Effect of Cost Leadership Strategy on The Performance of Seed Companies in Trans Nzoia County, Kenya

Abstract

The study aimed at establishing the effect of cost leadership strategy on performance of seed companies in Trans Nzoia County. Implementation of the findings and recommendations of the study would be of significant to several stakeholders for instance, they would aid the government in guiding the policy framework that would enhance sustainable seed production hence national development. The study was anchored on the contingency theory and theory of Mintzberg’s 5Ps of Strategy. This study used a survey design as it assumed quantitative methods in data collection. The target population consisted of the functional heads and the employees of the five seed crop companies in Tran Nzoia a total of 553 respondents. The sample of the study was 232 respondents. The primary data was collected through questionnaires. The sample of the study was 232 respondents. The primary data was collected through questionnaires as the secondary data was collected through literature review. Prior to the commencement of data collection, the study obtained all the necessary documents, including an introduction letter from the University which will necessitate application for a permit from the National Commission for Science Technology and Innovation (NACOSTI). Respondents were then supplied with tools of data collection through the departmental heads, given time to respond to them and return them to their department heads for onward collection. Quantitative data gathered from closed ended questions were first coded and then analyzed descriptively and using inferential statistics and presented using frequency distribution and cross tabulation tables. The study found a positive and significant relationship between cost leadership strategy and organizational performance at the seed companies in Trans Nzoia County. The correlation results showed a positive and significant association between cost leadership and performance. The study concludes that there is a positive and significant relationship between production strategy and organizational performance. The study recommends that companies should have a good market research and understanding on what the critical cost factors customers appreciate and value in their product then only focus on them