DETERMINANTS OF DIVERSIFICATION STRATEGY IMPLEMENTATION AMONG CONSUMER GOODS AT UNILEVER KENYA LIMITED COMPANY

Full text

DETERMINANTS OF DIVERSIFICATION STRATEGY IMPLEMENTATION AMONG CONSUMER GOODS AT
UNILEVER KENYA LIMITED COMPANY
Muyera, C., & Mukanzi, C.

Page: - 1345 -
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
Vol. 7, Iss. 4, pp 1345 – 1355 November 19, 2020. www.strategicjournals.com, ©Strategic Journals
DETERMINANTS OF DIVERSIFICATION STRATEGY IMPLEMENTATION AMONG CONSUMER GOODS AT
UNILEVER KENYA LIMITED COMPANY
Muyera, C., 1* & Mukanzi, C. 2
1* Master Student, Jomo Kenyatta University of Agriculture and Technology [JKUAT], Kenya
2 Ph.D, Lecturer, Jomo Kenyatta University of Agriculture and Technology [JKUAT], Kenya
Accepted: November 18, 2020
ABSTRACT
The overall objective of this study was to examine the determinants of diversification strategy
implementation among consumer goods companies in Kenya the focus being Unilever Kenya. The study
reached out to 43 respondents thus department managers, management directors and Unilever Kenya Board
of Directors. This study adopted a cross-sectional research design. The research focused on primary data that
was collected from questionnaires distributed to the target groups. This study collected both qualitative and
quantitative data. The qualitative data collected was subjected to content analysis. The researcher used
descriptive and inferential statistics to analyse the quantitative data. The findings indicated that human
resources capacity, financial resources, environmental monitoring and organizational culture have an
influence on diversification strategy implementation. From the study findings it was concluded that the
purpose of implementing diversification strategies is that managers and employees collaborate to perform
formulated strategic planning, implementation of diversification success depends to motivating employees.
Business owners need to undertake a comprehensive and clinical review of their present fiscal standing and
future prospects before expanding a business into a new area. Firms are more innovative than are non-group
firms, especially in industries that rely more on external funding and in groups with more diversified capital
sources before of extensive environmental monitoring. Organizational culture leads to fundamental changes
in many aspects of the organization, including organizational structure, human resource selection and
deployment, job characteristics, performance measures and the reward system which might have an
influence on diversification strategy implementation. The study recommended that it is necessary for
companies to have regular training before embarking on strategy implementations and they need set aside
enough capital to sustain diversification strategy implementation. Companies need to carry out
environmental appraisal to assess the suitability of the environment to support diversification strategy
implementation and companies need to have cultural traits that provide leeway to diversification strategy
implementation resulting in organizational effectiveness.
Keyword: Diversification Strategy, Human Resource Capacity, Financial Resources, Environmental
Monitoring, Organizational Culture
CITATION: Muyera, C., & Mukanzi, C. (2020). Determinants of diversification strategy implementation
among consumer goods at Unilever Kenya Limited Company. The Strategic Journal of Business & Change
Management, 7 (4), 1345 – 1355.

Page: 1346
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
INTRODUCTION
The goal of strategy is to result in nice situations
inside which advantageous situations will occur.
The idea behind having a strategy is to ensure that
there is critical factor of handling the dynamics and
complexity of the sector and enterprise
surroundings have increased. The time period
approach is used to provide an explanation for each
the strategies as an example organizational
restructuring and the consequences of selected
long-time period directions. It may be both a
conscious, deliberate interest and a sequence of
events, which result in a. applicable goal. A strategy
includes an assessment of the possibly of influences
of each of the outside and inner organizational
surroundings and the long-time period desires of
the organization (Andreas, 2009). From the attitude
of classical strategic control idea, strategy is taken
into consideration and a planned making process,
initiated via way of pinnacle control, primarily
based on a tricky enterprise evaluation and geared
toward designing a cohesive grand strategy for the
corporation.
In recent years companies throughout the globe
have sought to create extra organizational flexibility
in responding to environmental turbulence via way
of shifting from hierarchical systems to greater
modular forms (Balogun and Johnson, 2004).
Responsibility, sources and strength in companies
has been the challenge of decentralization and
delayering. Given an intensifying aggressive
surroundings, it's often asserted that the vital
determinant inside the fulfillment and, doubtlessly,
the survival of the company is the successful
implementation of advertising and marketing
techniques (Chebat, 1999). The function and duties
of these personnel charged with strategy
implementation duties, the mid-stage managers, in
those new restructured companies is below
scrutiny. Globally, strategy implementation is slowly
deliberating useful regions along with accounting,
advertising and marketing, human control, or data
control (Naranjo-Gil & Hartmann, 2006). The
subsequent fashion is the persevering with
emphasis at the well-established elements of
strategy implementation along with shape, lifestyle
or organizational strategies. For instance, Olson et
al. (2005) reiterates the importance of
organizational profile and approaches in strategy
implementation. The third trend stated is of
reporting research in particular socio-monetary
contexts along with the ones in particular nations
(Wu et al., 2004) or growing economies (Brines et
al., 2007).
In growing nations like Kenya there are first-rate
modifications taking the inner and outside
environments of enterprises. These modifications
carry with them a big selection of possibilities and
therefore, organizations need to be innovative and
innovate to stay competitive and aggressive. Tim
Hindle (2009) states that, sometimes companies
which can be in most cases in a single line end up
approximately setting all their business eggs into
one basket and their heads are become the
portfolio idea of investment, wherein publicity to
hazard is decreased through the possession of an
extensive variety of shares. Kinicki (2008) argues
that, the solution to the dangers of single-product
approach is diversification and running numerous
organizations with a view to unfold the dangers.
Diversification is visible as a boom approach that
refers to each the qualification of relatedness
among a company's enterprise units, this is
associated as opposed to unrelated and the mode
wherein diversification is performed this is inner
improvement as opposed to acquisition (Marlin, et
al 2004).
Diversification strategy implementation can be
followed as a hazard-discount approach or an
possibility to faucet into new markets and
merchandise on the way to generate greater sales
simply in case the authentic markets and
merchandise prevent developing or are hit by
means of competition. First of all, a corporation can
benefit from diversifying its techniques. However,
companies miscalculate the profitability of an
undertaking a venture as opposed to the cost of

Page: 1347
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
moving into it (Sussland, 2013). Diversification
seeks to grow profitability through extra income
acquired from new merchandise and new markets.
It includes venturing out into new enterprise, new
merchandise or new markets to grow profits. It is a
shape of boom approach related to a tremendous
growth inside the overall performance targets and
beyond overall performance records (Andreas,
2009). Diversification permits a corporation to
undertake new traces of enterprise which can be
distinct from the prevailing operations. Companies
hire distinct diversification techniques to increase
companies' operations by means of including
markets, merchandise, services, or ranges of
manufacturing to the prevailing enterprise for
higher results.
Motivation for Research
The tight competition amongst corporations in
Kenya, is forcing companies to enlarge their
commercial enterprise scope in addition to
merchandise. These way corporations are going to
all extremes to make sure they survive the
turbulent times. The adoption of diversification
strategy ought to be properly coordinated to suit
into the organization’s vision. Lack of clear
information of commercial enterprise
diversification strategy with the aid of using
corporation managers will bring about wrong
implementation. In some cases, the diversifying
organization will frequently attempt to finish the
deal too fast earlier than when different capacity
shoppers start a bidding war resulting in managers
focusing at the appealing functions of a candidate,
whilst giving much less interest to the terrible
functions of the transaction. Diversification into
new markets and manufacturing regions may be a
thrilling and worthwhile step for commercial
enterprise owners (Doving & Gooderham, 2008).
Many empirical studies have been done on
diversification however none has specific context
and idea from what the current study examine. The
strategy of product diversification of a corporation
can be defined in phrases of branching-out from its
present dominant key competences, and the
software of those to the advertising and marketing
of latest and progressed merchandise and services
(Meyer & Utterback, 2003). Oluoch (2000) surveyed
the connection among enterprise diversification,
profitability of commercial banks in Nairobi and
determined that the two relationships had a greater
yield scale in an enterprise. Wambua (2004) studied
elements influencing enforcing diversification in
insurance corporations in Kenya and determined
that incentives, assorted training and improvement,
greater clients and attain popularity have been the
outstanding elements. More recently, Kamanda
(2012) did an examination on Kenya Commercial
Bank with the goal of figuring out the elements that
have an effect on its regional growth strategy. His
examination, however, did cover the issues of
strategy implementation. Situma (2013) covered
the same corporation however centered on its
turnaround strategy. Muguni (2007) studied the
role of executive development in strategy
positioning. The purpose of this study was to find
out the determinants of diversification strategy
implementation. The study focused on the broad
objective of examining the determinants of
diversification strategy implementation among
consumer goods companies in Kenya the focus
being Unilever Kenya.
LITERATURE REVIEW
Theoretical Review
The current study was guided through three
theories namely stakeholder theory, systems theory
and the Higgins’s Eight (8) S Model. Stakeholder
theory starts with the belief that value is always and
explicitly part of doing business. It asks managers to
articulate the shared experience of the value they
devise and what brings its center stakeholders
collectively. Systems Theory is the trans-disciplinary
look at the summary agency of phenomena,
unbiased in their substance, kind or spatial or
temporal scale of existence. It investigates each of
the standards not unusual places to all complicated
entities and the fashions which may be used to

Page: 1348
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
explain them. The Higgins’s Eight (8) S Model was
recommended by Higgins on the perspectives that
the executives should align the move practical
organizational elements; structure, system and
procedures, management style, body of workers,
sources and shared values with the brand new
method in order that the method opted can
succeed.
Determinants of Diversification Strategy
Implementation
Perhaps the maximum vital useful resource for
imposing strategy is human capital. All of the skills
referred to in advance require awesome human
capital for them to be enacted successfully. Thus,
the company should have interaction in powerful
human resource control practices that attract,
motivate, develop, and hold the best human
expertise available. As a result, powerful body of
workers control is crucial to a hit strategy
implementation. Among the important things of
workers troubles is for corporations in advanced
economies unexpectedly ageing workers and the
chronic underrepresentation of women in top-
degree government positions. As human beings
age, they enjoy numerous adjustments that could
have associated implications (Wang, Choi, Wan, &
Dong, 2016). Lawler and Mohrman (2000) declares
that the Human Resource feature must be placed
and designed as a strategic commercial enterprise
accomplice that participates in each strategy
components and implementation. In different
words, the Human Resource feature must be placed
as an accomplice that participates within the
strategy components procedure and leads-or as a
minimum in-the general implementation
procedure.
Strategy operationalization through resource
allocation (allocation of money, good enough
employees and personnel involvement to put in
force new techniques) and running procedures
(personnel training, policies, guiding ideas to make
certain compliance to corporation’s strategy,
procedures, ability of control, strategic steering of
pinnacle control) have an effect on overall
performance to various levels , Strategy
institutionalization, through communication and
praise machine (clear dreams and objectives,
strategy direction, process virtually communicated,
overall performance reputation system, attempt
primarily based totally rewards and rewards system
related to new strategy have an effect on overall
performance differently (Kipkorir & Ronoh, 2017).
The general surroundings consist of things that may
have dramatic consequences on organization
approach. Typically, an organization has little ability
to expect tendencies and occasions within the
general surroundings or even much less ability to
govern them (Dess, Lumpkin, and Eiser, 2008).
According to Thomas, Peteraf, Gamble and
Strickland (2012) each corporation operates in a
massive surroundings that is going nicely past
simply the enterprise wherein it operates; for this
reason macro surroundings consists of seven
important components: populace demographics;
societal values and lifestyles; political, legal and
regulatory elements; the natural surroundings and
ecological elements, technological elements;
preferred monetary situations; and international
forces.
Organization culture is classified into three levels
which might be the artefacts, prime values and the
principal assumptions. There are direct and oblique
mechanisms inside agencies. The organizational
culture version is without delay inspired through
direct mechanisms. This consists of exemplary
behaviour, opinions, reputation and appointments.
Indirect mechanisms no longer affect the
organizational culture without delay but they may
be determinative. This consists of the challenge of a
business enterprise, formal guidelines, company
identity, rituals and design. People must be
conscious that cultural change is a metamorphosis
procedure; behaviour need to be unlearned first
earlier than new behaviour may be found out in its
place. When a distinction arises among the
preferred and the winning way of life, cultural

Page: 1349
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
interventions must take place. The obligation lies
with senior control supported through an
employee’s department. This calls for a complete
approach (Mullins, 2005).
Implementation of Diversification Strategy
According to Calori and Harvatopoulos (1988), there
are dimensions of rationale for diversification. First,
the diversification can be protective or offensive.
Defensive motives can be spreading the hazard of
marketplace contraction, or being compelled to
amplify while modern-day product or modern-day
marketplace orientation appears to offer no
similarly possibilities for growth. Offensive motives
can be conquering new positions, taking
possibilities that promise more profitability than
diversification possibilities, or the usage of retained
coins that exceeds general diversification needs.
The second size entails the predicted effects of
diversification. Management may also assume
exceptional financial value (growth, profitability) or
first and principal exceptional coherence and
complementarities with their current activities
(exploitation of know-how, more efficient use of
available resources and capacities). In addition,
groups may discover diversification simply to get a
precious evaluation among this strategy and
diversification.
Diversification strategy implementation has mayor
types: associated and unrelated diversification.
Related diversification represents a strategy while
company operates in more than one industries, or
companies, that have a few linkages with the
company’s present enterprise. However, there are
numerous motives while the implementation of
associated diversification strategy may be
problematic. First, the time and fee concerned in
pinnacle control on the company stage who seeks
to guarantee that the advantages of connectivity
are created through the sharing or moving among
enterprise units. Second, it's far hard to share
sources with different enterprise units, or greater
hard to regulate managers to company policies,
specifically while they may be influenced and
rewarded for impartial overall performance in their
enterprise units (Johnson, Scholes & Whittington,
2005).
METHODOLOGY
This study adopted a cross-sectional research
design which allows one to collect a lot of data
within a particular point in time. The population for
this study consisted of all 50 top employees in the
following three categories: Department Managers
28, Management Directors 14 and Unilever Board
of Directors 8. The research focused on primary
data that was collected from questionnaires
distributed to the target groups.
This study collected both qualitative and
quantitative data. The qualitative data collected
was subjected to content analysis. On the other
hand, the researcher used descriptive and
inferential statistics to analyse the quantitative
data. The multiple linear regression was used to
explain the relationship between the dependent
variable diversification strategy implementation)
and four independent variables (human resource
capacity, financial resources, environmental
monitoring and organizational culture). The
correlation was performed to show whether and
how strongly pairs of variables in this study were
related.
RESULTS AND DISCUSSIONS
Correlation analysis was used in this study to
measure the degree of influence that existed
among the variables of the study. The use of
correlation analysis enabled the researcher to know
the direction and the relationship/influence of the
degree between the study variables that were
reviewed. This study results were as illustrated in
Table 1.

Page: 1350
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
Table 1: Correlation Analysis
Diversification
strategy
implementation
Human
resource
capacity
Financial
resources
Environmental
monitoring
Organizational
culture
Diversification
strategy
implementation
Pearson
Correlation
1
.717**
.174
.830**
.718**
Sig. (2-tailed)
.000
.264
.000
.000
N
43
43
43
43
43
Human resource
capacity
Pearson
Correlation
.717**
1
.183
.777**
.661**
Sig. (2-tailed)
.000
.240
.000
.000
N
43
43
43
43
43
Financial
resources
Pearson
Correlation
.174
.183
1
.119
-.119
Sig. (2-tailed)
.264
.240
.448
.447
N
43
43
43
43
43
Environmental
monitoring
Pearson
Correlation
.830**
.777**
.119
1
.721**
Sig. (2-tailed)
.000
.000
.448
.000
N
43
43
43
43
43
Organizational
culture
Pearson
Correlation
.718**
.661**
-.119
.721**
1
Sig. (2-tailed)
.000
.000
.447
.000
N
43
43
43
43
43
**. Correlation is significant at the 0.01 level (2-tailed).
As shown from the study results human resource
capacity had a strong positive correlation of 0.717
with diversification strategy implementation. The
study results show that financial resources had a
weak positive correlation of 0.174 with
diversification strategy implementation. Similarly
the study results showed that environmental
monitoring had a strong positive correlation of
0.830 with diversification strategy implementation.
The study established that organization culture had
a strong positive correlation of 0.718 with
diversification strategy implementation. The study
established that all the variables other than
financial resources were significant at Sig. =0.000.
The regression analysis model summary for this
study was as illustrated in Table 2.
Table 2: Model Summary
Model
R
R Square
Adjusted R Square
Std. Error of the Estimate
1
.859a
.738
.711
.53211
a. Predictors: (Constant), Human resource capacity, Financial resources, Environmental monitoring,
Organizational culture
The study results as shown in Table 2 indicated that
the relation to the Coefficient of Multiple
Determination R Square (R2) was 0.738 the
implication being that the regression line is of “high
goodness of fit” which explains up to 73.8% of the
variation in diversification strategy implementation
at Unilever Kenya while 26.2% can be attributed to
factors not covered in this paper.
In determining the effects of combined predictor
variables on the dependent variable, this study
applied the Analysis of Variance (ANOVA). The
study results were as illustrated in Table 3.

Page: 1351
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
Table 3: ANOVA
Model
Sum of Squares
df
Mean Square
F
Sig.
1
Regression
30.357
4
7.589
26.804
.000b
Residual
10.759
38
.283
Total
41.116
42
a. Dependent Variable: Diversification Strategy Implementation
b. Predictors: (Constant), Human resource capacity, Financial resources, Environmental monitoring,
Organizational culture
The study results as indicated in Table 3 showed
that the F static was 26.804 with a p-value of 0.000.
The implication of the study results was that the
combined influence on determinants of
diversification strategy implementation significant
owing to the fact that the p-value is less than the
alpha value.
Table 4: Regression Model Coefficients
Model
Unstandardized Coefficients
Standardized Coefficients
t
Sig.
B
Std. Error
Beta
(Constant)
.510
.549
.930
.358
Human resource capacity
.068
.118
.080
.574
.569
Financial resources
.155
.108
.129
1.437
.159
Environmental monitoring
.459
.125
.544
3.683
.001
Organizational culture
.265
.121
.288
2.196
.034
a. Dependent Variable: Diversification Strategy Implementation
The following hypotheses were tested using simple
regression model to satisfy the requirements of the
study objectives. The overall F-statistic was 26.80
with p=0.569>0.05 suggesting that human resource
capacity had no statistically significant influence on
diversification strategy implementation at Unilever
Kenya. The overall F-statistic was 26.80 with
p=0.159>0.05 suggesting that financial resources
had no statistically significant influence on
diversification strategy implementation at Unilever
Kenya. The overall F-statistic was 26.80 with p-value
0.001<0.05 suggesting that environmental
monitoring had a statistically significant influence
on diversification strategy implementation at
Unilever Kenya. The overall F-statistic was 26.80
with p=0.034<0.05 suggesting that organizational
culture had a statistically significant influence on
diversification strategy implementation at Unilever
Kenya. As indicated by the coefficients of the model
in Table 4, the equation Y =β0 + β1HRC + β2 FIR +
β3ENM +……… β4OC
Y = 0.510 + 0.068HRC + 0.155FIR + 0.459ENM +
0.265OC
CONCLUSION AND RECOMMENDATIONS
From the study findings it was concluded that
human resources capacity influences diversification
strategy implementation. The purpose of
implementing diversification strategies is that
managers and employees collaborate to perform
formulated strategic planning, implementation of
diversification success depends to motivating
employees which is the art of managers and that
managers should notice to skilled employees as the
most important strategic resources and the secret
of organization's growth.Financial resources have
an influence on diversification strategy
implementation. Financial resources influence
diversification strategy implementation in the
company since diversification depends on financial
health of a firm. Therefore, business owners need
to undertake a comprehensive and clinical review of

Page: 1352
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
their present fiscal standing and future prospects
before expanding a business into a new area.
It was concluded that environmental monitoring
influences diversification strategy implementation.
Environment monitoring is a core component in
diversification strategy implementation since firms
accumulating the capability of repeating entry into
new businesses, which can be viewed as valuable,
rare, and inimitable is challenging. Firms are more
innovative than are non-group firms, especially in
industries that rely more on external funding and in
groups with more diversified capital sources before
of extensive environmental monitoring.
Organizational culture has an influence on
diversification strategy implementation. It is the
glue that holds the organization together and for
others, the compass that provides direction and
when implementing strategy it influences how
management will grow the business, how it will
build loyal clientele and out-compete its rivals.
Organizational culture leads to fundamental
changes in many aspects of the organization,
including organizational structure, human resource
selection and deployment, job characteristics,
performance measures and the reward system
which might have an influence on diversification
strategy implementation.
As a result of the findings of this study the following
recommendations are proposed to consumer goods
companies in Kenya in relation to the determinants
of diversification strategy. Companies need to have
qualified employees to support diversification
strategy implementation in the company and they
need to be trained on the company trains
employees in the adoption and implementation of
diversification strategies. Therefore, it is necessary
for companies to have regular training before
embarking on strategy implementations.
Diversification strategies require huge capital to
implement therefore companies need to be well
prepared financially before thinking on
diversification strategy implementation. They need
set aside enough capital to sustain diversification
strategy implementation. Companies need to carry
out environmental appraisal to assess the suitability
of the environment to support diversification
strategy implementation. Thus, it is not only
necessary but important for companies to conduct
competitive analysis to find out gaps to fill and
frequent environmental scanning to assess viability
of its products and services to consumers in regard
to diversification strategy implementation.
Organizational culture is a key element of strategy
implementation process and that organizational
culture is a key element of strategy implementation
process. Therefore, it is recommended that
companies need to have cultural traits that provide
leeway to diversification strategy implementation
resulting in organizational effectiveness.
REFERENCES
Almeida, H. & Wolfenzon, D., (2006). ‘A theory of pyramidal ownership and family business groups’, Journal
of Finance 61(6), 2637–2680.
Ansoff, I. (1957). Strategy of Diversification. Harvard Business Review. New York: McGraw Hill
Aryee, S., Walumbwa, F. O., Seidu, E. Y. M., & Otaye, L. E. (2016). Developing and leveraging human capital
resource to promote service quality: Testing a theory of performance. Journal of Management,
42(2), 480-499.
Bakker, A. B., Demerouti, E., & Euwema M. C. (2005). Job Resources Buffer the Impact of Job Demands on
Burnout. Journal of Occupational Health Psychology, 10, 170-180.

Page: 1353
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
Balogun, J., & Johnson, G. (2004), 'Organizational restructuring and middle manager sense making' Academy
of Management Journal, 47 (4), 523-549
Bates, K. A. & Amundson, S. D. & Schroeder, R. G. & Morris, W. T. (1995). The Crucial Interrelationship
Between Manufacturing Strategy and Organizational Culture. Management Science 41 (19) 1565 –
1580
Belenzon, S., & Berkovitz, T. (2010). Innovation in business groups. Management Science, 56: 519-535.
Berger, P., & Ofek, E. (1995). Diversification's effect on firm value. Journal of Financial Economics, 37 (1): 39-
65
Bolman, L. G., & Deal, T. E. (2008). Reframing organizations: artistry, choice, and leadership. 4th ed. San
Francisco: Jossey-Bass
Burch, T.R., & Nanda, V. (2003). Divisional diversity and the conglomerate discount: the evidence from spin-
offs. Journal of Financial Economics, 70 (1): 69-98
Collis, J. & Hussey, R. (2014) 'Business Research: A Practical Guide for Undergraduate and Postgraduate
Students'. Basingstoke: Palgrave Macmillan
Cooper, D. & Schindler, P. (2011) Business Research Methods. (11th Edition), McGraw Hill, Boston.
Creswell, J.W. (2009). Research Design Qualitative, Quantitative, and Mixed Method Approaches. Sage
Publications, Thousand Oaks.
Demerouti, E., Bakker, A.B., Nachreiner, F. and Schaufeli, W.B. (2001a), “The job demands-resources model
of burnout”, Journal of Applied Psychology, Vol. 86, pp. 499-512.
Denti, L., & Hemlin, S. (2012). Leadership and innovation in organizations: A systematic review of factors that
mediate or moderate the relationship. International Journal of Innovation Management, 16, 1-20.
Dess, G.G., Lumpkin, G.T. and Eisner, A.B. (2008). Strategic Management: Text and Cases. 4th Edition,
McGraw-Hill/Irwin, Boston.
Doving, E., & Gooderham, P. N. (2008). Dynamic capabilities as antecedents of the scope of related
diversification: The case of small firm accountancy practices. Strategic Management Journal, 29:
841-857.
Galunic, D., & Eisenhardt, K. (2001). Architectural innovation and modular corporate forms. Academy of
Management Journal, 44: 1229-1249
Goffee, R. & Jones, G. (1996) What Holds the Modern Company Together? Harvard Business Review, 74, 133-
148.
Grossman, V. (2007). “Firm Size and Diversification: Multiproduct Firms in Asymmetric Oligopoly.”
International Journal of Industrial Organization 25(1): 51- 67
Haynes, M., Thompson, S., & Wright, M. (2003). The determinants of corporate divestment: evidence from a
panel of UK firms. Journal of Economic Behavior & Organization, 52(1), 147-66.
Hitt, M. A., Bierman, L., Shimizu, K., & Kochhar, R. (2001). Direct and Moderating Effects of Human Capital on
Strategy and Performance in Professional Service Firms: A Resource-Based Perspective. Academy of
Management Journal, 44(1), 13–28.

Page: 1354
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
Hitt, M.A., Bierman, L., Uhlenbruck, K. & Shimizu, K. (2006). The Importance of Resources in the
Internationalization of Professional Service Firms: The Good, the Bad, and the Ugly. Academy of
Management Journal, 49, 1137-1157.
Imen, K. E., & Souad, S. (2011). Corporate diversification and earnings management, Review of Accounting
and Finance, 10 (2): 176 – 196
Jackson, S., Schuler, R., & Jiang, K. (2014) An Aspirational Framework for Strategic Human Resource
Management. The Academy of Management Annals, 8, 1-56.
Johnson, G., & Scholes K., (2002). Exploring Corporate Strategy: Texts and Cases, Prentice Hall, New Delhi,
6th edition
Karemu C. (1993). The state of strategic management practices in the retailing sector: The case of Super
markets in Nairobi, Unpublished Thesis, University of Nairobi
Kothari, C.R. (2009) "Research Methodology: Methods & Techniques" (Second Revised Edition), New Age
International Publishers, New Delhi.
Kothari, C.R. (2004). Research Methodology Methods and Techniques. (2nd Edition), New Age International
Publishers, New Delhi.
Kotter, J.P. & Heskett, J.L. (1992). Corporate Culture and Performance. Free Press, New York.
Kruger, D. J. (2003). Integrating quantitative and qualitative methods in community research. The
Community Psychologist, 36, 18-19
Lawler, E. E., & Mohrman, S. A. (2000). Beyond the visions: What makes HR effective? Human Resource
Planning, 23(4), 10-20.
Luo, Y. (2002). “Product Diversification in International Joint Ventures: Performance Implications in an
Emerging Market.” Strategic Management Journal 23(1):1- 20.
Miller, D. J. (2006). Technological diversity, related diversification, and firm performance. Strategic
Management Journal, 27: 601-619.
Naranjo-Gil, D. & Hartmann, F. (2006). Management accounting systems, top management team
heterogeneity and strategic change, Accounting, Organizations and Society 32: 735–756.
Olson,E.M., Slater, S.F. & Hult,G.T.M. (2005). The Importance of Structure and Process to Strategy
Implementation, Business Horizon, 48, 47-54.
Orodho, A.J., & Kombo, D.K. (2002). Research Methods. Nairobi: Kenyatta University, Institute of Open
Learning.
O'Regan, N., & Ghobadian, A. (2007). Formal strategic planning: annual raindance or wheel of success?.
Strategic Change, 16(1-2), 11-22.
Pearce, J.A., & Robinson R.B., (2003). Strategic Management; Strategy Formulation, Implementation and
Control, Irwin, Homewood, Illinois, 8th edition,
Pennings, J., Barkema, H., & Douma, S. (1994). Organizational learning and diversification. Academy of
Management Journal, 37: 608-640
Piscitello, L. (2004). Corporate diversification, coherence and economic performance. Industrial and
Corporate Change, 13: 757-787.

Page: 1355
The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
Rajan, R., Servaes, H., & Zingales, L. (2000). The cost of diversity: the diversification discount and inefficient
investment. Journal of Finance, 55(1), 35-80
Ronoh T.K., Mumiukha C.K., Sang A.K. (2013) Entrepreneurship as an Alternative Approach to Funding of
Public Universities in Kenya. In: Funding Higher Education in Sub-Saharan Africa. Palgrave Macmillan,
London.
Sakarya, S., Eckman, M., Hyllegard, K.H. (2007), "Market selection for international expansion: assessing
opportunities in emerging markets". International Marketing Review,24 (2), 208-38.
Silva, W. M. (2005). “Effects of Diversification Strategy on the value and the Financial Performance of
Brazilian Industries.” Journal of Strategic Management 12: 79-98.
Sirmon, D. G., & Hitt, M. A. (2009). Contingencies within dynamic managerial capabilities: Interdependent
effects of resource investment and deployment on firm performance. Strategic Management
Journal, 30(13), 1375–1394.
Taslak, S. (2004). Factors restricting success of strategic decisions: Evidence from the Turkish textile industry.
European Business Review, 16(2), 152-164.
Thomas, S. (2002). Firm diversification and asymmetric information: evidence from analysts' forecasts and
earnings announcements. Journal of Financial Economics, 64 (3), 373-93
Wilson, J. (2010). Essentials of Business Research: A Guide to Doing Your Research Project. SAGE Publications.
Yiu, D. W., Bruton, G. D., & Lu, Y. (2005). Understanding business group performance in an emerging
economy: Acquiring resources and capabilities in order to prosper. Journal of Management Studies,
42: 183-206.
Yiu, D. W., Lu, Y., Bruton, G. D., & Hoskisson, R. E. (2007). Business groups: An integrated model to focus
future research. Journal of Management Studies, 44: 1551-1579.