Growth Strategies and Performance of Cement Manufacturing Firms in Kenya
Loading...
Date
2023
Authors
Munyasya, Roselyne Kavata
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Firms rely on various growth strategies to maintain or improve their performance
levels. In this context, this study sought to examine the effect of growth strategies on
the performance of cement manufacturing firms in Kenya. This study was guided by
prior empirical studies and theoretical literature review comprising of theories such as
resource-based view (RBV) theory, dynamic capacity theory, balanced score card,
Ansoff matrix, and the theory of 80/20 rule. The study identified market penetration,
market development, product development, and diversification as independent
variables and firm performance as the dependent variable. In terms of their
significance, market penetration focused on increasing market share, market
development explored new markets or customer segments, product development
involved creating and launching new cement products, diversification explored
expansion into unrelated industries, and performance measured financial and nonfinancial
health and success indicators of these strategies. As such, these variables
sought to identify effective approaches for growth and financial success in Kenya's
cement manufacturing firms by addressing challenges and opportunities related to
market share expansion, new market entry, innovative product development,
diversification, and evaluating financial performance. These variables collectively
contribute to identifying effective approaches for growth and financial success in the
cement manufacturing firms in Kenya. The study used descriptive research design,
where firms operating in cement manufacturing firms in Kenya were the studied
population. Through the census sampling technique that focused on all eight cement
manufacturing firms in Kenya, the sample size included; top management, midmanagement,
and low management and it was made of 119 participants. The
researcher used descriptive and inferential analysis to evaluate the study data. On
correlation of variables, all independent variables (market penetration, market
development, product development, and diversification had positive and statistically
significant relationships with performance of cement manufacturing firms in Kenya.
The analysis of coefficients in the regression model revealed a positive and
statistically significant relationships between independent variables (market
penetration, market development, product development, and diversification) and the
dependent variable (performance) in the cement manufacturing firms in Kenya. Based
on the findings, the study infers that improving product development, diversification,
market penetration, and overall performance are potential factors that contribute to the
enhancement of cement manufacturing firms in Kenya. Therefore, study recommends
that cement manufacturing firms in Kenya focus on improving cost competitiveness,
strengthening market penetration, enhancing product development and innovation,
expanding market initiatives, and exploring diversification opportunities. These
conclusion and recommendations offer valuable insights for industry practitioners and
policymakers aiming to enhance the performance of the cement production firms in
Kenya. The findings align with previous research, further reinforcing the importance
of these growth strategies across various industries. Given that this study focused on
cement manufacturing firms alone, future research should be conducted in Kenya's
other manufacturing firms, such as telecommunication firms, banks, and insurance
firms
Description
A Research Project Submitted to the School of Business,
Economics and Torisim in Partial Fulfillment of the
Requirements for the Award of the Degree of Master of
Business Administration (Strategic Management) of
Kenyatta University
Keywords
Growth Strategies, Cement Manufacturing Firms, Kenya