Budget Reduction Strategies and Firm Profitability: Evidence from Private Sugar Manufacturing Firms in Western Kenya
Abstract
This study investigates the impact of budget reduction strategies on firm profitability in private sugar manufacturing firms in Western Kenya. Using a descriptive survey design, data was collected from 62 respondents across five private sugar manufacturing firms. The study examined three budget reduction strategies: remote working, negotiation skills, and robot-based operations. Results revealed that budget reduction strategies significantly influence firm profitability (R = 0.623, R² = 0.388, p < 0.001), explaining 38.8% of variance in profitability. Negotiation skills emerged as the most effective strategy (M = 4.05), followed by robot-based operations (M = 3.66), while remote working showed the least effectiveness (M = 3.56). The regression equation Y = 1.265 + 0.647X demonstrates that a one-unit improvement in budget reduction strategies increases profitability by 0.647 units. These findings support Porter's Cost Leadership Strategy and highlight the importance of strategic cost management in enhancing manufacturing firm performance.
Keywords
Budget Reduction Strategies, Firm Profitability, Sugar Manufacturing, Cost Management
Citations
IRE Journals:
Janet Barasa , Abraham Malenya Anjetsa , Vincent Marani
"Budget Reduction Strategies and Firm Profitability: Evidence from Private Sugar Manufacturing Firms in Western Kenya" Iconic Research And Engineering Journals Volume 9 Issue 1 2025 Page 1099-1103
IEEE:
Janet Barasa , Abraham Malenya Anjetsa , Vincent Marani
"Budget Reduction Strategies and Firm Profitability: Evidence from Private Sugar Manufacturing Firms in Western Kenya" Iconic Research And Engineering Journals, 9(1)
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