Influence of Selected Strategy Choices on Firm Performance in the Shipping Industry in Kenya

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.