Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Effects of focus strategy on performance of PAY-AS-YOU-GO solar firms in Kenya

Author(s): Walter Odhiambo Opiyo

The rise of globalization has led to the implementation of business-level strategies in companies to achieve superior performance in a specific market or industry. These strategies include cost leadership, differentiation, and focus strategies. The study was intended to investigate the effect of focus strategy on performance of solar companies. A theoretical review was done of Michael Porter's generic strategies, this was further followed by a literature review of various authors and their views concerning solar companies adopting pay as you go business model and the business level strategies, the study also examines the performance measurement of solar companies adopting pay-as-you-go business models. The study used a descriptive research design to investigate the relationship between business-level strategies and the performance of solar companies using pay-as-you-go models in Kenya. The target population was Heads of Departments of 18 companies which are currently afloat in Kenyan Market. Census survey was conducted on the major 7 heads of department which were most similar across the solar companies in each of these companies that is; Human Resource, Sales, After sales, Marketing, Finance, Training and the Informational Technology departments thus the study targets a total of 126 participants. Data was collected through structured questionnaires administered by interviewing the respondents. The researcher employed correlation research design. It was evident from the results that Focus strategy (β = .480, p <.05) had positive significant effect on performance. The unstandardized β coefficient of cost leadership shows that unit change in the Focus strategy causes 0.437 units increase in organizational performance levels of Pay-As-You- Go solar firms in Kenya. The findings also shows that Focus strategy had positive significant effect on performance. This suggests that focus strategy has an effect on the performance of Pay- As-You-Go solar firms in Kenya. The firms should also establish more strategic partnerships and good relations for better prices and hence reducing procurements costs, it also recommended that, in order to intensify the effect focus strategy on organizational performance, and Pay-As- You-Go Solar Firms in Kenya need to focus on providing superior customer service, investing in research and development, striving to have an outstanding strong image and reputation for quality innovation.

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