Effect of concentric strategy on the performance of Commercial State Corporations in Kenya

Abstract

The study sought to assess the effect of concentric strategy on the performance of Commercial State Corporations in Kenya. A cross-sectional correlational design was adopted as the study design. The target population was 1,026 senior managers of the Commercial State Corporations. The sample size was 99 senior managers in Commercial State Corporations. Primary data was gathered using a structured questionnaire. Collected data was analysed using descriptive data analysis techniques (Mean, Standard Deviation, Maximum and Minimum) and regression analysis. The results were presented using tables and figures. The study established a significant effect of concentric strategy on the financial, customers and internal business process performance of Commercial State Corporations in Kenya (β =0.829, p=0.000<0.05; β =0.648, p=0.000<0.05). Only learning, growth, and development as a measure of a Balanced Scorecard were not affected by the concentric strategy of the Commercial State Corporations. This study concludes that the concentric strategy significantly improved the financial, customer, and internal business process performance of Commercial State Corporations in Kenya, as supported by statistical evidence. However, it had no significant effect on learning, growth, and development performance. The study recommends that Commercial State Corporations in Kenya establish policies for strategic partnerships, develop performance metrics and Key Performance Indicators, and regularly monitor progress to effectively implement concentric strategies and enhance long-term performance.