Marketing Strategies, Firm Characteristics, Industry Competition and Export Performance of Fresh Produce Firms in Kenya

Abstract

The overall objective of the study was to determine the influence of firm characteristics and industry competition on the relationship between marketing strategies and export performance of fresh produce firms in Kenya. The specific objectives were: to establish the influence of marketing strategies on export performance of fresh produce firms; assess the effect of firm characteristics on the relationship between marketing strategies and export performance of fresh produce firms; examine the influence of industry competition on the relationship between marketing strategies and export performance of fresh produce firms and to determine the joint effect of marketing strategies, firm characteristics, industry competition on export performance of fresh produce firms. This study builds on export marketing literature by establishing the influence of marketing strategies, firm characteristics, industry competition on export performance of fresh produce firms. This research was anchored on the marketing mix theory and supported by the dynamic capability view and industry organization theory. A census survey was carried out on all the 100 fresh produce firms that were ordinary members of the Fresh Produce Export Association of Kenya as at 31st June 2019. Ordinary members are those actively involved in growing, consolidating and exporting of fruits, vegetables, herbs and spices. Affiliate members are the institutions that provide services such as marketing, capacity building to the ordinary members of Fresh Produce Export Association of Kenya. This study was guided by a positivist approach. A descriptive cross-sectional study design was adopted. Descriptive statistics established that a large number of the fresh produce firms were categorized as small and medium enterprises. Diagnostics tests revealed that assumptions of normality, linearity, multicollinearity and homoscedasticity were met. Results indicated that the relationship between marketing strategies and export performance was positive and statistically significant. The moderation effects of firm characteristics on the relationship between marketing strategies and export performance were statistically insignificant. Industry competition was found to have a moderating influence on the relationship between marketing strategies and export performance. The joint effect of marketing strategies, firm characteristics, industry competition on export performance was found to be positive and significant. Findings of the study made contribution to theory, policy and management practice. Specifically, this research contributes to theory by empirically examining the moderating role of firm characteristics, industry competition on the relationship between marketing strategies on export performance. This research also recommends that policy makers should lobby for regional and bilateral trade agreements that seek to increase market share for fresh produce firms. To management practice the study provides guidelines to managers on how to design and implement marketing strategies for the export market. The study had certain limitations; the cross- sectional nature of data could not measure changes in marketing strategy, firm characteristics, industry competition on export performance over a long period of time. The study focused on identifying the role of the marketing strategies within the product industry. Due to the nature of product, findings could not be generalized to the service industry which display unique characteristics such as intangibility and heterogeneity. These limitations however did not affect the robustness of the study. Future studies may include and simultaneously analyze alternative modes of foreign market entry such as licensing, joint ventures, franchising, and strategic alliances. A much broader study that includes more developing countries/multiple industries that would allow generalization of findings to larger populations.