Abstract:
The purpose of this study is to examine the perceived influence of selected strategy
choices on performance of shipping companies in Kenya. The study is based on the
literature provided by scholars who argued that the global orientation and increased
performance-based competition, combined with rapidly changing technology and
economic conditions have enhanced competitive advantage of the business and improve
corporate performance. Empirical studies of Alpha manufacturing companies in
Mauritius found a high positive association between better corporate leadership and
operating performance. The key strategy choices that the researcher explored are;
differentiation strategy, global business strategy and strategic alliances. The general
objective is to establish the perceived strategies that of strategic management that can
influence performance of firms in the shipping industry in Kenya. The study aimed at
assessing how differentiation strategies, global business strategy and global strategic
alliances influence firm performance in the shipping industry in Kenya. The researcher
used mixed research design including qualitative research design and quantitative
research. The total population of this study involves 76 shipping lines, shipping agencies
and cargo consolidators. The target respondents under this study are the firms that have
been operational for more than five years in the industry from the date of incorporation
including shipping lines, shipping agencies, cargo consolidators and top management of
Kenya Maritime Authority. A sample of 223 was obtained. Primary data was collected
using questionnaires while company websites and publications were used to obtain
secondary data. The main method of data analysis is multiple linear regression models
based on the fact that the study has several strategy choices and regression models are
best placed to do the analysis. SPSS version 20.0 was used to do the analysis. Data
presentation was done using tables, bar graphs, pie charts and in some instances
descriptive analysis especially where interviews were done. Research findings indicate a
positive relationship between differentiation strategies, global business strategy and
strategic alliances on firm performance of firms in shipping industry in Kenya. The
researcher recommends further research into other variables identified and not studies
and other issues raised like piracy and changing global shape of ships being used in the
industry.