GENERIC COMPETITIVE STRATEGIES AND PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA
Abstract
This research examined the influence of the generic competitive strategies on performance of food and beverage manufacturing firms in Nairobi City County, Kenya. Specifically, the study examined the influence of cost leadership strategy and differentiation strategy on performance of food and beverage manufacturing firms in Nairobi City County, Kenya. The study was guided by the resource-based theory, dynamic capability theory and resource-advantage theory of competition. The study employed the cross-sectional survey research design to test noncausal relationship between the study variables without the researcher controlling any of them. The proportionate stratified random sampling technique was used to select a sample size of 152 food and beverage manufacturing firms from a target population of 246 food and beverage manufacturing firms in Nairobi City County, Kenya. The study utilized a self-administered structured survey questionnaire to collect primary data. A cross-sectional survey approach was used. The study utilized the drop and pick method for the distribution of the survey questionnaire. With the help of the 3 research assistants, the researcher hand delivered the survey questionnaire to the managing directors of the random sample of 152 food and beverage manufacturing firms in Nairobi City County, Kenya. The collected data was coded, edited and entered into the Statistical Package for Social Sciences (SPSS) version 26 to create a data sheet that was used for statistical analysis. Data analysis utilized the descriptive and inferential statistics. The correlation results indicated that cost leadership strategy and differentiation strategy had positive and significant relationship with the performance of food and beverage manufacturing firms in Nairobi City County, Kenya. The regression results indicated that cost leadership strategy and differentiation strategy had positive and significant influence on the performance of food and beverage manufacturing firms in Nairobi City County, Kenya. The study recommends that managers should consider a holistic reassessment and implementation of the generic competitive strategies to foster the performance of the food and beverage manufacturing firms. The policymakers should consider initiating a review of the existing policies to motivate the managers to consider a holistic reassessment and implementation of the generic competitive strategies to foster the performance of the food and beverage manufacturing firms. Future research should examine the influence of generic competitive strategies on firm performance with environmental turbulence as a moderator in other sectors or contexts.
Key Words: Generic Competitive Strategies, Differentiation, Cost Leadership, Firm Performance, Kenya
CITATION: Balala, T. B., & Kising'u, T. M. (2024). Generic Competitive Strategies and Performance of Food and Beverage Manufacturing Firms in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 11 (4), 578 – 599. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3106
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3106
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