Maina, James RugamiMuchemi, AnneMaina, Samuel2025-10-032025-10-032025-06Maina, J. R., Muchemi, A., & Maina, S. (2025). Customer Value Proposition Innovation Strategy and Performance of Manufacturing Firms Listed on Nairobi Securities Exchange (NSE) in Kenya. Journal of Strategic Management, 9(2), 12-27.https://doi.org/10.53819/81018102t5366https://ir-library.ku.ac.ke/handle/123456789/31519ArticleDespite manufacturing firms being vital to national economic infrastructure through employment and revenue generation, most manufacturing firms in Kenya have recently experienced declining performance marked by low profit margins and stagnating market share due to increased competition from imports. Thus, this study investigated the effect of customer value proposition innovation strategy on performance of manufacturing firms listed on the Nairobi Securities Exchange in Kenya. The study was anchored on Porter's value chain model. A positivist research paradigm and an explanatory research design were adopted. The target population consisted of 95 functional heads of departments drawn from 19 listed manufacturing firms through a census approach. The data collection instrument was a semi-structured questionnaire with closed and open-ended questions. A pilot study was conducted to test the reliability of the research instrument, achieving Cronbach alpha indices of 0.964 for customer value proposition innovation strategy and 0.892 for firm performance, both well above the recommended threshold of 0.7. These reliability coefficients indicated strong internal consistency of the measurement scales, and the instrument was also subjected to face, construct, and content validity testing. The response rate was 88%. Quantitative data were analyzed using descriptive and inferential statistics. The study found that customer value proposition innovation strategy significantly and positively affected firm performance (β=0.659, t=7.510, p=0.000), explaining 40% of the variance in performance. The study conclude that managers of manufacturing firms should prioritize customer value proposition innovation strategy to improve performance. Manufacturing firms should invest in advanced CRM technologies, establish dedicated account managers for key customers, and implement effective communication channels to enhance customer satisfaction and loyalty. Continuous feedback collection and refinement of value propositions should remain at the forefront of customer-centric strategies to ensure alignment with evolving preferences.en