Effects of Total Customer Solutions Strategic Positioning on Organizational Performance in Telecommunication Industry, in Kenya

Abstract

The purpose of this study was to examine the effect of total customer strategic positioning as envisaged in the Delta Model on Organizational performance. The target population consists of 6,149 front office employees of the four major telecommunication firms in Kenya namely Safaricom, Airtel, Orange and Equitel. The study covered five major cities and towns in Kenya namely Nairobi, Mombasa, Kisumu, Nakuru and Eldoret. Data was collected from 144 respondents drawn from a cross-section of employees specifically those in front office as they are directly involved in the day to day customer service. The response rate of the total questionnaires issued was 83%. A descriptive survey research design was used in this study. Questionnaires were used to collect the data. Analysis of the survey responses was done by means of Statistical Package for Social Sciences (SPSS). Pearson Correlation along with multiple regressions were used in data analysis and the testing of hypotheses. Pearson correlation was used to establish the association between the strategic position and organizational performance. The findings of the study revealed that total customer solution strategic option had a significant coefficient ( =0.295, p value= 0.000). This implies that total customer solutions strategic option had a positive significant effect on organization performance. The findings of the research revealed that a change in the government regulations had a positive and very significant effect on the performance of the telecommunication companies in Kenya. This is revealed by the results which shows that there is a weak, positive correlation which is significant (R = 0.358; p- value <0.05) government regulations and organizational performance of telecommunication firms in Kenya.  The study concluded that the total customer solution strategic positioning had not only a positive correlation but also significant effect on the organizational performance of the telecommunication companies in Kenya. The study also concluded that with appropriate government regulations the strategic positions studied will enhance organizational performance in the telecommunication industry in Kenya. The study recommends that managers need to focus on the use total customer strategic position in order to achieve a great organizational performance in their respective organizations. To policy makers the study recommends formulations of good and effective government regulations which in turn will enhance organizational performance.

Keywords: Total Customer Solution, Strategic positioning, Organizational performance

DOI: 10.7176/EJBM/11-6-13