Effect of marketing capabilities and distribution strategy on performance of mobile service provider. intermediary organizations in Nairobi county, Kenya
Karanja, Stanley Chege
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The purpose of this study was to investigate the effect of marketing capabilities, distribution strategy, and contextual factors on the performance of mobile service providers' intermediary organizations. The mobile service providers sector is a major contributor -to the country's economic growth and achievement of development goals and vision 2030. Nevertheless, the performance of mobile service providers' intermediary organisations appears to have stagnated and is even on a declining trend in some cases. The study was guided by the following specific objectives: .establishing the effect of marketing capabilities on performance of mobile service providers intermediary organisations; investigating the effect of distribution strategy on performance of mobile service providers intermediary organisations; determining the composite effect of marketing capabilities and distribution strategy on performance of mobile service providers intermediary organisations; and .determining the moderating effect of contextual factors on the relationship between the composite effect of marketing capabilities and distribution strategy and performance of mobile service providers intermediary organisations in Nairobi County, Kenya. This study employed a descripto-explanatory crosssectional survey research design. The study collected primary data from 219 respondents drawn [rom a target population of 397 selected using stratified and simple random sampling procedures. A semi-structured questionnaire was used to collect data. The data was analysed using descriptive statistics in the form of frequencies and one sample t-tests. Simple linear regression, multiple linear regression and hierarchical regression in statistical package for social scientists (SPSS) were used for inferential statistical analysis. Content analysis was used for qualitative data analysis. This study established that marketing capabilities and choice of distribution strategy contributed significantly to the mobile service providers Intermediary organisations' performance. The study also revealed that the effect of marketing capabilities and distribution strategy on the performance of mobile service providers Intermediary organisations was influenced by specific contextual factors including infrastructure, economic factors, and socio- cultural factors. The study recommends mobile service providers intermediary organization sales managers need to lobby management to invest in training and appropriate performance compensation plan for its sales people as well as the Information, Communication and Technology system that will enable efficient routing of the customers, where daily actual/targets and retailer information is availed, enhancing proper monitoring and evaluation of the sales team and their activities which will lead to improved performance of the mobile service providers intermediary organisation. The mobile service providers intermediary organisation management through its dealers association, Kenya Private Sector Alliance, National Chamber of Commerce and Industry need to lobby the government to address issues related to infrastructure, economic and socio-cultural factors to enable a conducive investment climate that will enhance performance of mobile service providers intermediary organisations.