Abstract:
The study sought to evaluate the relationship between Porter’s generic competitive
strategies and organizational performance among agro food processing firms in Nakuru
and Kericho Counties in Kenya. Specific objectives were;- to determine the relationship
between utilization of focus strategy and organizational performance, to determine the
relationship between the utilization of cost leadership strategy and organizational
performance , to determine the relationship between differentiation strategy and
organizational performance and to determine the combined effect of Porter's generic
competitive strategies focus, differentiation and cost leadership on organizational
performance. The target population was agro food processing firms in Nakuru and Kericho
Counties. A cross sectional survey was conducted involving 53 large and medium agrofood processing firms. Primary data was collected using structured questionnaires
administered to a management staff in each of the agro food-processing firm. Data was
analyzed with help of the Statistical Package for Social Sciences (SPSS) version 17.0. Both
descriptive statistics and correlation analysis were used to analyze data. The findings from
the study indicated that focus and differentiation strategies significantly influenced
organizational performance in terms of growth in market share; cost leadership strategy did
not significantly influence organizational performance among agro- food processing firms
in the study area. Cost leadership, differentiation and focus strategies were found not to
significantly influence organisational performance individually, however the combined
Porter's generic competitive strategies were found to significantly influence organisational
performance.Consequently, this study made the following recommendations: the
managements in the agro-food processing should strengthen utilization of all the Porter’s
competitive strategies in order to realize meaningful performance among agro- food
processing firms; increase the level of research and development in production; diversify
their products as well as undertake regular product re-launch or re-design and promotion
and effectively implement the Porter’s competitive strategies in order to realize increased
levels of organizational performance especially in employee productivity, revenue per
employee and profitability margins.
