AN ANALYSIS OF THE EFFECT OF COMPETITIVE STRATEGIES ON PERFORMANCE: A SURVEY OF MFIS IN KENYA
DOI:
https://doi.org/10.47941/jbsm.18Keywords:
competitive strategies, micro finance institutionsAbstract
Purpose: The purpose of the study was to investigate the competitive strategies being adopted by MFIs and the effect of such strategies on firm performance
Methodology: The study adopted a descriptive survey research design. The targeted population of the study was derived from the 41 members of Association of Microfinance Institutions. A census was carried out. The questionnaire was the main data collection instrument due to its convenience and ease of use. The data will be analyzed through both descriptive statistics and regression statistics.
Results: The findings of the study indicated that MFIs used cost leadership competitive strategy, differentiation strategy, focus strategy and value disciplines. Findings indicated that there was a relationship between competitive strategies and the performance of MFIs.
Unique contribution to theory, practice and policy: It was recommended in the study that the MFIs should continue the use of the competitive strategies as they were impacting positively to their performance. The suggested area of research was to determine most preferred dominant competitive strategy being used by MFIs and also to ascertain the truth of the “being split in the middle phenomena” advocated by porter (1998).
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