Strategic Action and Performance of Small and Medium Sized Dairy Processing Firms in Kenya
Loading...
Date
2020
Authors
Mbaya, Joyce Muthoni
Maina, Samuel
Namusonge, Mary
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal Corner
Abstract
The dairy sector plays a crucial role in the economic growth and development of Kenya. However, many firms in the
sector, especially the small and medium sized, continue to face performance challenges such as competition from
unregulated informal milk market, accessing markets and high industry barriers, poor policy environment among others.
Although strategic action has received attention both in practice and scholarly, its effect on the performance of small
and medium sized dairy processing firms remains uncertain. This study sought to determine the effect of strategic action
on performance of small and medium sized diary processing firms in Kenya. The study was anchored on the balanced
score card model and adopted a positivism research philosophy. Descriptive and explanatory research designs were used.
A census survey was conducted. Primary data was collected from the chief executive officer, finance manager, marketing
manager and production managers. Descriptive statistics such as mean and standard deviation were used to explain
data characteristics and multiple regressions were used to test the effect of strategic action on firm performance. The
results showed that strategic action has a positive significant effect on performance of small and medium sized dairy
processing firms in Kenya. It is thus perceived that strategic action is a key driving factor in the performance of small
and medium sized dairy processing firms in Kenya through the capabilities and activities of managers in the
implementation process that aids building of competitive advantage of the firms. The study contributes to the body of
knowledge by filling contextual, empirical, and conceptual gaps identified in literature and establishes a link between
strategic action and performance of small and medium sized dairy processing firms in Kenya. The study recommends
that small and medium sized dairy processing firms in Kenya should invest in their brands, simplify business operations
and strategically allocate resources to various firm activities to enhance firm performance.
Description
A research article published in The International Journal of Business & Management
Keywords
Strategic action, Firm performance, Small and medium sized dairy processing firms
Citation
The International Journal of Business & Management. Vol 9 Iss 1