Relationship Between Competitive Strategies and Organization Performance in Manufacturing Sector in Kenya

Abstract

The business environment that an organization operates in is not only dynamic and tumultuous but also continually changing, sometimes at a mind-boggling pace. Turmoil connected with changing customer behaviour, globalization, investor demands, deregulation of markets, and increased competition are some of the market characteristics, and the study aim was to determine the relationship between competitive strategies and organization performance in the manufacturing sector in Kenya. The main anchor theory was the resource-based view, and it's reinforced by configuration theory and goal-setting theory. The study adopted a descriptive research design with a target population of 135 respondents. The study adopted the census method as the sampling technique. This research study used questionnaires as the main data collection tool. Analysis of data was done using descriptive statistics. Specifically, mean, averages, and percentages. The data analysis tools were simple tabulations and presentations of the report using spreadsheets and the use of SPSS version 24.0. This study used inferential statistics to show the relationship that exists between the study variables. Data were analysed using quantitative methods, and presentation of data was in the form of tables and figures. The inferential results on the effect of cost leadership strategy on organization performance show R = 0.632 indicating a strong positive correlation and R2 = 0.399 and there was a significant effect between Cost leadership strategy and organization performance (t = 8.668, p<0.05). The inferential results on the effect of Differentiation strategy on organization performance show R = 0.575 indicating a strong positive correlation and R2 = 0.331 and there was a significant effect between Differentiation strategy and organization performance (t = 7.480, p<0.05). The study further established that among the competitive strategies included in the study, cost leadership strategy had the most influence on performance and differentiation strategy also had a significant effect on performance. The research recommends the management of Megvel Cartons Limited ; should choose to adopt a cost leadership strategy and should put more emphasis on gaining competitive advantage by having the lowest cost in the sector.