COMPETITIVE STRATEGIES AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA; THE ROLE OF CORPORATE IMAGE

Abstract

The performance of firms not only depends on the strategies in place but also the image they create
to stakeholders and general market. Corporate image can generate competitive advantage when
there is an insignificant or no difference between rivals. Maintaining a consistent corporate image
is therefore vital as firms may require less effort in positioning themselves on the market and
therefore reduce costs which eventually lead to improved performance. The study sought to
determine the role of corporate image on the relationship between competitive strategies and the
performance of large manufacturing firms in Kenya. It was guided by positivist philosophy and a
cross-sectional descriptive survey. The target population was large manufacturing firms in Kenya
where a structured questionnaire was utilized to collect data. Regression analysis was used to test
the hypotheses. The results indicated that firms perceive corporate image positively especially to
large manufacturing firms in Kenya and implying that competitive strategies and corporate image
jointly explain variation in performance significantly. The finding of this study implies that
managers particularly with respect to decision making and scope of operation need to understand
the implication of their decisions in terms of cost management, product quality and development
as well as developing strong company image. They also need to check their processes, customer
satisfaction and finally employee satisfaction. A happy employee will always serve the customer
well and the vice versa.