Strategic Positioning and Organizational Performance in Foreign Multinational Corporations in Nairobi County, Kenya

Rachael Gathoni Irimu, Dr. Millicent Mboya

Abstract


The presence of multinational firms operating within Kenya has witnessed a steady escalation. Notably, in 2019, the count stood at 1,035 multinational firms, marking a notable 12.5% upswing from the 920 firms reported in 2015. Nairobi City County, a pivotal nucleus of multinational activities, hosts a substantial cluster of these enterprises. This study sought to examine the influence of strategic positioning on organizational performance in foreign multinational corporations in Nairobi County, Kenya. Specifically, the study sought to establish the influence of brand strategy on organizational performance in foreign multinational corporations in Nairobi County, Kenya and to determine the influence of innovation on organizational performance in foreign multinational corporations in Nairobi County, Kenya. This study was anchored on brand theory and diffusion of innovation theory. This study used cross-sectional survey study design. The target population for this study was all the 108 multinational companies in Nairobi County Kenya. The unit of observation was finance managers, human resource manager, corporate strategy manager, operations manager, legal manager, sales and marketing manager, ICT manager and research and development manager from each of the 108 MNCs, forming a total of 8 managers from each company. Therefore, the target population for the study was 864 individuals. Managers were selected because they have the needed information on the effect of strategic positioning on performance of their multinational firms. The study adopted census sampling technique. The questionnaire was selected instrument or tool for data collection for the study. Twenty-seven questionnaires were piloted that is 10% of the study sample size. Statistical Package for Social Sciences (SPSS) were used to analyze the data. The returned questionnaires for the pilot test were 100%. The questionnaire was valid and reliable and was used to collect data for the actual study. Descriptive and inferential statistics were computed and findings presented in tables. The study concludes that brand strategy has a positive and significant effect on organizational performance in foreign multinational corporations in Nairobi County, Kenya. In addition, the study concludes that innovation has a positive and significant effect on organizational performance in foreign multinational corporations in Nairobi County, Kenya. Based on the findings, the study recommends that multinational corporations should continue to strengthen their brand strategy by ensuring that their brand message and identity are clearly articulated and consistently communicated across all markets. Establishing brand guidelines that apply internationally but allow for regional customization can enhance brand recognition and trust.

Keywords: Strategic Positioning, Brand Strategy, Innovation, Organizational Performance


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