Influence of Growth Strategies on the Performance of Manufacturing Firms in Kiambu County.

Abstract

The manufacturing sector is a key driver of economic growth, job creation, and industrial development in Kenya. This study determined the influence of growth strategies on the performance of manufacturing firms in Kiambu County. Specifically, it assessed the influence of market expansion strategies, product diversification strategies, and technology adoption strategies on firm performance. The study adopted a positivist research philosophy, and quantitative data was collected through structured questionnaires administered to employees across various departments. The study targeted a population of 405 staff from five major manufacturing firms in Kiambu County, from which a sample of 201 respondents was selected. The sample was selected using stratified random sampling. Data were analyzed using the Statistical Package for the Social Sciences (SPSS). Descriptive statistics revealed that respondents generally agreed that market expansion strategies, product diversification strategies, and technology adoption strategies had been implemented within their firms, with average mean scores of 3.73, 3.88, and 3.95 respectively, indicating widespread adoption and perceived effectiveness. Inferential statistical analysis, which include correlation and multiple regression, established a strong positive relationship (R = 0.812) between the combined growth strategies and firm performance. The R- squared value of 0.659 showed that 65.9% of the variation in performance was explained by the three strategies. All three strategies had statistically significant effects on performance (p < 0.001). Technology adoption had the strongest influence (B = 0.402, β = 0.447, t = 8.015), followed by market expansion (B = 0.310, β = 0.342, t = 6.148) and product diversification (B = 0.278, β =0.319, t = 5.764). The study concluded that growth strategies significantly enhance the performance of manufacturing firms in Kiambu County, with technology adoption having the greatest influence. It recommended that firms invest in advanced technologies, expand into new markets through strategic partnerships, and diversify their product offerings to improve competitiveness and sustainability. Policymakers were also recommended to support these initiatives by enacting innovation-friendly industrial policies and improving infrastructure to stimulate manufacturing growth.