The Application of Cost Leadership Strategy on Performance of Chinese Construction Firms in Kenya

Abstract

The study's overarching goal was to draw conclusions on the relationship between CCF performance in Kenya and the cost leadership strategy. We were able to achieve these objectives by dissecting the effects of automation and robotics, economies of scale, and cost of control measures on the firms' BSC performance. The study's results showed that milk processors' performance was positively and statistically associated with all three measures of cost leadership approach. In conclusion, the results showed that when the organizations adopted a cost leadership approach, it significantly improved their performance. On the basis of the findings, it is possible to draw the conclusion that CCF in Kenya has the potential to improve their performance by lowering their expenditures by expanding their operations, diversifying into adjacent industries, and improving their operating procedures. The CCF that was registered in Kenya between the years 2018 and 2022 was taken into consideration in this study. Future research should include additional construction companies since they may have a big influence on the sector. In addition, the research used Likert's scale to gather data on the financial performance of businesses involved in milk processing. Subjects filled out questionnaires on their own time for this objective. To validate the given responses, more studies in the same field are recommended to use secondary data derived from the financial records of the firms. The results of the regression analysis showed that the study could account for 52.1% of the variance in financial performance. Also, the study's results on performance are credible since they were supported by statistical analysis (ANOVA) with a p-value of 0.000, which is less than 0.005. The estimated coefficients demonstrated a favorable connection between performance and all of the parameters. Therefore, it is very necessary to do more research into factors that extend beyond the previously examined cost leadership strategies. The fact that CCF enterprises in Kenya still exhibit performance variation is a result of these factors. Finally, you must know that a crosssectional approach was used to conduct this study. Future studies should take into account longitudinal characteristics in order to compare and analyse the findings over a longer period of time.