Influence of Porter's Generic Strategies on Performance of Private Chartered Universities in Kenya

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Date
2019-07
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Pan Africa Christian University
Abstract
As the numbers of private universities continue to grow, competition for market survival has intensified. Competition for survival has been the guiding force for existence and it has been associated with the performance of the Chartered private Universities in Kenya. Porter’s Generic Strategies have been an epitome of any organization successful performance. The general objective of the study was to establish the influence of Porter’s Generic Strategies on performance of private universities in Kenya. The specific objectives were influence of differentiation, Focus and cost leadership strategies on performance of private universities in Kenya. Porter’s Generic Competitive Strategies, Theory of Dynamic capabilities and Resource based theories were used to inform the study. The study adopted a descriptive survey design. This study targeted registrars, directors, chairpersons of departments and finance officers of the 13-chartered private universities in Kenya. Due to the small population, this study adopted a census method approach. Primary data was collected through the administration of the questionnaires with a Likert scale. Cronbach's Alpha was used for the five point Likert scale items where all the statements were said to be reliable thus suitable to collect data. This study used correlation and regression to link the relationship between the independent and dependent variables. Regression results showed that differentiation strategy (r=0.218, p=0.000), Focus strategy (r=0.094, p=0.006) and cost leadership strategy (r=0.116, p=0.001) were positively and significantly related to performance of private universities in Kenya. The study concluded that differentiation strategies that can be adopted in universities are diverse, ranging from quality in terms of qualified lecturers and teaching methods used, value addition and adoption of technology in universities; incentive programs in terms of availability of recreational facilities and diverse programs and students experience with reference to duration of learning and formulation of policies that are favorable to students in universities. The study recommended that the management of the private universities have an important role to offer advice, information and intelligence and thereby to think strategically for the future of the whole organization. They are expected to think and act strategically in their own areas of responsibility. This is particularly important if the educational and business environment is different for the departments of the educational institution. The study further recommended for unique higher education marketing strategies that help raise awareness of courses and programs while bringing in new students and resources needed to sustain online programs.
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organizational performance, Private Universities in Kenya
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https://repo.pacuniversity.ac.ke/handle/123456789/2993.2
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TD-Department of Business Studies (MST)

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