RP-Department of Agribusiness Management and Trade

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Analysis of Organic Products Marketing Channels in Kenya: A Transaction Costs Approach
(2012-10-04) Kyalo, Daniel; Eric, Bett; Bernhard, Freyer; Rhoda, Birech; Ngetich, Kibet
The nature of marketing of high value agricultural products such as Organic products has evolved over time, resulting into well coordinated physical, exchange and facilitating functions. However, the degree of market efficiency and effectiveness of these functions is highly influenced by the nature of interactions between the actors and their attributes. The current study aimed at offering policy options for improving marketing of organic products in Kenya through an analysis of the marketing channels. First, the study identified the actors and activities involved in marketing of organic products in Nairobi urban area. Secondly, the commodity (organic fruits and vegetables) attributes, the actors and the activities were analysed with view of determining how they influence two key outcomes: transaction costs and profitability. Primary data for the study was collected through a survey among 31 traders dealing in organic fruits and vegetables within Nairobi city. The data were analysed within the Institutions Analysis and Development (IAD) Framework. Results indicate that although transaction costs exist in the three channels identified, the nature and magnitude of such costs greatly varies across the channels depending on the number of players and their attributes. Traders incur transaction costs while searching and screening for reliable suppliers and customers, transporting the product and enforcing contracts. Furthermore, the type of transaction costs incurred within each marketing channel highly depends on the level of information asymmetry between actors, the actors’ attributes and existing institutional arrangements that are necessary to maintain transactions and counter opportunistic behaviour. The nature of activities and actors within each channel was also found to influence the transaction costs. The study draws imperative policy implications that can be used to reduce the transaction costs incurred in the business of marketing organic products. Some suggested policy options include: improving market information transmission, reforms in legal framework to facilitate contract farming and improved transport infrastructure.
The Effect of Ethical Treatment towards Customers on Enterprise performa nce in Mumias Sugar Belt, Kenya
(International Journal of Current Research, 2013-02) Otuya, W. I.; Onyango, M.A.; Ofafa, G. A.; Ojera, P. B.; Wachana, R.S.
This study attempts to examine the role of ethical treatment towards customers in enhancing enterprise performance. In this study respondents are the farmers contracted to Mumias sugar company which subcontracts cane transport services to private cane haulage companies. A total of 138 questionnaires were distributed and 100 were returned. To test the conceptual frame work, a structural equation modeling to analyze the data was done. In this regard, frequencies, correlations and binary logistic regression were used to establish the relationship between ethical treatment to customers (farmers) and enterprise performance. Findings revealed that ethical treatment indicators are predictors of enterprise performance among cane transport companies in Mumias sugar belt
The Effect of Succession Planning on Corporate Growth Strategy among Local Family Businesses in the Manufacturing Sector in Nairobi County, Kenya
(IISTE, 2015) Mugo, M.; Minja, D.; Njanja, L.
Family businesses are important contributors to wealth and employment creation in any country. Indeed the economic landscape of most nations remains dominated by family firms. In Kenya, one of the Vision 2030 objectives is to create new jobs and the growth of family businesses is important to help achieve this objective. Unfortunately, many family businesses collapse within the first few years of operation and others stagnate leading to loss of jobs and greatly affecting the Kenyan economy. Succession can be defined as the process through which the leadership of the business is transferred from the outgoing generation to the successor generation, which can either be a family member or a non-family member. A number of researchers have stated that one of the most significant factors that determine continuity of the family firm from one generation to the next is whether the succession process is planned. Companies that do not have succession plans have a lot at stake. The founder of those businesses could see their lifelong hard work dismantled or even sold to non-family members. This study sought to investigate the effect of succession planning on growth strategy among the local family businesses in the manufacturing sector in Nairobi County.
Inclusive Entrepreneurship: A Critical Look at Inclusion of Persons with Disabilities
(The Business and Management Review, 2020) Rolle, JoAnn; Kisato, Jacqueline; Rock, Patricia; Winstanley, Jacqueline
There have been many definitions of inclusion as it relates to the underserved and economic empowerment through entrepreneurship, but few of these definitions have focused specifically on persons with disabilities. Purpose of Research- Many studies have looked at increasing economic empowerment through entrepreneurship for women, minorities, youth, seniors, immigrants, and rural residents throughout literature. The gap however is that the lumping of all these categories has led to the overlooking of specific challenges faced by persons with disabilities. This oversight on economic inclusivity has been magnified especially during the Corona virus pandemic. Design/ Methodology- This study reviews literature in search of evidence to document programs, projects, and policies used in both developed and developing countries to address the challenges of inclusive entrepreneurship for all. The paper explores several entrepreneurial studies on inclusivity of business ecosystems in UK, USA, Sub Saharan Africa, and India and highlights public-private partnerships and impact investment as it relates to challenges in increasing inclusivity in businesses. Results/Findings- It was evident that, while there are many government policies and programs to support entrepreneurship in the USA,UK, Sub Saharan Africa and India, limited empirical studies have been documented to evaluate the impact of these policies on entrepreneurship for persons with disabilities. Some of the challenges cited in literature included gender gap, cost of doing business and the likelihood to be funded to launch a business, as common dominant factors reported on the issue of inclusion. Practical implications and Conclusions-The authors find that there is much more empirical research and analyses warranted in the study of entrepreneurship inclusion and empowerment of the underserved especially for persons with disabilities and continue reviewing literature and use quantitative and qualitative research such that additional programs, projects and policies may be developed to serve all inclusively.
Information Technology for Agriculture and Rural Development in Africa: Experiences from Kenya
(2012-10-04) Muriithi, Anthony Gikandi; Eric, Bett; Sarah, Ogalleh
Access, efficiency and affordability of agricultural information continue to be a major impediment for raising agricultural productivity among smallholders in Africa. Recently information and communication technology (ICT) has provided a possible pathway to ameliorate this scenario. A variety of innovations that integrate ICTs into the dissemination of agricultural information to farmers (Farmers Information Services - FIS) have been developed at local, national and regional levels. They have currently demonstrated a promising field of new research and application in e-agriculture whilst bringing new sources of information and new tools for local knowledge dissemination. This paper reviews and discusses the role of ICT and its practical contributions to agriculture and rural development in Kenya. Data from various sources- Kenya’s agricultural departments, ICT providers, NGOs and grey literature reviews were used. Results indicate use of ICTs especially mobile telephones is currently widespread in the rural areas of Kenya. Approximately one member of smallholder farming households own mobile phones. Extension service providers have harnessed this technology by putting it into profitable use in rural Kenya. For example, Kenya Agricultural Commodity Exchange (KACE) has developed a short messaging service- SMS SOKONI in partnership with Safaricom mobile phone provider. Any farmer anywhere in the country can access updated and reliable market information on prices and commodity offers at an affordable rate using their mobile phones. So far, the service is easy to use, reliable, convenient and affordable. The average monthly usage of this service increased from 1,273 in 2006 to 24,716 in 2008, demonstrating its subsequent usefulness and eagerness of farmers to explore the market information and linkage systems. Farmers are also able to access information on the right Hybrid Maize seeds to plant in their respective agroecological zones by way of texting to Kenya Seed Company Ltd a major seed distributor in East African region. This paper recommends adoption of such technologies by institutions such as Metrological Department to enhance provision of updated data on climate for appropriate decision making by agricultural farmers. This paper is critical to enhancing awareness on appropriate transferable technologies of 21st century that are still compatible to diverse cultural perceptions.
The Mediating Effect of Culture on Management Succession and Corporate Growth Strategy among Local Family Businesses in the Manufacturing Sector in Nairobi County, Kenya
(IISTE, 2015) Mugo, M.; Minja, D.; Njanja, L.
Family businesses exhibit one of the most fundamental characteristics of complexity theory – the interaction of three highly interdependent sub-systems. Not only are the interactions between the family, ownership, and business systems complex, but each of the systems are individually complex. Organization culture refers to shared assumptions, values and norms and is a source of sustained competitive advantage. Culture affects the decision-making process because shared beliefs and values give organizational members a consistent set of basic assumptions and preferences. Culture has been recognized as a contingent variable in the process of strategy formulation. Certain types of culture could enhance organization performance and culture is related to organization strategy particularly in the implementation of a selected strategy.

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