Effectiveness of Strategic Drivers on Performance of Selected Chanelled Product ICT Firms in Nairobi, Kenya

Abstract

In the world of competition, change of consumer needs and wants, influence of technology and globalization firms operating in multiple sectors in developed and developing countries are embarking on embracing strategic drives to enhance their performance. Despite variation in product categories, ICT firms dealing with channeled products and more specifically in Kenya are experiencing deteriorating performance though limited studies have been conducted to establish the link between strategic drivers and performance of channeled product ICT firm thus formed the basis of this study. The study sought to establish the effectiveness of strategic drivers on performance of selected channeled product ICT firms in Nairobi, Kenya. The specific objectives that study sought to address were to determine the effect of firm strategies, firm capabilities, market penetration and retailer-dealer partnerships on performance of selected channeled product ICT firms in Nairobi, Kenya. The study was anchored on resource based theory and supported by dynamic capability and relationship marketing theories. The study adopted cross-section research design to establish the effectiveness of strategic drivers on performance of channeled product ICT firms in Nairobi, Kenya. The target population of the study comprised of 12 distribution companies dealing in channeled ICT products in Nairobi. Out of the 12 firms, a total population of 309 employees was selected. Using Yamane (1967) formula, a sample size of 174 was arrived. The respondents of the study included. Primary data was collected using structured questionnaires with open and closed ended questions. Secondary data was collected by the review sales records and financial statements, Validity of the instrument was tested using strategic management consultants and lecturers at St. Paul University in the department of Business Management Reliability of the instrument will be tested using Cronbach Alpha formula. Quantitative data was analyzed using descriptive statistics and inferential statistics such as multiple regression method. Multiple regression was conducted at 95% confidence level and 5% significance level. The analyzed data was descriptively presented using means scores, standard deviation and percentages. The study revealed there exist a significant positive relationship between firm strategies, firm capabilities, market penetration, retailer-dealer partnership and performance of selected channeled product ICT firms in Nairobi, Kenya. The study concludes that strategic drivers such as logistics, marketing and human resource strategies are crucial for organizational competitiveness if effectively embraced by top leadership. The study recommends that unless ICT firms dealing with channeled ICT products in Kenya recognize the essences of pricing decisions and product values, achieving competitive advantage would an uphill task. The findings of the study will help the management of ICT firms to develop appropriate strategic drives to enhance their competitiveness. Policy makers such as the government and related agencies in the ICT sector would use the information to develop policies that will regulate the ICT product sector and import of products. Further, academicians and scholars would use the information to enrich existing literature and identify research gaps to be addressed