Strategic Management Practices and Sustainability of SMEs Agribusiness in Kenya: A Survey of Githunguri Sub County
Abstract
The main objective of this study was to establish the effect of strategic management practices in sustainability of Agribusiness by small scale farmers in Githunguri Sub - County. Agriculture is a pillar and the economy's backbone in most of the developing countries like Kenya, it helps to create job opportunities for the citizens and this assists in the growth of rural development. Despite the growing populations in developing countries, the agricultural sector continues to perform poorly and the majority of people engaged in agriculture remain in poverty. To achieve a sustainable agricultural sector, new strategies must be developed to holistically address the challenges preventing growth. The overall objective of this study was to establish the effect of strategic management in sustainability of Agribusiness by small-scale farmers in Kenya with a general focus on Githunguri Sub - County. Specifically, the study examined the effects of strategic human resource in performance of Agribusiness in Githunguri, established the effects of using technology strategies on Agribusiness performance, determined the effects of strategic supply chain management practices on Agribusiness performance and also established the effects of financial management on Agribusiness performance in Githunguri. The study adopted a conceptual framework underpinned by Modern Portfolio Theory, Agency Theory, and Resource- Based Value Theory. The study target population was 12,170 SME farmers in Githunguri Sub- County. Descriptive research design was used to investigate the variables, the study also used stratified random sampling and adopted Fishers scientific formula to determine the sample size of 96 farmers in Githunguri Sub- County. The Pilot study had 84 Questionnaires. Questionnaires used to collect data offered both qualitative and quantitative data which was key for the data analysis. Quantitative data was analyzed by SPSS version 24.0. Thereafter, inferential statistics such as correlation and regression were carried out to determine the existing relationship between the study variables. The correlation analysis helped to determine the magnitude and the nature of the relationship between the variables. The study recommended improvement of Human Resource strategies by building capacity of the farmers, use of technology modern farming methods, improvement of supply chain for maximum value addition and sound financial management planning and controls. Both the National Government and County Government need to legislate and come up with better agribusiness policies so as to ensure agribusiness sustainability.
Key words: Human resource strategies, Technology strategies, Supply chain strategies, financial management strategies, Agribusiness sustainability, Kenya
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