Influences of functional experience on choice of competitive strategies: a survey of top executives of companies listed on the Nairobi stock exchange

Abstract

The objective of this study was to consider the influences of experiential background on the choice of competitive strategies made by the top executives of the companies listed on the Nairobi Stock Exchange. The study had a number of hypotheses relating choice of innovation, marketing, quality, service differentiation strategies; and low-cost leadership strategies to the duration chief executives have served in various functional areas. A structured questionnaire was used to collect primary data, through a drop-and-pick arrangement. No secondary data was used in this study. The SPSS was used to develop a database to facilitate analysis of the collected data. Frequency tables, descriptive statistics and correlations analysis conducted on the survey responses of 31 top executives, representing 62% of the companies in the study census reveal that, to some extent, experience in particular functional areas are related to the choices of the competitive strategies adopted by the chief executives. The study further revealed that top executives in Kenyan companies are emphasizing a mixture of the dimensions of the above strategies; with no clear-cut single strategic orientation. The most significant finding is that there is very low emphasis placed on research and development and hence very low inclination to innovation, which might explain the low level of competitiveness of Kenyan products in the global market. Limitations of the study, implications of the findings of the study for the top executives are discussed and recommendations are made for further research in this vital area of management