Generic strategies and firm performance: An investigation of informal sector micro-enterprises in Kenya

Citation:
Mungai E, Ogot M. "Generic strategies and firm performance: An investigation of informal sector micro-enterprises in Kenya." International Journal of Business and Management. 2017;12:148.

Abstract:

Micro-enterprises (MEs) have been shown to collectively be the largest employer in most developing countries
thus playing a significant role in the countries economies. Using informal sector micro-enterprise furniture
makers (wood and metal) in Nairobi, Kenya and based on Porter's competitive business strategies typology, this
study sought to determine if the strategies employed by the informal sector MEs fit within the typology
framework, and if membership within the strategic groups in the typology are a predictor of better business
business performance. From the study, although membership within the two focus strategic groups of
differentiation and low cost was confirmed, unlike studies done with medium and large enterprises, membership
was not found to be a predictor of better business performance. Porter's typology may therefore not adequately
capture the competitive business activities relevant to and directly by MEs, presenting an opportunity for
research into the development of competitive business strategy typologies directly derived from their activities
and therefore applicable to them.

Keywords: competitive business typology, micro-enterprises, business performance, informal sector

Notes:

n/a

UoN Websites Search