Strategy control influences the performance of textile firms under AGOA.

Abstract

The African Growth and Opportunity Act (AGOA), enacted on May 18, 2000, as Title One of the Trade and Development Act of 2000, was designed to offer sub-Saharan African nations, particularly those enacting economic reforms, preferential access to U.S. markets. The act aimed to enhance trade relations by granting more favorable market access than that offered to other regions without free trade agreements. In 2015, AGOA was extended for 10 more years by President Obama, affecting 49 eligible African countries through the Extension and Enhancement of AGOA Act, signed on June 29, 2015. This study evaluated how strategy control influences the performance of textile firms under AGOA. Data collection involved closed-ended questionnaires, pilot-tested for validity and reliability, representing 10.5% of the target population. Ethical clearance and necessary permits were obtained. Data analysis was performed using SPSS version 24. Strategy Control: A positive and significant relationship with performance was observed (r=0.822, p<0.05), implying that effective strategy control measures are linked to improved performance. The recommendations focus on cultivating proactive foresight and developing agile, adaptable strategies to manage external uncertainties, particularly regarding the future of the AGOA agreement. Firms are also advised to address the implementation gap by focusing on resource mobilization, training, and strategic partnerships, as well as enhancing strategic control through data-driven decision-making and quality management. For policy considerations, the study recommends that the Kenyan government intensify lobbying for AGOA's extension or pursue alternative trade agreements to diversify market access. Additionally, policymakers should support the textile sector by developing local supply chains and implementing policies to reduce production costs, such as addressing high electricity costs.