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Strategic Learning and Performance of Small and Medium Sized Dairy Processing Firms in Kenya

Author

Listed:
  • Joyce Muthoni Mbaya

    (School of Business, Kenyatta University, P. O. Box 43844-00100, NAIROBI, Kenya)

  • Samuel Maina

    (School of Business, Kenyatta University, P. O. Box 43844-00100, NAIROBI, Kenya)

  • Mary Namusonge

    (School of Business, Kenyatta University, P. O. Box 43844-00100, NAIROBI, Kenya)

Abstract

The dairy sector plays a key role in the economic growth and development of Kenya, yet many firms in the sector, especially the small and medium sized, continue to face performance challenges such as the unregulated informal milk market, accessing markets, high industry barriers and strategic leadership competency deficiencies that fail to create environments of learning among others. Strategic learning is important in the sustainability of firms and though the subject 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 learning on the performance of small and medium sized diary processing firms in Kenya. The study was anchored on the Path-Goal Leadership Theory. Descriptive and explanatory research designs were used. A census survey was conducted and primary data was collected. A semi-structured questionnaire was distributed to 92 respondents consisting of chief executive officer, finance manager, marketing manager and production managers. In total, 84 questionnaires were filled and returned thus a 91.3% response rate was achieved. 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 learning has a positive significant effect on performance of small and medium sized dairy processing firms in Kenya, therefore it is perceived that firms that practice strategic learning have better performance. The study contributes to the body of knowledge of strategic management by filling contextual, empirical, and conceptual gaps identified earlier in literature and establishing a nexus of strategic learning and performance of small and medium sized dairy processing firms in Kenya. The study recommends that the small and medium sized dairy processing firms in Kenya should ensure that strategic learning is practiced in their firms by creating a learning culture in their firms, encourage innovations and team learning.

Suggested Citation

  • Joyce Muthoni Mbaya & Samuel Maina & Mary Namusonge, 2021. "Strategic Learning and Performance of Small and Medium Sized Dairy Processing Firms in Kenya," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(5), pages 249-262, October.
    • Handle: RePEc:aml:intbrm:v:12:y:2021:i:5:p:249-262
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    References listed on IDEAS

    as
    1. Wambugu, Stella & Kirimi, Lilian & Opiyo, Joseph, 2011. "Productivity Trends and Performance of Dairy Farming in Kenya," Working Papers 202598, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    2. Garcia, Otto & Mahmood, Kalid & Hemme, Torsten, 2003. "A Review of Milk Production in Pakistan with Particular Emphasis on Small-scale Producers," PPLPI Working Papers 23782, Food and Agriculture Organization of the United Nations, Pro-Poor Livestock Policy Initiative.
    3. Hemme, Torsten & Garcia, Otto & Saha, Amit, 2003. "A Review of Milk Production in India with Particular Emphasis on Small-Scale Producers," PPLPI Working Papers 23777, Food and Agriculture Organization of the United Nations, Pro-Poor Livestock Policy Initiative.
    4. Robert Cote, 2017. "A Comparison of Leadership Theories in an Organizational Environment," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 8(5), pages 28-35, July.
    5. Doucouliagos, Hristos & Hone, Phillip, 2000. "The efficiency of the Australian dairy processing industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-16.
    6. M. S. Deshmukh, 2014. "Growth And Performance Of Dairy Sector In India," Working papers 2014-09-13, Voice of Research.
    7. Yuan Li & Haowen Chen & Yi Liu & Mike Peng, 2014. "Managerial ties, organizational learning, and opportunity capture: A social capital perspective," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 271-291, March.
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    Cited by:

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    More about this item

    Keywords

    Strategic Learning; Firm Performance; Small and Medium Sized Dairy Processing Firms.;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

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