Technology Innovation as a Strategic Management Practice and Determinant of Performance of Tea Industry in Mount Kenya Region
Abstract
In Kenya, Tea industry has not been competitive. As a result, the earnings have not been commensurate with tea production efforts that have often attracted the wrath of farmers to the extent of tea picking boycotts, uprooting of tea bushes, destruction of factory property and even threatening the lives of tea industry managers. This phenomenon is attributed partly to the fact that the small-scale producers market their tea in bulk; semi-processed products and therefore fails to attract premium prices for their produce. As result, strategic interventions are required for the tea industry to remain competitive. The objective of the study was to investigate the influence of technology innovation as a strategic management practice and determinant of performance of tea industry in Mount Kenya region. Technology Acceptance model and Industrial Market Theory guided the study. Mixed methods research design was used. The target population was 117 management team comprised of five regional management team ; regional accountant, operations manager, production manager, auditor, and 112 top management in 16 factories who include, 16 manager 16 production managers 32 accountants 32 training managers and 16 field coordinators sixteen factories that lie in Mount Kenya region. Stratified, simple random sampling was used to select 92 respondents out of 112 based on Krecjie and Morgan Table. Purposive sampling was used to select five regional managers. Data was collected using questionnaires. Reliability was examined using pilot study and internal consistency test. Regression analysis indicated that value addition strategy have a strong positive relationship with financial performance of the tea industry In Mount Kenya region. Regression results also established that technological innovation and strategy implementation have a strong positive relationship with financial performance of the tea industry in Mount Kenya region. Based on the findings of the study, it was concluded that strategic management practices influence performance of tea industry in Mt Kenya region in Kenya positively. The adoption of strategic management practices has a high potential of improving tea industry performance and thus better prices to the farmers. The study concluded that tea factories should provide incentives for research and development on adoption of newest Technology in the market to support cost reduction and improve quality. Professionals in the tea industry should spend more time, effort and resources towards innovations
Keywords: Strategic Management, Technology Innovation, Performance & Mt. Kenya Region.
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