Nexus between Cost Leadership Strategy and Performance: Fact or Fallacy in Milk Processing Firms in Kenya

Simple item page
dc.contributor.authorKimiti, Paul G.
dc.contributor.authorMuathe, Stephen M.A.
dc.contributor.authorMurigi, Elishiba M.
dc.date.accessioned2020-10-12T06:42:42Z
dc.date.available2020-10-12T06:42:42Z
dc.date.issued2020
dc.descriptionA research article published in International Business Researchen_US
dc.description.abstractMilk 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.en_US
dc.identifier.citationKimiti, P. G., Muathe, S. M., & Murigi, E. M. (2020). Nexus between Cost Leadership Strategy and Performance: Fact or Fallacy in Milk Processing Firms in Kenya. International Business Research, 13(10).en_US
dc.identifier.issn1913-9012
dc.identifier.urihttps://www.scilit.net/article/c3402a2a6e769fc2278555c59deb95fb
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/20560
dc.language.isoenen_US
dc.publisherThe Canadian Center of Science and Educationen_US
dc.subjectfood processingen_US
dc.subjectfallacyen_US
dc.subjectCost Leadership Strategyen_US
dc.subjectMilk Processing Firmsen_US
dc.titleNexus between Cost Leadership Strategy and Performance: Fact or Fallacy in Milk Processing Firms in Kenyaen_US
dc.typeArticleen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Nexus between Cost Leadership Strategy and Performance.pdf
Size:
404.63 KB
Format:
Adobe Portable Document Format
Description:
Full text article
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
RP-Department of Business Administration