Influence of Grand Strategies on Performance of Manufacturing Firms in Nairobi County, Kenya
Authors: Okoth Gerald , Miroga Julius 
Published: May 2023

Relationship between grand strategies and performance of manufacturing firms has gained credence globally. Manufacturing firms in Japan have recorded greater success in manufacturing sector globally due to their ability to adopt various grand strategies that have aided them to achieve sustained competitive advantage. However, manufacturing industry in Kenya has experienced decline over the last five years. Manufacturing sector GDP contribution in Kenya has reduced in 2022 first quarter to KES 118,134 from KES 113,460 million 2022 second quarter. Therefore, this study sought to examine the influence of grand strategies on performance of manufacturing firms in Nairobi County, Kenya. The specific objectives were to examine the influence of product development strategy on performance of manufacturing firms and to establish the influence of turnaround strategy on performance of manufacturing firms in Nairobi County, Kenya. The study was guided by Igor Ansoff’s theory, and Stage theory of successful turnaround. Descriptive research design was used in this study. One hundred (100) respondents from 20 large manufacturing firms in Nairobi County were targeted. The sampling frame comprised of marketing/sales managers, finance managers, human resource managers, operational managers, Strategy & Business Development Managers. The study sampled 100 using census sampling technique. Primary data was collected using a well-designed questionnaire. Quantitative data was analyzed using descriptive and inferential statistics. Descriptive analysis was summarized data in form of central tendency as well as dispersion and inferential analysis was used to test hypothesis at a significance level of 0.05. Descriptive analysis included; frequencies, Mean, Standard deviation and percentage while inferential analysis involved correlation analysis and multiple linear regression analysis. Prior to conducting multiple linear regressions, the study ensured that the assumptions of linear regression are met. The data was presented in form of tables and models. The results indicated that product development strategy had positive and significant effect on organizational performance. Turnaround strategy had a positive and significant effect on performance. On the other hand, the regression analysis revealed that the grand strategies explained up to 64.5% change in organizational performance of manufacturing firms in Nairobi County. The study concluded that grand strategies significantly influence organizational performance of manufacturing firms in Nairobi County. This study recommends that management of manufacturing firms pursuing product development strategies so as to come up with products that meet the changing needs of their customers. It is recommended that the companies should open new branches in new geographical areas to reach new customers not only beyond Nairobi County, but also beyond East Africa. The companies can expand their product lines by developing new products that may or may not be related to the current products to target current customers. The study recommends that management of manufacturing firms should create an organizational culture that is in line with their turnaround strategy.

Keywords: [Organizational Performance, Product Development Strategy, Turnaround Strategy]