Strategic Drivers for Sustainable Competitiveness in the Alcohol Manufacturing Firms in Kenya: A Case of East African Breweries Limited
DOI:
https://doi.org/10.47941/jbsm.2252Keywords:
Marketing Strategies, Resource Management Strategies, Cost Management Strategies Drivers and Strategic Sustainable CompetitivenessAbstract
Purpose: The purpose of the study was to examine the drivers of strategic sustainable competitiveness in alcoholic beverage manufacturing, specifically focusing on East African Breweries Limited (EABL). The specific drivers considered in the study comprised of marketing strategies, resource management strategies and cost management strategies.
Methodology: The study employed a descriptive correlational design, targeting a population of 320 senior and middle-level managers. In addition, the study adopted stratified random sampling to select 178 participants. Data collection was based on a structured questionnaire, and descriptive and inferential analysis was conducted via SPSS Version 25.0. The analysis, expressed as frequencies, percentages, means, and standard deviations, was presented in the form of tables and figures.
Findings: Regarding marketing strategies, the correlation analysis revealed a significant positive moderate correlation (r = .533, p = .000) between marketing strategies and strategic sustainable competitiveness, explaining approximately 28.5% of the variance. The ANOVA was statistically significant, with an F-statistic of 55.673 and a p-value of 0.000, indicating that marketing strategies are significant predictors of strategic sustainable competitiveness. Furthermore, regression coefficients indicated that for every unit increase in marketing strategies, there is a corresponding increase of 0.535 units in strategic sustainable competitiveness. Concerning resource management strategies, the study found a significant positive correlation (r = .595, p = .000) between resource management strategies and strategic sustainable competitiveness, explaining approximately 35.4% of the variance. On cost management strategies, the study also found a significant positive correlation (r = .685, p =.000) between cost management strategies and strategic sustainable competitiveness, explaining approximately 46.9% of the variance.
Unique Contribution to Theory, Practice and Policy: The study recommends increasing investments in events and activations, such as themed festivals or exclusive product launches, to boost brand visibility. It further recommends investing in cutting-edge brewing technology, such as automated fermentation systems, to maintain precise and consistent brews. It is also necessary to improve the identification and elimination of inefficiencies in brewing processes through regular audits and adopting best practices. Finally, further research should investigate the integration of sustainability practices into marketing, cost management, and resource management strategies within the brewing industry.
Downloads
References
Abinav, S. (2023). Impact of marketing strategy on business sales and financial performance. International Journal of Creative Research Thoughts (IJCRT), 11(4), 48-64. https://doi.org/10.5176/2320-2882.ijcrt2304831Moreno-Gómez, J., Londoño, J. C., & Zapata-Upegui, L. F. (2023). Marketing strategy and competitiveness: Evidence from Colombian SMEs. aTEC Empresarial, 17(2), 48-64. https://doi.org/10.18845/te.v17i2.6701
Adam, N. A., & Alarifi, G. (2021). Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support. Journal of Innovation and Entrepreneurship, 10(1), 15-23. https://doi.org/10.1186/s13731-021-00156-6
Agbo, M. U. (2020). Effects of Benchmarking on Performance of Manufacturing Firms: A Study of Nigerian Breweries Plc. International Journal of Business & Law Research, 8(2), 13-20.
Akinola, G. O., & Odesola, O. T. (2018). Information and Communications Technology and Inventory Management amongst Breweries in Nigeria. Journal of Information Systems Engineering and Business Intelligence, 4(1), 39-45. DOI: 10.20473/jisebi.4.1.39-45
Alam, Z., Sikder, M., & Panhwar, A. (2021). The role of cost management strategies for SME business: A conceptual framework. International Journal of Small and Medium Enterprises, 4(1), 35-58. https://doi.org/10.46281/ijsmes.v4i1.1559
Albérico, R., & Casaca, J. (2024). Relationship marketing and customer retention: A systematic literature review. Studies in Business and Economics, 18(3), 44-66. https://doi.org/10.2478/sbe-2023-0044
Bansal, P., Sharma, B., & Goyal, A. (2018). Sustainable supply chain management: A review and research agenda. International Journal of Sustainable Engineering, 11(4), 215-238.
Bhaskar, H. L. (2018). Business process reengineering framework and methodology: A critical study. International Journal of Services and Operations Management, 29(4), 527-533. https://doi.org/10.1504/IJSOM.2018.090456
Brigham, E. F., & Ehrhardt, M. C. (2021). Financial Management: Theory & Practice (16th ed.). Cengage Learning.
Brown, S. (2021). The Power of Influence: Leveraging Influencer Marketing in the Digital Era. Boston, MA: DEF Books.
Callado, A., Cunha Callado, A. L., & Do Bomfim, E. T. (2020). Target costing in micro and small companies from the IT sector. Revista Evidenciação Contábil & Finanças, 8(3), 125-141. https://doi.org/10.22478/ufpb.2318-1001.2020v8n3.50245
Castel Group. (2021). Our International Presence. Retrieved from https://www.groupe-castel.com/
Costa, W. M., Belli, R. F., & dos Santos, R. C. (2023). Relationship marketing strategies applied to digital media: Trends and implications. Journal of Global Marketing, 8(1), 188-2017.
Daraojimba, C., Abioye, K. M., Bakare, A., & Mhlongo, N. Z. (2023). Technology and innovation to growth of entrepreneurship and financial boost: A decade in review (2013-2023). International Journal of Management & Entrepreneurship Research, 5(10), 769-792. https://doi.org/10.51594/ijmer.v5i10.593
Deutsch, N., & Berényi, L. (2023). Technology and strategy: Towards strategic techno-management. Theory Methodology Practice, 19(1), 41-51. https://doi.org/10.18096/TMP.2023.01.04
Dias, C., Santos, J. A. L., Reis, A., et al. (2023). The Use of Oleaginous Yeasts and Microalgae Grown in Brewery Wastewater for Lipid Production and Nutrient Removal: A Review. Waste Biomass Valor, 14, 1799-1822. https://doi.org/10.1007/s12649-023-02032-8
Dubovaya, V., Komelina, A., & Ismail, S. H. (2018). The strategic framework of cost management for production competitiveness: World experience. International Journal of Engineering & Technology, 7(4.3), 432. https://doi.org/10.14419/ijet.v7i4.3.19910
Dunning, J. H. (2019). Multinational enterprises and the globalization of innovation. In The Oxford Handbook of Multinational Enterprise (2nd ed., pp. 269-295). Oxford University Press.
EABL Annual Report. (2020). East African Breweries Limited. Nairobi, Kenya.
Elsayed, M. H., Mohamed, M. F. M., Aly, T., & Gheith, M. (2024). Enhancing website visibility: Implementing SEO techniques for improved search engine ranking. International Journal for Research in Applied Science and Engineering Technology, 12(4), 3800-3805. https://doi.org/10.22214/ijraset.2024.60489
Fernández-Izquierdo, M. Á., Ferrero-Ferrero, I., Muñoz-Torres, M. J., & Escrig-Olmedo, E. (2020). Sustainable competitiveness in global markets. Corporate Social Responsibility and Environmental Management, 27(4), 1775-1788.
Gottfried, J. (2019). The economic impact of beer festivals: Evidence from the Great American Beer Festival. Journal of Wine Economics, 14(3), 286-301.
Hamood, H. H., Omar, N., & Sulaiman, S. (2019). Target costing implementation in Malaysian automotive industry: An exploratory study. Asia-Pacific Management Accounting Journal, 8(1), 284-299.
Hankinson, G. (2018). Collaborations and experiential marketing: New territories for the marketer and artist. Arts and the Market, 8(2), 200-211.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2018). Strategic Management: Concepts and Cases: Competitiveness and Globalization. Boston: Cengage Learning.
Horngren, C. T., Datar, S. M., & Rajan, M. V. (2014). Cost Accounting (15th Edition). Pearson.
Johnson, J. S., & Friend, S. (2014). Contingent cross-selling and up-selling relationships with performance and job satisfaction: An MOA-theoretic examination. Journal of Personal Selling and Sales Management, 35(1), 357-371. https://doi.org/10.1080/08853134.2014.940962
Johnson, M. (2020). Content Marketing: Engaging Audiences in the Digital Age. Chicago, IL: XYZ Press.
Julkovsky, D. J., Sehnem, S., Lara, A. C., et al. (2023). Circularity of resources in the craft brewery segment: an analysis supported by innovation. PREPRINT (Version 1). Retrieved from Research Square: [https://doi.org/10.21203/rs.3.rs-2451499/v1]
Kamisli, Z. (2020). Inventory management in supply chains. Supply Chain Management , 4(1),. 107-135
Kanyugi, G. E., & Gudda, P. (2019). Strategies adopted by brewing companies in Kenya in achieving competitive advantage: A case of East African Breweries Limited. International Journal of Academic Management Science Research, 3(12), 1-8.
Karaev, F., & Mercan, M. (2023). Exploring the Impact of Market Orientation and Innovation on Firm Performance in the Beverage Industry: The Mediating Role of Innovation. Eurasian Journal of Economic and Business Studies, 1(67), 139–155. https://doi.org/10.47703/ejebs.v1i67.256
Kariuki, S. W., & Rotich, G. (2017). Role of Stores Management in Reduction of Redundant Stock: A Case Study of Keroche Breweries Limited, Kenya. International Journal of Project Management, 1(5), 80-97.
Kastner, M., Ivanuša Bezjak, M., & Babuder, M. (2023). Business process improvement: Improvement of internal certification processes. Journal of Engineering Management and Industrial Technology, 1(4), 199-206. https://doi.org/10.61552/JEMIT.2023.04.005
Knutsen, H. M., Hansen, A., Wethal, U., & Potapohn, M. (2023). Brewing the Global Shift: Variegated Capitalism, Firm Strategies, and the Restructuring of the Southeast Asian Beer Industry. Journal of Contemporary Asia, 1–22. https://doi.org/10.1080/00472336.2023.2254774
Konstantinidis, C., Aggelopoulos, S., Tsiouni, M., & Rizopoulou, E. (2021). Estimating competitiveness of Greek food and beverage industry: a comparison between Greek flour milling industry and Greek food and beverage industry. EuroMed Journal of Business, 7(5), 24-32. https://doi.org/10.1108/EMJB-02-2021-0016
Kumar, R. (2017) Research Methodology: A Step-by-Step Guide for Beginners. 3rd Edition. Sage, New Delhi.
Lerro, M., Marotta, G., & Nazzaro, C. (2020). Measuring consumers’ preferences for craft beer attributes through Best-Worst Scaling. Agricultural Economics, 8(1), 481-492 https://doi.org/10.1186/s40100-019-0138-4
Mahmoud, M. A., Ali, H. R., Alaskar, A. M., & Rahman, A. A. (2018). The impact of capacity expansion on product availability in food supply chains. Journal of Manufacturing Systems, 46, 35-44.
Mandal, P. C. (2022). Innovation in organizations and management of new product development: Strategies and initiatives. International Journal of Innovation in the Digital Economy, 13(1), 1-15. https://doi.org/10.4018/IJIDE.311514
Mittal, S. (2024). Innovative costing methodology for strategic financial planning and resource allocation: Navigating budgetary constraints to drive sustainable growth and business leadership. International Journal of Applied Research in Management and Economics, 1(1), 1-11. https://doi.org/10.33422/iarmea.v1i1.284
Modupe, A. O., Obi, C. N., Adeleke, A. T., & Ajibola, O. (2019). Inventory management and organization performance: Evidence from selected manufacturing firms in Nigeria. Journal of Economics and Sustainable Development, 10(11), 136-146.
Musilová, I. (2019). The Relationship between Strategy and Competitiveness in Breweries – A Pilot Study. Acta Oeconomica Pragensia, 7(1), 70-88. doi:10.18267/j.aop.617
Musyoka, C. M., Shitseswa, A., & Wanjere, D. M. (2023). Effect of stakeholder participation in planning on performance of Kenyan alcohol manufacturing firms. African Journal of Empirical Research, 4(1), 219-227. https://doi.org/10.51867/ajernet4.1.19
Nafula, A. C., Kadima, M. J., & Miroga, J. (2022). Strategic product innovation on sustainable competitive advantage of alcoholic beverage industry: A case of East African Breweries Limited; Kenya. The Strategic Journal of Business & Change Management, 9(1), 782-793.
Nwaohiri, M., & Onuoha, C. (2021). Competitive parity and marketing performance of Nigeria Breweries Plc. International Journal, 3(12), 1-8. DOI: 10.46654/ij.24889849.b61214
Odesola, O. T., & Akinola, G. O. (2018). Effect of the Challenges Facing Use of Information and Communications Technology on Inventory Management amongst Breweries in Nigeria. Zeszyty Naukowe Politechniki Śląskiej, Seria: Organizacja i Zarządzanie, 119(29), 192-207.
Okello, G. (2022). Simplified Business Statistics Using SPSS (1st ed.). Chapman and Hall/CRC. https://doi.org/10.1201/9781003292654
Okonda, M. W. (2017). The Role of Competitive Advantage and Managerial Capabilities during Strategic Change on Performance of Firms in the Alcohol Industry in Kenya. International Journal of Novel Research in Marketing Management and Economics, 4(3), 109-136.
Okoro, A., Isaac, A. J., Anokwuru, C. P., & Ezenwoke, O. M. (2019). Strategic technology planning and performance of selected Nigerian breweries. International Journal of Engineering Research in Africa, 40(6), 89-103.
Olorunniwo, F., Hsu, M. K., & Kehinde, J. O. (2019). Supply chain management as a competitive advantage in the Nigerian manufacturing industry. International Journal of Production Economics, 5(3), 270-283.
O'Reilly, N. (2019). The impact of sponsorship on consumer attitudes and purchase intentions: The case of music festivals. Journal of Marketing Communications, 25(4), 349-367.
Ozuru, H. A. & Akahome, J. (2017); Experiential Marketing and Marketing Performance of Alcoholic and Non-Alcoholic Beverages in Nigerian Breweries PLC January 2017 Information Management and Business Review 8(6(I):14-18
Paananen, T. (2020). Why and how do SMEs adopt and use financial management controls: A comparative case study in three Finnish craft beer breweries.International Journal of Management Research, 2(2), 24-35.
Santos do Carmo, I., Marques, S. H., & Dias, Á. L. (2022). The influence of experiential marketing on customer satisfaction and loyalty. Journal of Promotion Management, 28(3), 1-8. https://doi.org/10.1080/10496491.2022.2054903
Santos, A. M., Cincera, M., & Cerulli, G. (2024). Sources of financing: Which ones are more effective in innovation–growth linkage? Economic Systems, 48(2), 101177. https://doi.org/10.1016/j.ecosys.2024.101177
Sintani, L., Ridwan, R., Kadeni, K., Savitri, S., & Savitri, N. (2023). Adoption of marketing strategies as a driver of strategic sustainable competitiveness. International Journal of Business Economics & Management, 6(1), 69-77. https://doi.org/10.21744/ijbem.v6n1.2087
Situbi, R., Murunga, K., & Juma, D. (2021). Effects of strategic product innovation on sustainable competitive advantage of alcoholic beverage industry: A case of Keroche Breweries Company Limited; Kenya. The Strategic Journal of Business & Change Management, 8(1), 531–544.
Smith, J. (2019). Digital Marketing Strategies. New York, NY: ABC Publishers.
Sun, M. (2020). The role of cost control in the financial management of small and medium-sized enterprises. E3S Web of Conferences, 218(13), 01039. https://doi.org/10.1051/e3sconf/202021801039
Teno, M. N., Anyingang, R. A., & Chenaa, T. A. (2017). Inventory Management Practices and Cost: Evidence of Selected Small Scale Cosmetics Enterprises in Douala, Littoral Region of Cameroon. International Journal of Managerial Studies and Research (IJMSR), 5(7), 24-32. DOI: 10.20431/2349-0349.0507005.
Thomas, J. S., Chen, C., & Iacobucci, D. (2022). Email marketing as a tool for strategic persuasion. Journal of Interactive Marketing, 57(3), 109499682210955. https://doi.org/10.1177/10949968221095552
Urdea, A. M., & Petrisor, C. C. (2021). Experts’ Perspective on the Development of Experiential Marketing Strategy: Implementation Steps, Benefits, and Challenges. Journal of Risk and Financial Management, 14(10), 502-516
Wang, L. (2023). The immersive and interactive experience in virtual reality games and films. Lecture Notes in Education Psychology and Public Media, 5(1), 491-500. https://doi.org/10.54254/2753-7048/5/20220674
Widajanti, E., & Ratnawati, T. (2020). Information technology infrastructure optimization for achieving innovation-based company performance. International Journal of Business, Economics and Law, 22(1), 1791-1797. ISSN 2289-1552
Williams, A. (2018). Social Media Advertising: Strategies and Tactics. Los Angeles, CA: QRS Publications.
Zahraee, S. M., Tolooie, A., Abrishami, S. J., Shiwakoti, N., & Stasinopoulos, P. (2020). Lean manufacturing analysis of a heater industry based on value stream mapping and computer simulation. Procedia Manufacturing, 51(4), 1379-1386. https://doi.org/10.1016/j.promfg.2020.10.192
Zaini, Z., & Saad, A. (2019). Business Process Reengineering as the Current Best Methodology for Improving the Business Process. Journal of ICT in Education (JICTIE), 6(2), 66-85.
Zuñiga-Collazos, A., Castillo-Palacio, M., & Padilla-Delgado, L. M. (2019). Organizational Competitiveness: The Conceptualization and Its Evolution. Journal of Tourism and Hospitality Management, 7(1), 195-211.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Esther Wambui Mburu, Prof. Allan Kihara Ph.D.
This work is licensed under a Creative Commons Attribution 4.0 International 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.
