MARKET PENETRATION AS AN IMPERATIVE OF FIRM PERFORMANCE IN THE CONTEXT OF CEMENT MANUFACTURING FIRMS LISTED IN NAIROBI SECURITIES EXCHANGE KENYA
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Abstract
The cement manufacturing sector plays a crucial role in job creation, social and development agenda and GDP of the country. However, the sector suffers challenges including high energy costs, production inefficiencies and high competition leading to poor performance in terms of low production and consumption trends. To resolve the performance challenge, this study employed use of market penetration as a method. The specific objective was market penetration employed to improve performance outcomes. The study was supported by the dynamic capability theories and balanced scorecard model. It deployed descriptive research designs while targeting 216 employees working in the three listed companies. Stratified and simple random samplings were utilised in grouping respondents as per company and position and in selecting the respondents to take part in the research. The Yamane formula was employed to get the sample size of 139 respondents who filled the structured questionnaire as the research tool. The questionnaires were tested for validity and reliability using 13 employees from the non-listed cement companies and Cronbach Alpha was employed at a standard of 0.7. The researcher collected primary data from the respondents and produced qualitative and quantitative data. Analysis included entering the data into SPSS where descriptive statistics was done to obtain mean, standard deviation, frequencies and percentages. In addition, inferential statistics was analysed using Linear regressions and correlation analysis to show effect of the variable on performance. The study revealed that market penetration (β=0.713; p=0.00), led to a positive and significant effects on performance of listed cement manufacturing firms in Kenya. The study concluded that market penetration as a variable significantly affected the performance of listed cement manufacturing company. The study recommended that management of NSE listed cement manufacturing firms need to implement strategic pricing method to facilitate market penetration.
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