Effectiveness of Strategic Drivers on Performance of Selected Channeled Product Ict Firms in Nairobi, Kenya

Abstract

The study sought to establish the effectiveness of strategic drivers on performance of selected channeled product ICT firms in Nairobi, Kenya. The specific objectives of the study were to determine the effect of firm strategies and firm capabilities on performance of selected channeled product ICT firms in Nairobi, Kenya. The study adopted cross-section research design to establish the effectiveness of strategic drivers on performance of channeled product ICT firms in Nairobi, Kenya. The target population of the study comprised of 12 distribution companies dealing in channeled ICT products in Nairobi. Out of the 12 firms, a total population of 309 employees was selected. Primary data was collected using structured questionnaires with open and closed ended questions. Secondary data was collected by the review sales records and financial statements, Validity of the instrument was tested using strategic management consultants and lecturers at St. Paul University in the department of Business Management. Reliability of the instrument was tested using Cronbach Alpha formula. Quantitative data was analyzed using descriptive statistics and inferential statistics such as multiple regression method. Multiple regression was conducted at 95% confidence level and 5% significance level. The study revealed there exist a significant positive relationship between firm strategies, firm capabilities and performance of selected channeled product ICT firms in Nairobi, Kenya. The study concluded that strategic drivers such as logistics, marketing and human resource strategies are crucial for organizational competitiveness if effectively embraced by top leadership. The study recommended that unless ICT firms dealing with channeled ICT products in Kenya recognize the essences of pricing decisions and product values, achieving competitive advantage would be an uphill task. The findings of the study would help the management of ICT firms to develop appropriate strategic drives to enhance their competitiveness. Policy makers such as the government and related agencies in the ICT sector would use the information to develop policies that will regulate the ICT product sector and import of products. Further, academicians and scholars would use the information to enrich existing literature and identify research gaps to be addressed.