The Influence of Market Orientation on Performance of Private Security Firms in Kenya
Date
2020-02Author
Onditi, Evans Ojiambo
Kibera, N. Francis
Aranga, M. Joseph
Iraki, X. N
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The objective of the study was to establish the influence of market orientation on the performance
of private security firms in Kenya. Despite the significant value of private security firms to the
Kenyan economy, the market orientation construct has not been studied in the context of private
security industry in Kenya. Many studies have been done on market orientation and firm
performance with the findings indicating that market orientation has a positive and significant
effect on firm performance. However, other studies by have reported findings of a negative effect
of market orientation on firm performance while others have found market orientation having an
insignificant impact on firm performance. The inconsistency of research findings among authors
was an indication that the available research evidence on the link between market orientation and
performance of business organizations is inconclusive. Therefore there was need for this study to
be conducted. The data was collected from key informants in the private security firms and they
were either the marketing manager of the Chief Executive Officer of the firms. The Resource-
Advantage theory and the Resource Based Theory were used to provide theoretical perspectives
to the study. The study targeted 39 firms that were members of the Kenya Security Industry
Association (KSIA) in a census study that was cross-sectional in nature and 37 firms participated
in the study and this translated to a 95% response rate. Data was collected from the respondents
using a semi-structured questionnaire whose measurement scales met all the requirements of
reliability and validity tests. Descriptive and inferential statistics was used to gain a good understanding of the respondent and firm characteristics and simple linear regression was used to
establish the relationship between market orientation and performance. Results of the regression
analysis indicated that market orientation had a positive and significant effect on both nonfinancial
and financial performance of the private security firms. The study recommended that
managers of private security firms and firms in other industries should view market orientation as
a resource that can enhance the firms’ ability to achieve sustainable competitive advantage. It also
recommended that management of firms should invest their time in developing a market
orientation culture among all employees of their firms because this will enhance the interfunctional
co-ordination that is required when developing and implementing strategies. A
longitudinal study was suggested since the industry structure has been significantly affected by the
strong government regulation through the Private Security Regulatory Authority.
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- Journal Articles (BE) [396]
