EFFECT OF COST LEADERSHIP STRATEGY ON THE PERFROMANCE OF MANUFACTURING FIRMS IN KENYAEFFECT OF COST LEADERSHIP STRATEGY ON THE PERFROMANCE OF MANUFACTURING FIRMS IN KENYA
Abstract
This study sought to investigate the effect of cost leadership strategy on performance of manufacturing firms in Kenya. A survey questionnaire and an interview guide was used to collect data from 131 firms drawn from 12 key industrial subsectors located within Nairobi and its environs. The study adopted two tools of analysis namely; Pearson’s correlation to indicate positive correlation between the input and the output variable and regression analysis to explain the nature of relationship between the input and output variable. F-statistics was also used to determine the validity of the model while R-squared was used to help determine the model goodness of fit. The study adopted descriptive and explanatory research design. The findings revealed that performance of manufacturing firms are significantly influenced by cost leadership strategy. Arising from the findings, the study concludes that the managers of manufacturing firms adopt cost leadership strategy to increase their competitiveness and performance.
Full Text:
PDFReferences
Barney, J. B., & Hesterly, W. (2006). Strategic management and competitive advantage: Concepts and cases. Upper Saddle River, NJ: Pearson Prentice Hall.
Campbell-Hunt, C. (2000). What have we learned about generic competitive strategy? A
meta-analysis. Strategic Management Journal, 21(2), 127-154.
Dess G. C., & Davis P. S. (1984), Porter’s Generic Strategies as Determinants of Strategic
group Membership and Organisational Performance. Academy of Management
Journal, 27(3), 467-488.
Grant, R.M. (2005). Contemporary Strategy Analysis (5thed.). New York: Blackwell
Publishing.
Kumar, K., Subramanian, R., & Strandholm, K. (2001). Competitive strategy, environmental scanning and performance: A context specific analysis of their relationship.
International Journal of Commerce and Management, 11(1), 1–33.
Lumpkin, G. T., & Dess, G. (2006). Clarifying the Entrepreneurial Orientation Construct and
Linking it to Performance. The Academy of Management Review, 21(1), 135-172.
Lynch, R. (2003). Corporate Strategy. (3rded.), Harlow, England: Prentice Hall Financial
Times.
Marques, A., Lisboa, J., Zimmerer, T.W., & Yasin, M.M., 2000. The Effectiveness of strategies employed by dominant firms in the Portuguese crystal glass industry: An Empirical Investigation. European Business Review, 12 (1), 34-40.
Powell, T.C. (1995). Total quality management as competitive advantage: A review and empirical study. Strategic Management Journal, 16(1), 15–37.
Porter, M. (1980). Competitive Strategy: Techniques for analysing industry and competitors.
New York: The Free Press.
Porter, M. (1985). Competitive Advantage. New York: The Free Press.
Silva, G., Lisboa, J., & Yasin, M.M. (2000). Effectiveness of business strategies in the Portuguese culture: An empirical investigation. Cross cultural management: An International Journal, 7 (4), 33-40.
DOI: http://dx.doi.org/10.61426/sjbcm.v2i1.73
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.