Strategic Thinking and Performance of Small and MediumSized Dairy Processing Firms in Kenya
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Date
2021
Authors
Mbaya, Joyce Muthoni
Maina, Samuel
Namusonge, Mary
Journal Title
Journal ISSN
Volume Title
Publisher
European Scientific Institute
Abstract
The dairy sector plays a crucial role in 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 among others. A review of literature shows that
the effect of strategic thinking on the performance of small and medium-sized dairy
processing firms remains uncertain. This study sought to determine the effect of strategic
thinking and performance of small and medium-sized dairy processing firms in Kenya. The
study was anchored on the Leidtka Model. Positivism research philosophy was adopted.
Descriptive and explanatory research designs were used. A census survey was conducted on
all the small and medium-sized dairy processing firms in Kenya and primary data was
collected. Descriptive statistics such as mean and standard deviation were used to explain
data characteristics, while multiple regression was used to test the effect of the study
variables on firm performance. The results showed that strategic thinking has a positive
significant effect on the performance of small and medium-sized dairy processing firms in
Kenya, thus it was perceived that strategic thinking aids creation of a path for what the firm
wants to become through focusing on their intent, systems, timely thinking, intelligent
opportunism and hypothesis-driven research. The study contributes to the body of
knowledge by filling contextual, empirical, and conceptual gaps identified earlier in
literature and establishing a nexus of strategic thinking and performance of small and
medium-sized dairy processing firms in Kenya. The study recommends that strategic
thinking should be enhanced particularly by using research to inform their decision-making and practice quick decision-making to mitigate or exploit opportunities while thinking of
possible solutions to unexpected challenges.
Description
A research article published in European Scientific Journal
Keywords
Strategic thinking, Firm performance, Small and medium-sized dairy processing firms
Citation
Mbaya, MJ., Maina, S., and Namusonge, M. (2021). Strategic Thinking and Performance of Small and Medium-Sized Dairy Processing Firms in Kenya. European Scientific Journal, ESJ, 17(8), 106.https://doi.org/10.19044/esj.2021.v17n8p106