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Effects of Distribution Strategy on MSP Intermediary Organisations Performance in Nairobi County, Kenya

Journal of Supply Chain Management Systems

Volume 4 Issue 1 & 2

Published: 2015
Author(s) Name: Stanley Chege Karanja, Muathe S. M. A., Thuo J. Kuria | Author(s) Affiliation: Kenyatta University, Kenya
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This study sought to determine the effect of the Distribution Strategy on the performance of MSP intermediary organizations. It is imperative to note that there has been a high recognition of the role played by the telecommunication sector towards Kenyas economic growth and has multiplier effects on other aspects. This has underscored its importance in the countrys development agenda. However, it still remains validly appreciated that there exist intermediary organizations in the same fast-growing telecommunication sector whose contribution in this acclaimed progress is little appreciated. Thus, the MSP intermediary organizations must implement the appropriate distribution strategies that will enable them deliver their own objectives and those of their parent organizations. The study employed a descripto-explanatory cross-sectional survey research design and collected primary data from 219 respondents from a target population of 397. This study established that choice of distribution strategy contributed significantly to the MSP Intermediary organizations performance. The study recommends that the sales manager need to lobby its management to invest in more people and an ICT system that will enable tracing, tracking and trending of performance of each salesperson and route to ensure adequate coverage of the territory. In addition, sales managers need to lobby the management to approve a performance compensation plan and bonus/incentive scheme that will motivate the salesperson to ensure efficient routing of the customers thus improved performance of the MSP intermediary organization.

Keywords: Mobile Service Providers, Intermediary Organisations Performance, Distribution Strategy, Theory of Channel Power and Conflict

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