EFFECT OF COST LEADERSHIP STRATEGY ON THE PERFROMANCE OF MANUFACTURING FIRMS IN KENYAEFFECT OF COST LEADERSHIP STRATEGY ON THE PERFROMANCE OF MANUFACTURING FIRMS IN KENYA

Abstract

This study sought to investigate the effect of cost leadership strategy on performance of manufacturing firms in Kenya. A survey questionnaire and an interview guide was used to collect data from 131 firms drawn from 12 key industrial subsectors located within Nairobi and its environs. The study adopted two tools of analysis namely; Pearson’s correlation to indicate positive correlation between the input and the output variable and regression analysis to explain the nature of relationship between the input and output variable. F-statistics was also used to determine the validity of the model while R-squared was used to help determine the model goodness of fit. The study adopted descriptive and explanatory research design. The findings revealed that performance of manufacturing firms are significantly influenced by cost leadership strategy. Arising from the findings, the study concludes that the managers of manufacturing firms adopt cost leadership strategy to increase their competitiveness and performance.