Valley International Journal Digital Library

VIJ Digital library
Articles

Influence of Vertical Diversification on Sustainable Organizational Performance of Chartered Private Universities in Kenya

PDF
  • Agnes Mueni Mutinda,
  • Dennis Juma Okello,
  • Hesbon Otinga,
  • Daniel Kitonga
Agnes Mueni Mutinda
PhD Candidate, Jomo Kenyatta University of Agriculture and Technology, School of Business and Entrepreneurship,
Dennis Juma Okello
Lecturer, Jomo Kenyatta University of Agriculture and Technology, School of Business and Entrepreneurship
Hesbon Otinga
Lecturer, Tangaza University
Daniel Kitonga
Lecturer, Jomo Kenyatta University of Agriculture and Technology, School of Business and Entrepreneurship,
Published in : International Journal of Scientific Research and Management (IJSRM) , Vol. 12 No. 05 (2024)

Submission to VIJ 2024-05-31

Keywords

  • Diversification Strategy, vertical Diversification, Sustainable Organizational Performance, Chartered Private Universities

Copyright (c) 2024 Agnes Mueni Mutinda, Dr. Dennis Juma Okello (PhD), Dr. Daniel Kitonga (PhD), Dr. Hesbon N. Otinga (PhD)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The worldwide higher education sector has been revolutionized by globalization, adverse economic circumstances, intense industrial rivalry, and the changing demands of the contemporary customer. Private universities are compelled to reconsider their tactics. The present research investigates the implementation of vertical diversification as a crucial approach that private universities might use to achieve sustained organizational performance. The research used a cross-sectional survey approach, including the whole population of 21 private institutions in Kenya. The study used primary data collection via the use of structured research questionnaires. The acquired data was quantified and analyzed using descriptive and inferential statistics via the use of the Statistical Package for Social Sciences (SPSS). The research used Analysis of Variance (ANOVA) to determine the connection between the variables, while correlation and regression analyses were utilized to examine hypotheses and the associations among the variables. The inferential analysis demonstrated a clear and direct correlation between horizontal diversification and the sustainable performance of private institutions in Kenya. Moreover, the research confirmed a statistically significant and beneficial impact of implementing a horizontal diversification strategy on the sustainable performance of private institutions in Kenya. The study recommended that policymakers should consider formulating and implementing policies that encourage and support vertical diversification in chartered private universities in Kenya. Private universities should strategically embrace vertical diversification practices to enhance sustainable organizational performance. This involves continuous efforts to upgrade existing programs, diversify academic offerings, and establish programs that meet the evolving needs of industries.

PDF

References

  1. Abdullahi, M. A., Mohamed, Z., Shamsudin, M. N., Sharifuddin, J., & Ali, F. (2021). Organizational Support and Sustainable Entrepreneurship Performance of SMEs, the Moderating Role of Strategic Sustainability Orientation. In Sustainable Organizations-Models, Applications, and New Perspectives. IntechOpen.
  2. Ahmed, A. E.-A., Badawy, M., &Hefny, H. (2020). Exploring and Measuring the Key Performance Indicators in Higher Education Institutions. 18, 37–47.
  3. Ayden, Y., Tatoglu, E., Glaister, K. W., &Demirbag, M. (2020).Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis. Journal of International Management, 100783.
  4. Bigley, J. (2018) Sustainable Strategic Growth through Aligned Diversification. J Socialomics 7: 222. Doi:10.4172/2167-0358.1000222
  5. Child, J. (2012). Organization: A choice for man. Man and organization. London, George Allen and Unwin, 1973c, 234-255.
  6. Clark, T., Foster, L., Bryman, A., & Sloan, L. (2021). Bryman's social research methods. Oxford university press.
  7. CUE. (2020). Commission for University Education—Status Of Universities (Universities Authorized to Operate in Kenya; Available online; http://www.cue.or.ke/
  8. Egessa, R (2017). Effect of vertical diversification on organizational sustainable organizational performance of chartered private universities in Kenya.European Journal of Business and Management.ISSN 2222-1905.
  9. Ekpoh, U., & Okpa, O. (2017). Diversification of sources of funding university education for sustainability: Challenges and strategies for improvement. Journal of Education, Society and Behavioural Science, 21(2), 1-8.
  10. Gakure, R. W., Muriu, S. M., & Orwa, G. (2013). Role of performance contracting in enhancing effectiveness of performance in the civil service in Kenya, state department of infrastructure. Journal of Business and Management, 14(6), 73-82.
  11. Harney, B. (2016). Strategy and strategists. Oxford University Press, USA.
  12. Jumaah, M. H. (2019). The Role Of Core Competency Of Human Resources In Achieving Organizational Excellence: Applied Study In Public Company Of Electrical Industrial. Opción: Revista de Ciencias Humanas y Sociales, (89), 235.
  13. Junqueira, E., Dutra, E. V., Zanquetto Filho, H., & Gonzaga, R. P. (2016). The effect of strategic choices and management control systems on organizational performance. Revista Contabilidade & Finanças, 27, 334-348.
  14. Kajawo, S. C. (2020). The Phenomenon of Private Higher Education: A Review of the Rationale, the Merits and Demerits. International Journal of Research and Innovation in Social Science.
  15. Kendell, R., & Jablensky, A. (2003). Distinguishing between the validity and utility of psychiatric diagnoses. American journal of psychiatry, 160(1), 4-12.
  16. Kimani, C. W., Wagoki, J., &Okello, B. (2016). Use of integration strategy on competitive performance of rabbit meat production firms in Kenya.International Journal of Science and Research, 5(4), 928-935.
  17. Martinez-Campilo, L. (2019). DIVERSIFICATION AND PERFORMANCE OF SELECTED PHARMACEUTICAL SHOPS IN ILORIN, KWARA STATE. GPH-International Journal of Business Management, 6(07), 131-145.
  18. Masaiti, G., Mwale, N., Mkandawire, S. B., Mulenga, I. M., & Sichula, N. K. (2022). Loans and Scholarships in Africa’s Higher Education Finance: A Comparative Analysis of Capitation, Policy and Recoveries in Eleven Countries. British Journal of Education, 10(16), 67-88.
  19. Mathooko, F. M., & Ogutu, M. (2015). Porter’s five competitive forces framework and other factors that influence the choice of response strategies adopted by public universities in Kenya. International Journal of Educational Management, 29(3), 334-354.
  20. Mboya, M. A. (2019). Influence of Leadership Styles on Quality Assurance in Selected Institutions of Higher Learning in Kenya (Doctoral dissertation, JKUAT-COHRED).
  21. Morris, B. C., Fier, S. G., & Liebenberg, A. P. (2017). The effect of diversification relatedness on firm performance. Journal of Insurance Issues, 125-158.
  22. Mugenda, O. M., & Mugenda, A. G. (2003). Research methods: Quantitative & qualitative apporaches (Vol. 2, No. 2). Nairobi: Acts press.
  23. Muigai, A. (2021). Strategies That Private Universities in Kenya Use To Gain Competitive Advantage A Case Study of Daystar University (Doctoral dissertation, Daystar University, School of Business and Economics).
  24. Ndege, B. W. (2018). Effects of concentric diversification strategies on growth of cosmetic firms In Nakuru County, Kenya (Doctoral dissertation, JKUAT).
  25. Nderitu, N., Edabu, D. P., &Mugwe, D. M. C. (2018). Influence of Differentiation Planning Strategies on Sustainable organizational performance of chartered private universities in Kenya of Private Universities in Nairobi County, Kenya.6(1), 9.
  26. Nganga, O., & Kibati, P. (2016). Determinants Of Financial Sustainability In Private Middle Level Colleges In Nakuru County, Kenya. International Journal of Economics, Commerce and Management, United Kingdom
  27. Nyakora, E. M. (2017). Strategy and competitive advantage of Safaricom Limited (Doctoral dissertation, University of Nairobi).
  28. Nyangweso, B. (2018). Competitive Strategies and Performance of Financial Institutions Offering Mobile Money Transactions in Kenya (Doctoral dissertation, University of Nairobi).
  29. Odhiambo, G. (2013). Academic Brain Drain: impact and implications for public higher education quality in Kenya. Research in Comparative and International Education, 8(4), 510-523.
  30. Oloda, F. O. (2017). Vertical Integration Strategy and Organisational Survival in Manufacturing firms in Port Harcourt, Rivers state, Nigeria. International Journal of Advanced research, 3(1), 36-43.
  31. Platje, J. J., Styś, A., Will, M., & Lambrechts, W. (2022). The impact of teaching interventions in education for sustainable development–an experimental case study. The Central European Review of Economics and Management, 6(3), 69-86.
  32. Radinger-Peer, V., &Pflitsch, G. (2017).The role of higher education institutions in regional transition paths towards sustainability. Review of Regional Research, 37(2), 161-187.
  33. Sande, N. A. (2019). Influence of growth strategies on performance of public universities in Kenya (Doctoral dissertation, Strathmore University).
  34. Sanderson B, A., &Ioris, A. A. (2017). Addressing the knowledge gaps in agroecology and identifying guiding principles for transforming conventional agri-food systems. Sustainability, 9(3), 330.
  35. Santarelli, E., & Tran, H. T. (2016). Diversification strategies and firm performance in Vietnam: Evidence from parametric and semi‐parametric approaches. Economics of Transition, 24(1), 31-68.
  36. Teixeira, P. N., Rocha, V., Biscaia, R., & Cardoso, M. F. (2014). Revenue diversification in public higher education: Comparing the university and polytechnic sectors. Public Administration Review, 74(3), 398-412.
  37. Torkington, K., Stanford, D., &Guiver, J. (2020).Discourse (s) of growth and sustainability in national tourism policy documents. Journal of Sustainable Tourism, 28(7), 1041-1062.
  38. Zangoueinezhad, A., & Moshabaki, A. (2011). Measuring university performance using a knowledge‐based balanced scorecard. International Journal of Productivity and Performance Management, 60(8), 824-843.