BLUE OCEAN STRATEGY AND PERFORMANCE OF MANUFACTURING FIRMS LISTED ON NAIROBI SECURITIES EXCHANGE (NSE) IN KENYA
Abstract
Purpose of the study: The study examined the effect of blue ocean strategy on performance of manufacturing firms listed on the Nairobi Securities Exchange in Kenya.
Methodology: A positivist research paradigm and an explanatory research design were adopted. The target population consisted of 95 functional heads of departments drawn from 19 listed manufacturing firms through a census approach. The data collection instrument was a semi-structured questionnaire with closed and open-ended questions. A pilot study was conducted to test the reliability of the research instrument. The instrument was also subjected to face, construct, and content validity. Data were analyzed using descriptive and inferential statistics.
Findings: The study found that blue ocean strategy significantly and positively affected firm performance (β=0.649, t=9.222, p=0.000), explaining 50.3% of the variance in performance.
Recommendations: The study recommends that managers of manufacturing firms should prioritize blue ocean strategy to improve performance by creating uncontested market spaces. Manufacturing firms invest in market research to identify untapped customer segments, develop value-added services, implement strategic rebranding initiatives, and foster continuous innovation to differentiate themselves from competitors.
Keywords: Blue ocean strategy, performance, manufacturing firms, Nairobi Securities Exchange, Kenya
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