COST LEADERSHIP STRATEGY, COMPETITIVE ADVANTAGE, AND PERFORMANCE: A CROSS-SECTIONAL STUDY IN THE CONTEXT OF MILK PROCESSING FIRMS IN KENYA

International Journal of Management, Innovation & Entrepreneurial Research

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Field Value
 
Title COST LEADERSHIP STRATEGY, COMPETITIVE ADVANTAGE, AND PERFORMANCE: A CROSS-SECTIONAL STUDY IN THE CONTEXT OF MILK PROCESSING FIRMS IN KENYA
 
Creator G. Kimiti, Paul
M. A. Muathe, Stephen
M. Murigi, Elishiba
 
Subject Firm Performance
Cost Leadership Strategy
Competitive Advantage
Milk Processing Firms in Kenya
Firm Performance
 
Description Purpose of the study: Cost leadership strategy is driven by economies of scale, economies of scope, and operational efficiency is a remedy to a performance where firms are facing high costs. This study sought to investigate the influence of cost leadership strategy on the performance of milk processing firms in Kenya through the lens of competitive advantage as a mediator.
Methodology: The study adopted descriptive and explanatory non-experimental research designs. It was a census of all 29 milk processing firms registered with Kenya Dairy Board as of June 2019. Sampling was done using proportionate stratified random sampling technique and data was collected using self-administered semi-structured questionnaires. The analysis was done using means, standard deviations, and regression.
Main Findings: The findings showed that a cost leadership strategy had a positive and significant effect on the performance of milk processing firms in Kenya with a competitive advantage partially mediating the relationship. The constituent measures of cost leadership strategy namely economies of scale, economies of scope, and operational efficiency accounted for 40.1% of the variation in firm performance.
Applications of this study: This study provides suggestions for firms to manage costs and therefore improve performance. This is by increasing the size of operations, expanding into related business areas, and improving operational processes.
Novelty/originality of this study: The study examines the influence of cost leadership strategy in a new context of milk processing firms in Kenya. It also incorporates a competitive advantage as a significant variable affecting the relationship between costs and performance.
 
 
Publisher GIAP Journals
 
Date 2020-10-03
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
"Peer-reviewed Article", "Non-refereed Book Review", "Invited Commentary'
 
Format application/pdf
 
Identifier https://giapjournals.com/ijmier/article/view/ijmier.2020.627
10.18510/ijmier.2020.627
 
Source International Journal of Management, Innovation & Entrepreneurial Research; Vol. 6 No. 2 (2020); 64-76
2395-7662
 
Language eng
 
Relation https://giapjournals.com/ijmier/article/view/ijmier.2020.627/3323
 
Rights Copyright (c) 2020 Paul G. Kimiti, Stephen M. A. Muathe, Elishiba M. Murigi
https://creativecommons.org/licenses/by-sa/4.0
 

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