Generic Strategies and the Competitive Advantage of the Manufacturing Firms in Kenya

Abstract

Purpose: The study aimed to examine the effect of generic strategies on the competitive advantage of the manufacturing firms in Nairobi County, Kenya. Addressing a critical gap by providing specific evidence.

Methodology: The study was grounded in the Resource-Based View of the firm and employed an explanatory research design. The target population included 840 managers of the manufacturing firms operating in Nairobi County, Kenya. A stratified random sampling technique was used to select the respondents. Primary data were collected through structured questionnaires. Data analysis involved descriptive statistics (means, standard deviations, frequencies, percentages) and inferential statistics, including Pearson correlation and multiple regression analysis.

Findings: The regression analysis revealed that generic strategies had a positive significant effect on competitive advantage of the firms with all the three strategies being statistically significant. Cost leadership on competitive advantage (P=0.000, Β=0.478) Differentiation strategy on competitive advantage (P=0.000, Β=0.472) and focus strategy on competitive advantage (P=0.000, Β=0.396).

Conclusion: The study concluded that generic strategies are critical for enhancing competitive advantage in the Kenyan manufacturing firms in Nairobi, County.

Value: This study provides a meaningful recommendation to policy makers when it comes to decision making and ensuring fair competition. It also helps various practitioners when it comes to decision making and provides a good base for further theoretical foundations and developments by other scholars.