An Assessment of Resource Based Competitive Strategy on Operational Performance: A Case of Mumias Sugar Company, Kenya

Abstract

The fierce competition as a result of sugar sectorial and global pressures leads to rivalry behaviour. This leads to jostling for resources or product market share. For firms to sustain competitive position over rivals, they engage in competitive activities characterized by actions and/or responses. The purpose of the study was to analyze the relationship between resource based competitive rivalry activities and operational performance of Mumias Sugar Company in Kenya. Specifically, the study sought to examine the relationship between deny attack actions on the operational performance of Mumias Sugar Company. The study was hinged on the factor-market rivalry (FMR) theory. The study adopted descriptive correlational research design. The target population was forty-four (44) section heads, and a census inquiry was done. Using a five – point Likert scale standardized questionnaires, primary data was collected from key informants. Secondary data was extracted from annual reports, publications and documentary analysis to gather background information by reviewing relevant literature. The data was analyzed using inferential statistics of regression and correlation as well as descriptively for comparisons. Study results were presented using frequency tables and charts. The findings the study revealed that the deny action strategy had a 21.44 percent (R² = 0.2144) effect on company operations performance. This research will be useful to Mumias Sugar Company and any other organizations operating in a factor-market rivalry environment.

Key words: Competitive, deny strategy, operational performance.