While many studies have discussed the regulatory constraints that hinder industrial development in sub-Saharan Africa, little attention has been paid to the behavior of those firms that succeed despite a challenging business environment. The purpose of this paper is to fill this gap by focusing on specific strategies of a subset of successful industrial firms in Kenya.
The paper draws on two data sets. First, a quantitative data set based on a survey of food processing firms provides an overall profile of the sub-sector and the strategies employed by successful Kenyan firms. Second, qualitative in-depth case studies unpack the concept of strategy from the perspective of the firm, with the aim of showing the links between vision and strategy and the adaptive nature of firm strategy.
The quantitative data set reveals that the most important strategies used by agri-processing firms are differentiation strategies (selling at a premium), cost reduction strategies and niche strategies. A second major finding, based on the case study interviews, is that Kenyan firms adopt a combination of strategies to cope with the volatile business environment and grow their market. Furthermore, the qualitative interviews reveal that the vision of the leader is linked to firm strategy and firms follow an adaptive approach to strategy development.
The paper’s original contribution is the conclusion that while the existing typologies of strategy were acknowledged by respondents, their actual strategies were composites resulting from adaptive strategy development. This conclusion was made possible by the paper’s mixed methods approach.
