Influence of Product Diversification Strategies on the Performance of Manufacturing Firms in Kiambu County, Kenya

Abstract

The study investigates the influence of key growth strategies, product diversification, on the performance of manufacturing firms in Kiambu County, Kenya. Employing a positivist philosophy and a quantitative descriptive research design. The study sampled 201 employees across five major manufacturing firms and used structured questionnaires to collect data. Analysis using SPSS demonstrates a statistically significant positive relation between each growth strategy and firm performance. Results reveal that product diversification significantly enhances firm performance by improving revenue growth, operational efficiency, and market competitiveness. Product diversification explains 51.5% of the variance in firm performance measures. The findings emphasize the pivotal role of integrated growth strategies in boosting revenue, improving operational efficiency, and enhancing market competitiveness. The study concludes by outlining recommendations for firms to prioritize technological investments, explore new markets strategically, and diversify product offerings, while calling on policymakers to foster innovation friendly industrial policies and infrastructure development.