ROLE OF STRATEGIC MANAGEMENT PRACTICES ON GROWTH OF MICRO AND SMALL SCALE AGRIBUSINESS ENTERPRISES IN KENYA: A CASE OF KISII COUNTY
Abstract
The purpose of this study was to examine the role of strategic management practices on the growth of micro and small scale agribusiness enterprises in Kenya. The study adopted a descriptive research approach to collect primary data. The study involved the use of questionnaire method to collect data. With the help of the statistical package for social sciences (SPSS) programme version 22 regression analysis was done and the results were used at .05 level of significance, determined the coefficients of the multiple regression model to establish the sample regression model and to evaluate the reliability of the estimated relationship. The coefficient of determination R Square indicated that 77.60% of the variation on growth of micro and small scale agribusiness enterprises can be explained by the set of independent variables, namely; managerial skills, access to finance, access to business information services and entrepreneurial skills. The remaining 22.40% of variation in growth of micro and small scale agribusiness enterprises can be explained by other variables not included in this model. This showed that the model had a good fit since the value was above 60%. In general, the higher the R-squared, the better the model fits the data. The adjusted R square was slightly lower than the R square which implied that the regression model may be over fitted by including too many independent variables. Dropping one independent variable would reduce the R square to the value of the adjusted R square. This indicated that managerial skills, access to finance, access to business information services and entrepreneurial skills are important factors that need to be enhanced to boost growth of micro and small scale agribusiness enterprises in the study area. The study contributed to the body of knowledge by examining the determinants of growth of micro and small scale agribusiness enterprises in Kenya. The study also contributed to the existing literature in the field of entrepreneurship by elaborating exiting theories, models and empirical studies on factors affecting growth of micro and small scale agribusiness enterprises. The current study should therefore be expanded in future in order to determine the effect of legal framework on the growth of micro and small scale agribusiness enterprises. Existing literature indicated that as a future avenue of research, there was need to undertake similar research in other counties in Kenya and other countries in order to establish whether the explored factors can be generalized.
Key Words: Strategic Planning, Strategic Leadership, Strategic Training, Strategic Funding
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.759
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