Influence of Strategic Resource Allocation on the Performance of Paint Manufacturing Firms in Kenya

Abstract

The purpose of this study was to examine the influence of strategic resource allocation on the performance of paint manufacturing firms in Kenya. The study was motivated by inconsistent performance trends in the sector, often attributed to inefficient allocation of resources despite increasing competition and market demands. A correlational research design was adopted, targeting 26 paint manufacturing firms registered with the Paint Manufacturers Association of Kenya. Stratified random sampling was used to select 113 respondents from key managerial roles. Data were collected using questionnaires and analyzed through descriptive statistics and binary logistic regression. Findings revealed that optimal strategic resource allocation significantly enhances organizational performance. Specifically, firms with optimal allocation practices were 25 times more likely to achieve high performance compared to those with suboptimal resource use. The study concludes that strategic allocation of resources is a key driver of firm success. It recommends that paint manufacturing firms adopt data-driven, demand-based resource distribution strategies, and invest in areas with the highest returns. Emphasis should also be placed on aligning resource planning with customer expectations and market dynamics to improve competitiveness and sustainability.