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).
Downloads
References
AMFI (2009). Members of the association of microfinance Institutions. Retrieved from www.amfi.co.ke.members.html
Ansoff, I. (1988). Corporate strategy. (2nded.). McGraw - Hill. New York.
ATC consortium (2009). MFI upgrading initiative. Retrieved from: http://mfi-upgrading-initiative.org/index.html
Berkowitz, E. N., Kerin, A. R., Hartley, S.W., & Rudelins, W. (1994). Marketing, (4thed.), Irwin publishers.
CBK (2009). Regulation and supervision of microfinance institutions in Kenya. CBK Bulletins. Government Press
Churchill, G. A. (1991). Marketing research: Methodological foundation, (5thed.). The Dryden Press, New York.
Coulter, M (2002). Strategic management in action, (2nded.), Prentice Hall. New Delhi.
Davidson, W., & Sweeny, D. (1984). .Retail marketing .John Wiley and sons, New York.
Gavetti, G., & Levinthal, D. (2000). Looking forward and looking backward: Cognitive and experiential search. Administrative Science Quarterly, 45, 113-37.
Guest, D. E., Michie, J., Conway, N., & Sheehan, M. (2003). Human resource management and corporate performance in the UK. British Journal of Industrial Relations, 41, 291-314.
Hambrick and Fredrickson, (2001). The satisficing principle in capability learning. Strategic Management Journal, 21 (2000), 981-996.
Hamel, G., & Prahalad, C. K. (2000). Competing for the future (Boston: Harvard Business School Press).
Julien, et al. (2003). Competitive strategy and performance of exporting SMEs. The Dryden Press, New York.
Kaplan, R.S. & Norton, D.P. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review, 70(1), 71-79.
Kay, J. (1999). Resource based strategy. Financial Times (September 27, 1999).
Kotler, P. (1999). Marketing Management Millennium Edition, Prentice Hall, New Delhi.
Miller (1992). Rethinking corporate strategy,(2nded.). McGraw - Hill, New York.
Newman, W. H., Logan, J. P., & Hergarty, W. H. (1989). Strategy: Multilevel, integrated approach, South Western Publishing Company.
Oketch(2006). The role of management ability and competence in the success of a chosen competitive strategy. Unpublished.
Omino (2007). Regulation and supervision of MFIs in Kenya. CBK Publication. GOK
Parnell, M., & Koseoglu, P. (2010). Compettive strategy and performance relationship. International Journal of management and enterprise, 8(1).
Pearce, J., & Robinson, R. (2000). Strategic management: Formulation, implementation and control, (7thed.), McGraw-Hill.
Porter, M. E. (1998). Competitive strategy; Techniques for analyzing industries and competitors, The Free Press, New York.
Porter, M. E. (2002). Porters Generic Strategies: Retrieved on from http://ww.qiuckmba.com/strategy/generic.shtlm, 6th July 2003.
Thompson, A. Strickland, J. (1998) .Crafting and implementing strategy, texts and readings, (10thed.), McGraw - Hill, New York.
Treacy & Wiersema, F. (1993). Value disciplines. Lite press. London
Wanjira, S. (2005). Factors affecting the success of competitive strategies in Kenyan hospitality industry. Unpublished.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
