INFLUENCE OF STRATEGIC ORIENTATION ON FIRM PERFORMANCE OF RETAIL SUPERMARKETS IN KENYA
Amina Godana Diba - Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Jane Queen Omwenga - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The main objective of this study was to investigate the influence of strategic orientation on firm performance at Tuskys Supermarkets Limited. The study was guided by the following specific objectives: to assess the influence of Entrepreneurial Orientation dimension on firm performance at Tuskys Supermarkets Limited; determine the influence of Market Orientation dimension on firm performance and establish the influence of Competitor Orientation on firm performance. The study was based on the Contingency Theory of organizations, Resource-Based Theory and Dynamic Capability Theory. The study used the descriptive research design. The target population was 543 staff from 12 Tuskys Supermarket Limited branches. The study used the stratified random sampling technique. The strata for this population were the 12 branches of Tuskys Supermarket Limited in Nairobi City County. The sample size for the study was established as 230 staff from Tuskys Supermarket Limited. A structured questionnaire was designed to collect data from respondents. The researcher used SPSS to analyze the data. Descriptive statistics correlation analysis using Pearson (r) was done. Multiple regression analysis was performed to determine the effects of the predictor variables Competitor Orientation (CO), Entrepreneurial Orientation (EO) and Market Orientation (MO) on response variable (FO) Firm Performance). R-square was determined and found to be 0.900. This implies that for any change by one unit in performance of Tuskys Supermarket, market orientation, competitor orientation, and entrepreneurial orientation are explaining 90% of such change. Further, p-Value was found to be 0.000<0.05 at 5% significance level implying that there was a statistically significant difference between mean of firm performance when aspects of strategic orientation was present and when absent. The researcher therefore recommends that supermarkets need to be more innovative in reaching out to their customers and in product development. This is because it will create a new market need for their products and services and hence more competitive in the retail store. In addition, supermarkets should endeavor to focus on identifying customers express needs that guide in developing products and services. This will give the firms opportunities to flourish compared to their competitors.
