Moderating Effect of Competitive Strategy on the Relationship between Employee Outcomes and Performance of Firms Listed on the Nairobi Securities Exchange

Abstract

The role of competitive strategy in the relationship between employee outcomes and firm performance has not been established with the selected set of variables, yet theory has demonstrated that competitive strategy can have an effect on this relationship. This study was motivated by the desire to fill this gap in knowledge. The objective of the study was to assess the moderating effect of competitive strategy on the relationship between employee outcomes and firm performance. The research design was cross sectional descriptive survey. Data was collected using a self-administered questionnaire, from a population of 60(100%) Nairobi Securities Exchange listed firms. The response rate was 36(60%).Descriptive statistics, correlation and regression techniques were used to analyze the data. The results indicate that competitive strategy moderates the relationship between employee outcomes and firm performance. The study has empirically confirmed that competitive strategy moderates the relationship between employee outcomes and firm performance. It was recommended that firms have to align employee outcomes to the competitive strategy adopted by the firms in order to attain and sustain a superior competitive advantage in their operations.