive strategies influencing growth of selected public universities in Kenya. (Unpublished master’s thesis). Kenyatta University, Nairobi, Kenya.
Okwumba, E. O., & Onyiaji, J. (2019). Awareness and use of strategic communication in managing herdsmen-farmers crises in selected media houses in Nigeria. International Journal of Communication: An Interdisciplinary Journal of Communication Studies, 23(2).
Porter, M. E. (2018). Competitive Advantage: Creating and Sustaining Superior Performance. New York, NY: Free Press.
Porter, M. E. (2018). The Five Competitive Forces that shape Strategy. Harvard Business Review, 4(2), 79-93
Prajogo, D. I. (2009). The relationship between competitive strategies and product quality. Industrial Management and Data Systems, 107(1), 69-83.
Pulaj, E., Kume, V. & Cipi, A. (2015). The impact of generic competitive strategies on
organizational performance: The evidence from the Albanian context. European
Scientific Journal, 11(28), 273-284.
Pulaj, E., Kume, V. & Cipi, A. (2015). The impact of generic competitive strategies on
organizational performance: The evidence from the Albanian context. European
Scientific Journal, 11(28), 273-284.
Shields, D. L., & Bredemeier, B. L. (2018). True competition. Human Kinetics. Unpublished master’s Project). University of Nairobi, Nairobi, Kenya.
Wernerfelt, B. (2004). Organizational languages. Journal of Economics & Management Strategy, 13(3), 461-472.hittington, R. (2006). Completing the practice turn in strategy research. Organization studies, 27(5), 613-634.
Whittington R, Johnson G, Scholes K (2005) Exploring Corporate Strategy: Text & Cases (7th ed.). Essex, England: Pearson Education Limited.
Young, M. (2009). "Market structure analysis: a foundation for developing and assessing bank strategy", International Journal of Bank Marketing, Vol. 17 No.1, pp.20-5.
DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2998
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.