The Influence of Competitive Aggressiveness on the Performance of Textile-Based Manufacturing Small Enterprises in Kenya

Abstract

This study investigates the impact of competitive aggressiveness on the performance of textile-based manufacturing small enterprises in Kenya. Employing a mixed-methods approach, the research combines quantitative data from surveys with qualitative insights from interviews to assess how aggressive competitive strategies influence key performance indicators such as sales growth, profitability, and market share. The findings reveal a significant positive correlation (r = 0.58, p < 0.01) between competitive aggressiveness and overall firm performance. Enterprises classified as highly competitive reported an average annual sales growth of 30%, while those exhibiting lower levels of aggressiveness showed only 15%. Regression analysis indicates that competitive aggressiveness accounts for approximately 55.8% of the variance in performance, with a standardized coefficient (Beta) of 0.747, underscoring its substantial role.Qualitative insights from respondents highlight that firms employing aggressive marketing tactics, competitive pricing, and adaptive strategies to competitor actions are more effective in improving their market positions. However, challenges such as limited financial resources and market saturation hinder many SMEs from fully implementing aggressive strategies. The study emphasizes the need for a competitive mindset among entrepreneurs and suggests that policymakers can bolster this by fostering environments that promote innovation and facilitate access to resources. In conclusion, the research demonstrates that competitive aggressiveness significantly influences the performance of textile-based manufacturing SMEs in Kenya. Recommendations include providing financial assistance and training for effective marketing strategies, encouraging investment in market research, and promoting collaboration with industry associations. By adopting these measures, both entrepreneurs and policymakers can enhance competitiveness and sustainability within the textile sector, ultimately contributing to economic growth in Kenya.

Keywords: Competitive Aggressiveness, Textile-Based Manufacturing, Small Enterprises

DOI: 10.7176/EJBM/17-2-01

Publication date: February 28^th 2025