EFFECT OF PRODUCT MIX FLEXIBILITY ON COMPETITIVE ADVANTAGE AMONG KENYAN SMALL-SCALE IMPORTERS WITHIN GIKOMBA MARKET, NAIROBI COUNTY KENYA
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Abstract
The objective of the study was to examine the effect of product mix flexibility on competitive advantage among small-scale importers in Gikomba Market, Nairobi County. The study adopted a descriptive research design. The target population for this study comprised 1,500 licensed small-scale importers at Gikomba Market, and the sampling frame was obtained from The Nairobi Importers and Small Traders Association (NISTA). The sampling technique used was stratified sampling, selecting 316 importers. Primary data was collected using a structured questionnaire. The questionnaire contained closed-ended questions, scored and rated on a five-point Likert scale. Data cleaning and analysis were performed using SPSS Version 25.0 software, and descriptive and inferential statistics were generated. The descriptive results included means and standard deviations, while the regression results were based on the Pearson correlation coefficient and simple linear regression models. Finally, the output of the analysis was expressed as frequencies and percentages, with the results presented in tables and charts. Results indicated that providing options such as electronics, clothing, and accessories helps meet diverse customer needs (mean = 3.83). However, participants were neutral on quickly introducing trending items or innovative solutions to meet customer needs. Pearson correlational analysis revealed a significant positive correlation (n=242, r = .780**, p<0.05) between product mix flexibility and competitive advantage. The regression model explained 60.8% of the variance in competitive advantage (R = .780, R² = .608, p < 0.05), with the F value (372.258, p < 0.05) confirming the model's suitability. The regression coefficients highlighted a strong effect of product mix flexibility on competitive advantage, with a standardized coefficient (Beta) of .774, implying that a unit increase in product mix flexibility leads to a 0.794 unit increase in competitive advantage. The study customizing products to meet niche market needs by offering tailored items or unique functionalities for specific customers. Further studies could investigate the effect of supplier switching costs.
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