Influence of Porters Generic Strategies on Performance of Private Chartered Universities in Kenya: A Case of Nairobi County
Abstract
As the numbers of private universities continue to grow, competition for market survival has intensified. Competition for survival has been the guiding force for existence and it has been associated with strategic management practices. Porter's Generic Strategies have been an epitome of any organization successful performance. The general objective of the study was to establish the influence of Porter's Generic Strategies have been an epitome of any organization successful performance on performance of private universities in Kenya. The specific objectives were influence of differentiation, market focus and cost leadership strategies on performance of private universities in Kenya. Porter's Generic Competitive Strategies, Theory of Dynamic capabilities and Resource based theories were used to inform the study. The study adopted a descriptive survey design. This study targeted registrars, directors, chairpersons of departments and finance officers of the 13-chartered private universities in Nairobi County. Due to the small population, this study adopted a census method approach. Primary data was collected through the administration of the questionnaires with a Likert scale. Cronbach's Alpha was used for the five point Likert scale items. This study used correlation and regression to link the relationship between the independent and dependent variables. Regression results showed that differentiation strategy (r=0.218, p=0.000), market focus strategy (r=0.094, p=0.006) and cost leadership strategy (r=0.116, p=0.001) were positively and significantly related to performance of private universities in Kenya. The study concluded that differentiation strategies that can be adopted in universities are diverse ranging from quality in terms of qualified lecturers and teaching methods used. Value addition in terms of rand image and adoption of technology in universities; incentive programs in terms of availability of recreational facilities and diverse programs and students experience with reference to duration of learning and formulation of policies that are favorable to students in universities. The study recommended that the management of the private universities have an important role to offer advice, information and intelligence and thereby to think strategically for the future of the whole organization. They are expected to think and act strategically in their own areas of responsibility. This is particularly important if the educational and business environment is different for the departments of the educational institution. The study further recommended for unique higher education marketing strategies that help raise awareness of courses and programs while bringing in new students and resources needed to sustain online programs.
Keywords: Porters Generic, Performance, Private Universities & Nairobi County, Kenya.
References
Allen, R. S., & Helms, M. M. (2016). Linking strategic practices and organizational performance to Porter's generic strategies. Business Process Management Journal, 12(4), 433-454.
Birinci, M., & Eren, E. (2013). The Effect of Strategic Management Practices on the Performance of Universities in Turkey. Journal of Global Strategic Management, 13, 17-33.
Blumberg, B., Cooper, D. R., & Schindler, P. S. (2008). Quantitative and qualitative research. M. Hill, Business Research Methods, 191-222.
Brown, E. L. (2015). Documenting teacher candidates' professional growth through performance evaluation. Journal of Research in Education, 25(1), 35-47.
Bush, T. and Coleman, M. (2014). Leadership and Strategic Management in Education, Paul Chapman Publishing Ltd, London.
Butcher, A., & Huo, Y. P. (2011). Realisation of a vision: a case study of the focus-differentiation strategy implemented by the University of Puget Sound. International Journal of Management in Education, 5(2-3), 241-257.
Chacha, C. N. (2016). Reforming higher education in Kenya: Challenges, lessons and opportunities. A paper presented at the State University of New York Workshop.
Conrad, R. (2014). When Competitive Advantage Doesn’t Lead to Performance: The Resource Based View and Stakeholder Bargaining Power”, Organization Science, 10, (2), 119-133.
Damanpour, F. (2016). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of management journal, 34(3), 555-590.
Denning, B.W. & Lehr, M.E. (2014): "The Extent and Nature of Corporate Long Range Planning in the U.K. - Part 1." Journal of Management Studies, 8(2), pp. 145-161
Gannon, J. M., Roper, A., & Doherty, L. (2015). Strategic human resource management: Insights from the international hotel industry. International Journal of Hospitality Management, 47, 65–75.
Graham E., John F., & Andrew T. (2016). "Strategy and the internationalization of universities", International Journal of Educational Management, Vol. 22 Issue: 3, pp.239-250.
Grant, R. (2013). “The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation”, California Management Review, 33 (3), 114- 135.
Gratton, A. (2013). Strategic Management: Strategic Formulation and Implementation. Richard D. Irwin Inc. U.S.A., 3rd Edition.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Hill, M. and Jones, T. (2013). The Entrepreneurial Personality, Concepts, Cases and Categories, London, Routledge.
Juha, K. (2013) Competitive Strategies in Higher Education: Turku University of Applied Sciences.
Kamau, S. M. (2013). Competitive strategies adopted by private universities in Kenya. MBA thesis. University of Nairobi.
Kaplan, B. and Norton, E. (2000). Managing across borders: new strategic requirements, Sloan Management Review, Vol. 28 No.2.
Klein, T. A., Patsy, F. Scott, and Joseph L. C. (2015), “Segmenting Marketing in Urban Higher Education: Community- Versus Campus-Centered Students,” Journal of Marketing for Higher Education, 11 (Issue1), 39-61.
Kolding, A. (2013). Pricing Strategies for Small Business. Self Cunsel Press.
Learned, Q. (2012). Achieving the CEO's agenda: education for executives', Management Review, May: pp. 44-49.
Lengnick-Hall, M. L., Lengnick-Hall, C. A., & Rigsbee, C. M. (2013). Strategic human resource management and supply chain orientation. Human Resource Management Review, 23(4), 366–377.
Lewis D., Hawes M., Jon M. (2014); Student Target Marketing Strategies for Universities, Journal of College Admission, n196 p14-19
Lynch, P. (2015). Translating Strategy into action. Harvard Business School Press, USA Magagula, C. M. &
Ngwenya, A. P. (2013). A comparative analysis of the academic performance of distance and on-campus learners. Turkish Online Journal of Distance Education 5, 4.
María J. N & Lluis S. (2015). The importance of diverse collaborative networks for the novelty of product innovation, Technovation, Volume 27, Issues 6–7, 2007, Pages 367-377, ISSN. 0166-4972).
Min Z., Xiande Z. & Marjorie L., (2018) "Effects of absorptive capacity, trust and information systems on product innovation", International Journal of Operations & Production Management, Vol. 38 Issue: 2, pp.493-512.
Murray, A. I. (1988). A contingency view of Porter's “generic strategies”. Academy of management review, 13(3), 390-400.
Nayeri, A. (2015). The Transformation of the U.S Banking Industry: What along Strange Trip It’s Been. Brookings Papers on Economic Activity.
Nelson, K. D. (2017). Differentiation and Technology: A Study of an Elementary School's Use of Technology in Differentiated Lessons, Gardner-Webb University.
Nzuki, M. (2014). “Technical efficiency of small–Scale industry application of stochastic production frontier model,” Economic and Political Weekly, pp 592 – 597, February.
Orodho, A. J., & Kombo, D. K. (2002). Research methods. Nairobi: Kenyatta University, Institute of Open Learning.
Ouma, G., & Oloko, M. (2015). The relationship between porter’s generic strategies and competitive advantage. International Journal of Economics, Commerce and Management, III, 6, 1058-1092.
Pauline W. K., (2017), Influence of Strategic Management Practices on the Performance of Public Universities in Kenya; The Strategic Journal of Business & Change Management. Vol. 4, Iss. 4 (34), pp 629 – 658
Pearce T. and Robinson, D. (2014). How information gives you a competitive advantage, Harvard Business Review, 63, 4, 149.
Poddar, Q. (2014). A Resource-Based Approach to Strategy Analysis in Small-Medium Sized Enterprises, Small Business Economics, 12, 3, 233.
Porter, M. (2007). Porter's generic strategies. Retrieved June, 14, 2009.
Reilly, T. (2002). "Be a champion of the solution", Industrial Distribution, 91(5): 62.
Robert F. H., & Tomas M. H., (2012); Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination, Journal of Marketing Vol. 62, No. 3, pp. 42-54.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Roxy, R. (2010). How much does industry matter? Strategic Management Journal, 12, 167-185.
Shuen, Z. (2012). From marketing mix to relationship marketing: towards a paradigm shift in marketing, Management Decision, 32(2), 4–32.
Stahl, M. M. and Sharplin, P. (2014). Strategic Management Theory: An Integrated Approach, (10th Ed.) Cengage Learning.
Suikki, R., Tromstedt, R., & Haapasalo, H. (2012). Project management competence development framework in turbulent business environment. Technovation, 26 (5–6), 723–738.
Tansey, P., Spillane, J. P., & Meng, X. (2014). Linking response strategies adopted by construction firms during the 2007 economic recession to Porter’s generic strategies. Construction management and economics, 32(7-8), 705-724.
Taylor, B. & Irving P (2013) "Organized Planning in Major U.K. Companies." Long Range Planning, 4(3), , pp. 10-26
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Thompson, A.A. Jr. & Strickland, J. (2008). Crafting and executing strategy: The quest for competitive advantage. New York: McGraw-Hill Irwin.
Van N. (2007). Strategic management in South African education: The leadership dimension, Africa Education Review, 3:1-2, 84-99.
Wemerfelt, Q. R. and Montgomery, F. S. (2014). The effect of competition on strategic orientation of cement manufacturing firms in Kenya. Basic Research Journal of Business Management and Accounts. 3(3) 48-52.
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic management journal, 5(2), 171-180.
Wit, E. and Meyer, W. U. (2014). Effects of strategic management drivers on organizational performance: a survey of the hotel industry in Kenyan Coast. International Journal of Arts and Commerce 2(11).
Yorio, P. L., Willmer, D. R., & Moore, S. M. (2015). Health and safety management systems through a multilevel and strategic management perspective: Theoretical and empirical considerations. Safety Science, 72, 221–228.
