Effect of Distribution Channel on Performance of Cement Manufacturing Companies in Kenya

Abstract

The study investigated the effect of distribution channels on the performance of cement manufacturing companies in Kenya using a descriptive survey design. The target population comprised 395 managerial-level staff across cement companies, from which 30% were selected using a two-stage cluster sampling technique, categorized into top and lower management levels. Both primary and secondary data were collected. Instrument validity was ensured through content validation during pilot testing, which involved 20 lower-level management respondents to confirm the questionnaire’s suitability. Quantitative data were analyzed using descriptive statistics (frequencies, percentages, means, and standard deviations) to assess response patterns and levels of agreement on Likert-scale items. Inferential statistics, including correlation and regression analysis, were used to examine relationships between variables. The findings revealed a moderately strong and statistically significant positive correlation between distribution channel differentiation and organizational performance. Regression results further confirmed a positive and significant relationship between the variables (β = 0.362, p = 0.000). The study recommends that cement companies establish branches in strategic locations to capture emerging market opportunities and enhance customer education through digital platforms, thereby improving product awareness, particularly in areas without physical branch presence.