Competitive Strategies and Performance of Accredited Universities in Kenya

Abstract

The strategy-performance discourse has continued to spur debate with scholars in strategic management suggesting that competitive strategies are not strongly correlated with performance and that the relationship is limited in explaining performance heterogeneity. Thus, the strategyperformance connection remains unresolved. Researchers in strategic management have argued that this gap could be addressed by considering factors internal to organizations as probable contingent elements that enhance the strategy-performance linkage. This study conceptualized ethical values and corporate reputation as probable contingent factors affecting organizational performance. Thus, key focus of this research was to probe the role of competitive advantage, ethical values, and corporate reputation on the connection among competitive strategies and performance in accredited universities in Kenya. The specific objectives were to determine the influence of competitive strategies on performance of accredited universities of Kenya; establish the intervening effect of competitive advantage on the association between competitive strategies and performance of accredited universities of Kenya; determine the moderating influence of ethical values on the relationship between competitive strategies and performance of accredited universities of Kenya; determine the moderating effect of corporate reputation on the connection between competitive strategies and performance of accredited universities of Kenya and lastly establish the joint effect of competitive strategies, competitive advantage, ethical values and corporate reputation on the performance of accredited universities in Kenya. The Industrial Organization Economic theory anchored the research. Other theories were Resource-based, Stakeholder and Virtue Ethics. A positivist philosophy guided the research, which employed a descriptive cross-sectional survey targeting a population of 53 accredited Kenyan universities. Data was collected from university officials through email questionnaires due to COVID-19 restrictions, with a response rate of 66.7%. Analysis included mean scores, percentages, and standard deviations, with linear, stepwise, and multiple regression analyses used to test the hypotheses. The study found that accredited universities in Kenya should employ competitive strategies to achieve success, with market penetration having the most significant impact, followed by strategic alliances, product development, focus, differentiation and cost leadership. Competitive advantage did not mediate the association among competitive strategies and performance, while ethical values and corporate reputation insignificantly moderated the effect of competitive strategies on university performance. All variables combined had a significant effect on performance compared to the individual effects. The study recommended including input from additional informants, such as staff or students, to enrich future research and reduce bias. Also, the study was not generalizable as it was limited to accredited universities in Kenya. Future research could be extended to other sectors.