Understanding Organizational Performance in Food Processing Firms in Nairobi City County, Kenya: Application of Competitive Benchmarking Strategies

Abstract

Aim: The study aimed to determine the effect of competitive benchmarking strategies on the performance of food processing firms in Nairobi City County, Kenya, specifically focusing on strategic positioning, technology adoption, customer-centric strategy, and strategic alliances. Methods: A descriptive research design was adopted. The study targeted 183 registered food processing firms, with 124 participants selected through stratified random sampling using Cochran’s formula. Primary data were collected from CEOs using structured questionnaires, while secondary data were obtained from annual reports, corporate publications, and audited financial statements. A pilot study was conducted to assess the validity and reliability of the research instruments. Data were analyzed using descriptive statistics and inferential statistics to examine the relationship between competitive benchmarking strategies and firm performance. Results: The results showed that competitive benchmarking strategies had strong effects on the performance of food processing firms. Strategic positioning, technology adoption, customer-centric strategy, and strategic alliances were found to affect firm performance. Conclusion: The study concludes that competitive benchmarking strategies are strongly and positively associated with organizational performance among food processing firms in Nairobi City County. Recommendation: The study recommends that food processing firms prioritize technology adoption through automation, digital transformation, advanced production systems, and data-driven decision-making. These should be done alongside strengthening strategic positioning, customer-centric initiatives, and strategic alliances to enhance innovation, competitiveness, and sustainable organizational performance.