Title:
THE ROLE OF FIRM CHARACTERISTICS IN THE RELATIONSHIP BETWEEN MARKETING STRATEGIES AND ORGANIZATIONAL PERFORMANCE OF FOOD AND BEVERAGE PROCESSING COMPANIES IN KENYA

Authors:
Daniel Mulinge Nthenge, Francis Ndungu Kibera, Raymond Musyoka, Mary Kinoti, Kenya

Abstract:

This paper sought to establish the role of Firm characteristics in the relationship between marketing strategies and firm performance of Food and Beverage processing Companies in Kenya. The study adopted a descriptive cross sectional survey method. A census survey comprising 71 senior managers was contacted for this study. Data was analyzed using descriptive and simple regression analysis. The findings established that there is a positive correlation between structure related characteristics (Age and size) and performance of food and beverage processing companies. The regression results revealed positive moderating effects of firm characteristics in the relationship between Marketing strategies and firm performance. This study gives a theoretical contribution in strategic marketing literature by suggesting a model that explains the role of moderating variable in the marketing strategies- firm performance relationship in manufacturing context as supported by the empirical results presented. The study recommends for marketing practitioners and policy makers in food and Beverage companies to look for the appropriate mix of marketing strategies and firm characteristics for optimal firm performance. In addition the study recommends to policy makers to push for legislations aimed at low interest rates for startup firms, reduced tax on essential processed commodities and subsidized inputs by the Government. It is also prudent for policy makers to push for budgetary allocations through the legislative arm of Government to sectors that enhance the industry growth like educational institutions and research bodies.