| dc.description.abstract | Regardless of the fact that micro and small businesses significantly contribute to
Kenya's economy through job creation and economic development, their performance
has been stagnant for a long period, and in many cases worsening. This might
adversely affect the ability of the MSEs to contribute to job creation and the growth of
the gross domestic product in the country and might negatively affect the socio-
economic development of the nation. Despite widespread academic evidence on
effects of business level strategy on performance of businesses, there seems to be no
consensus on the specific effect of business level strategies; differentiation, focused
differentiation, cost leadership, and focused cost leadership on organizational
performance of MSEs. This study aims to bring into the body of knowledge more
evidence. This study has adopted Porter's generic strategy model and Ansoff Model as
the underpinning theories. It has employed a descriptive research design. The target
population was the 279 salons and beauty spas. Using stratified proportional sampling,
a representative sample of 165 respondents was established, and then participants were
chosen for each stratum using simple random selection. Data was collected using a
structured questionnaire which was piloted for validity and reliability before being
administered. Descriptive statistics were derived using qualitative analysis and
inferential statistics using multiple regression. Using a hypothesis, the study tested
model using Analysis of variance. The study was carried out with the assistance of
Version 24 of the Statistical Package for Social Sciences software. Using ANOVA,
the study found that cost leadership, differentiation strategy, focused cost leadership
and focused differentiation strategy are predictors of performance of MSEs in Nairobi
County (p<0.01). The study concludes that there; is significantly and positively
moderate influence of cost leadership (p<0.05; β=0.251; r= 0.413), significantly and
positively low influence of differentiation strategy (p=0.0.01; β=0.246; r= 0.265).
significantly and positively moderate influence of focused cost leadership strategy
(p=0.0.01; β=0.292; r= 0.489) and significantly and positively moderate influence of
focused differentiation strategy (p<0.0.05; β=0.224; r= 0.404) on performance of
MSEs operating within Nairobi County. The study recommends that MSEs in Nairobi
County should; review their cost leadership approaches for the purpose of attracting
and retaining more customers in broader markets as well as increase adoption of
differentiation strategies e.g. highly skilled staff and unique affordable products in
order to attract high-end clients. They should also try focused cost leadership and
focused differentiation in order to increase sales in narrow markets | en_US |
