Relationship Between Strategy and Performance in Chartered Private Universities in Kenya

Abstract

The study aimed at establishing whether the Chartered Private Universities in Kenya have applied the Ansoff growth matrix as a tool for strategic growth and performance in their operations. Miles and Snow growth matrix was used in the study to back up Ansoff growth matrix. The study was anchored on open system theory and resource based view (RBV) theories among other theories. Descriptive survey design was adopted in the study. The study population targeted was all chartered private universities in Kenya. The study data was gathered by employing both closed and open ended questionnaires. Quantitative data was analyzed using correlation data analysis method to determine the degree of association between strategy and performance. Also means, standard deviation and variance were computed to describe the location of distribution, measure the spread or variability, and to capture the degree of spread respectively. Qualitative data on the other hand was analyzed using content analysis method. The study finding revealed that, the strategies being applied are diverse since most Universities as was established in the this study have indicated to apply the four Ansoff growth strategies of Market penetration, market development, product development and even diversification strategies to various extents thus leading to the performance that had been achieved by the respondent universities. On Miles and Snow growth strategies, all the three strategies are adequately employed except the defender strategy which 64.3% have applied to a very little extent. Overall, the study established after rating the extent of adoption of each of the variables used to test the Ansoff growth strategies that, market penetration and product development were implemented to great extent, while market development and diversification were implanted to moderate extent. On Miles and Snow growth matrix the study revealed that prospectors’ strategies, analyzers strategies and reactors strategies were all implemented to moderate extent with defender strategies being implemented to a little extent. All this strategies as revealed by the study have the potential of enhancing growth in a chartered private university with 87.4% variation on performance if adopted and implemented well. The study finally conclude that, there exists positive relationship between the strategy and performance of chartered private universities in Kenya which is clearly demonstrated by the recent growth of chartered private universities in terms of students enrolment, size and scope of these institutions and quality offering aimed at ensuring sustainable growth and performance