Ngugi, RahabMuchemi, AnnMaina, Samuel2023-06-132023-06-132022Ngugi Rahab et al. “Niche Market Penetration Strategy and Performance of Selected Telecommunication Application Service Firms" International Journal of Managerial Studies and Research (IJMSR), vol 10, no. 2, 2022, pp. 8-17. doi: https://doi.org/10.20431/2349-0349.10020022349-0349http://ir-library.ku.ac.ke/handle/123456789/25802research articleTelecommunication is critical for economic growth in any given country. As the sector continues to evolve, firm are experiencing performance challenges due to competition and changing customer demands, hence firms should consider adopting niche market penetration strategy. This study sought to determine the effect of niche market penetration strategy on performance of selected telecommunication application service firms in Kenya. The study constructs were informed by the goal setting theory and game theory. The study adopted descriptive and explanatory research design. The population targeted was 21 selected telecommunication application service firms. Primary data was collected using questionnaires while the secondary data was collected from the Communications (CA) Authority. Descriptive and inferential statistics were used to analyze quantitative data. Hypotheses testing was conducted at 5% level of significance using P-value to assess significance. The findings of the study revealed that niche market penetration strategy has a positive and significant effect on performance of selected application service firms. Therefore firms should consider adopting niche market penetration strategy to improve performance. Further to this, firms should engage in activities that provide knowledge on customer needs and also relationship management.enNiche Market Penetration StrategyFirm PerformanceTelecommunication Application Service FirmsArticle