COMPETITIVE DYNAMICS AND ORGANIZATIONAL PERFORMANCE OF METAL AND ALLIED MANUFACTURING INDUSTRIES IN MOMBASA COUNTY, KENYA
Abstract
This study investigated the influence of competitive dynamics on organizational performance of metal and allied manufacturing industries in Mombasa County, Kenya. The specific objectives were to examine the influence of product differentiation strategy, cost leadership strategy, focus strategy and strategic outsourcing on organizational performance of metal and allied manufacturing industries in Mombasa County, Kenya. The research was informed by Resource Based View Theory, Porter’s Five Forces Theory, Dynamic Capability Theory, and Agency Theory. The study utilized a descriptive research design. A total of 210 respondents were observed. The next step was the use of simple random sampling to choose 138 respondents, or 65.7% of the total population. Semi-structured questionnaires were used to collect data, and a sample of twenty respondents was used for testing. The questionnaires were assessed for construct, content, and criteria validity to determine their validity. The questionnaire's reliability was assessed using Cronbach's alpha coefficient. To find connections between the variables we used inferential statistics like multiple regression analysis and correlation analysis. The research shows that using a differentiation strategy can help companies stand out from competitors by offering special and creative products or services. The study indicated that the adoption of product differentiation strategy, cost leadership strategy, focus strategy, and strategic outsourcing positively impacted the organizational performance of metal and allied manufacturing industries in Mombasa County, Kenya. The study recommends that metal and allied manufacturing industries should focus on creating unique and innovative products so as to stand out in a crowded marketplace and capture the attention of customers. The companies in the metal and allied manufacturing industries can improve their profit margins by focusing on reducing production costs.
Key Words: Product Differentiation, Cost Leadership , Focus Strategy, Strategic Outsourcing
CITATION: Musanya, E., & Wainaina, L. (2024). Competitive dynamics and organizational performance of metal and allied manufacturing industries in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 11 (3), 455 – 470. http://dx.doi.org/10.61426/sjbcm.v11i3.3031
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i3.3031
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