Linkage Strategies, Industry Forces and University Performance

This study sought to contribute to knowledge by assessing the moderating effect of industry forces on the relationship between linkage strategies and performance of universities in Kenya. Porter’s five forces model and Resource Based View (RBV) are the main theories anchoring the study. Cross-Sectional survey was adopted as the research design. The population of the study consists of sixtyfive (65) public and private universities incorporated in Kenya. Out of this, a sample of forty seven (47) universities which had undergone at least one graduation cycle was taken. Primary and secondary data was collected using semi-structured questionnaires and review of existing university documents and regulatory bodies websites respectively. The instrument was tested for reliability and found fit. Analysis was undertaken using correlation and regression analyses to test hypotheses. Analysis of variance was also used to determine the differences between group means. Coefficient of variation (C.V) was also used to measure variability and consistency in scores of different universities when standard deviation and arithmetic means are compared. Out of the targeted forty seven (47) respondents from forty seven (47) universities, a total of forty four (44) questionnaires were returned, representing 94% response rate. It was established that there is a moderating effect of industry forces on the relationship between linkage strategies and organizational performance. The results provided rich implications for theory, policy and practice. The significance of industry forces in strategy formulation and implementation requires concentrated attention. The findings offer insights to university authorities and policy makers by answering the question on the influence of industry forces on performance of higher learning institutions. The key recommendation that the study offers to the stakeholders, is the need to consider industry forces as critical determinants during strategy formulation and implementation process in order to enhance university performance. The main limitation of this study is that primary data was collected from only one respondent per university but common methods bias was mitigated through the use of additional secondary data to validate primary data. Thus, the limitation did not affect the credence of the results as presented and discussed. Secondly, although it was not possible to include all the determinants of institutional performance, balanced score card was appropriately used to represent financial and non-financial aspects that constitute performance indicators. Published In: Munyoki, Bode (Eds.): Universities, Entrepreneurship and Enterprise Development in Africa - Conference Proceedings 2017. Nairobi, Kenya, 19. July 2017