Browsing by Author "Murigi, Elishiba M."

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    Cost Leadership Strategy, Competitive Advantage, and Performance: A Cross-Sectional Study in the Context of Milk Processing Firms in Kenya
    (GIAP Journals, 2020) Kimiti, Paul G.; Muathe, Stephen M. A.; Murigi, Elishiba M.
    Purpose of the study: Cost leadership strategy is driven by economies of scale, economies of scope, and operational efficiency is a remedy to a performance where firms are facing high costs. This study sought to investigate the influence of cost leadership strategy on the performance of milk processing firms in Kenya through the lens of competitive advantage as a mediator. Methodology: The study adopted descriptive and explanatory non-experimental research designs. It was a census of all 29 milk processing firms registered with Kenya Dairy Board as of June 2019. Sampling was done using proportionate stratified random sampling technique and data was collected using self-administered semi-structured questionnaires. The analysis was done using means, standard deviations, and regression. Main Findings: The findings showed that a cost leadership strategy had a positive and significant effect on the performance of milk processing firms in Kenya with a competitive advantage partially mediating the relationship. The constituent measures of cost leadership strategy namely economies of scale, economies of scope, and operational efficiency accounted for 40.1% of the variation in firm performance. Applications of this study: This study provides suggestions for firms to manage costs and therefore improve performance. This is by increasing the size of operations, expanding into related business areas, and improving operational processes. Novelty/originality of this study: The study examines the influence of cost leadership strategy in a new context of milk processing firms in Kenya. It also incorporates a competitive advantage as a significant variable affecting the relationship between costs and performance.
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    Gender of Respondents and Performance of Functional Areas of Milk Processing Firms in Kenya
    (International Journal of Economics, Commerce & Management, 2020) Kimiti, Paul G.; Muathe, Stephen M.A.; Murigi, Elishiba M.
    Milk processing firms have significant economic and nutritional contribution to the economy. The industry’s performance is however impended by high costs resulting in low profitability, declining output as well collapse and retarded growth of some firms. Firms in the industry have resorted to cost leadership strategy to address performance challenges through adoption of economies of scale, economies of scope and operational efficiency. Studies done in other sectors suggest a correlation between cost leadership strategy and firm performance. Resource Based View theory posits that decisions on strategic orientation are made by the firm’s human resources of which gender is an important aspect. This study therefore was an investigation of whether gender is associated with the functional areas involved in making decisions on costs among milk processing firms in Kenya. Self-administered questionnaires were used to collect data from the firms and analysis done using contingency tables and Chi-square test. The study concluded that males were a majority in most of the functional areas but the association was not statistically significant. The study thus recommends that milk processing firms exercise liberty in employing males or females subject to other factors like legislation on workforce gender distribution.
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    Nexus between Cost Leadership Strategy and Performance: Fact or Fallacy in Milk Processing Firms in Kenya
    (The Canadian Center of Science and Education, 2020) Kimiti, Paul G.; Muathe, Stephen M.A.; Murigi, Elishiba M.
    Milk processing firms as a constituent of the food processing sector play a crucial function both economically and nutritionally. However, performance in the industry continues to be impended by high costs leading to low profitability margins, decline in output and collapse of some firms while others show stunted growth. It is hypothesized that this situation can be remedied by pursuing cost leadership strategy through economies of scale, economies of scope and operational efficiency. Extant literature however is scanty on how this strategy is employed by milk processing firms in Kenya with studies done failing to focus on how the firms manage costs as a driver for better performance. This has made it difficult to determine whether the hypothesized effect is a fact or fallacy. This study thus was an investigation of the effect of cost leadership strategy on performance of milk processing firms in Kenya. It was anchored on the balanced scorecard model complemented by the resource based view and capability based view theories. The study empirically examined the relationship using data from milk processing firms in Kenya obtained from a sample of 168 key respondents. The findings showed that cost leadership strategy had a positive and significant effect on performance of milk processing firms in Kenya. The study recommends that milk processors improve their performance by cutting costs through measures to increase their scale of operations, expand into related business areas and improve operational processes. The government and other the regulatory bodies should implement corresponding supportive policies and reforms.