CORPORATE STRATEGIES AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA
CORPORATE STRATEGIES AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA
Jacob Onchiri Nyansimora - Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Deya Jared - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The high competitive business environment has pressed businesses to their limits, necessitating the adoption of strategic management techniques that support strategies, choices, and actions that would improve the performance of the organization and archive profitability, success, and wealth creation. However, majority of Kenya's commercial state businesses are plagued with ineffectiveness and providing substandard products and services. Therefore, this study sought to explore the effect of corporate strategies on performance of Commercial State Corporations. The study sought to establish the effect of diversification, product development, strategic alliances and integration on performance of Commercial State Corporations in Kenya. The research specifically reviewed the institutional theory, revenue diversification theory, resource based theory and mathematical theory of games. A descriptive research design was employed. The 33 commercial state entities in Nairobi were the study's target population. The unit of observation therefore comprised of 492 management employees in the Commercial State Corporations. The study grouped the population into strata based on their management level. The study picked respondents from each strata using stratified random sampling. Self-administered questionnaires were used to collect primary data. For all quantitative variables, descriptive statistics such as frequencies, percentages, mean score, and standard deviation were computed and data presented in tables. Content analysis was used to assess the qualitative data from the open-ended questions. The multiple regression analysis was used to establish relationships between the independent and dependent variables. The study revealed that strategic alliances had the most notable and highest impact on performance of commercial state corporations in Kenya, followed by product development, and then integration while diversification had the least impact on the performance of commercial state corporations in Kenya in Kenya. The study recommended that the commercial state corporations in Kenya should partner with the major wholesale distributors in the markets and have licensees of the products in many markets. It is also recommended that the management of commercial state corporations in Kenya seek appropriate kinds of partnerships and alliances that will help enhance their own market share and growth.
