Ansoff Growth Strategies and the Performance of Micro, Small and Medium-sized Milk Trading Enterprises in Garissa and Tana River Counties, Kenya: The Moderating Role of Environmental Dynamism
Abdiweli Mohamed *
School of Business and Economics, Garissa University, Garissa, Kenya.
Ahmed M. Mohamed
School of Pure and Applied Science, Garissa University, Garissa, Kenya.
Bashir M. Maalim
School of Business and Economics, Garissa University, Garissa, Kenya.
*Author to whom correspondence should be addressed.
Abstract
The dairy industry plays an important role in the world economy. However, in Garissa and Tana River Counties, milk traders face significant performance challenges. Although research indicates that Ansoff growth strategies can help improve performance, most extant empirical studies highlight contextual, conceptual, methodological and theoretical gaps. Accordingly, this research addressed the identified gaps by assessing the influence of Ansoff growth strategies on the performance of milk traders in Garissa and Tana River Counties in Kenya. The study examined the moderating effect of environmental dynamism on this relationship. The study was anchored on the Ansoff Matrix Framework and Chaos Theory. The study, which employed a pragmatic philosophy, used a mixed-methods approach and adopted a cross-sectional explanatory research design. The study population comprised 270 milk traders and a census approach was employed. Data were collected using structured questionnaires and an interview schedule. The instruments were pre-tested for reliability and validity. Quantitative data were analysed using descriptive and inferential statistics and the PROCESS macro for moderation, while qualitative data were analysed thematically. The study revealed that the Ansoff growth strategies are associated with improved performance (R² =0. 609, β =0.782, B = 1.050, p < .001) while environmental dynamism moderates the impact of Ansoff growth strategies on the performance of the micro, small and medium sized milk trading enterprises (R²=0.778, β = 0.763, B =0.967, t = 6.291, p < .001). The study recommends that enterprises adapt to changes in the environment. The study contributes to an understanding of the milk sector in Garissa and Tana River Counties by providing empirical evidence on practical growth strategies that milk-trading enterprises may use to expand markets, increase sales and profitability, improve customer satisfaction, add value to milk products, and strengthen the sustainability of milk-related businesses.
Keywords: Ansoff Matrix, market penetration, market development, product development, diversification, environmental dynamism, milk trading, micro, small and medium-sized enterprises, enterprise performance, pastoral economies