Influence of Strategic Management Practices on Performance in Selected Agribusiness Small and Medium Enterprises in the Kenyan Coast

Abstract

This study sought to establish the influence of strategic management practices on the performance of selected agribusiness SMEs in the Coast region. The study was guided by both general and specific objectives. Specific objectives of the study was to examine the effects of strategic alignment on the performance of selected agribusiness SMEs in the Kenyan Coast; to establish the effect of strategic planning on the performance of selected agribusiness SMEs in the Kenyan Coast; to determine the effect of strategic leadership on the performance of selected SMES in the Kenyan Coast and to determine the effects of strategic organizations design on the performance of selected agribusiness SMEs at the Kenya Coast. To strengthen the conceptual framework, the researcher will use the porter's theory and the resource-based theory. The study target population will be 50. The study sample size was 44. A modified Likert scale questionnaire will be developed divided into three parts. A pilot study was carried out to refine the instrument. The quality and consistency of the study was further being assessed using Cronbach's alpha. Data analysis was performed on a PC computer using Statistical Package for Social Science (SPSS Version 23) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression, correlation and the information generated will be presented in form of graphs, charts and tables. The study revealed that the four factors studied namely, strategic alignment, strategic planning, strategic leadership and strategic organizational design, determined 80.9% of the relationship between strategic management, with Strategic leadership contributing most to performance while Strategic planning contributing lowest with a multiple regression analysis. The study results revealed that majority of agribusiness SMEs have adopted a functional organizational structure having an organizational business system and human intensive business process From the research findings, the study concluded all the independent variables studied have significant effect on performance of agribusiness SMEs as indicated by the strong coefficient of correlation and a p-value which is less than 0.05.The overall effect of the analyzed factors was very high as indicated by the coefficient of determination. The study recommends that agribusiness SMEs should continually align their strategies after review to reflect the current prevailing situations; evaluate their strategic plans periodically to ensure that they are still on the correct path; embrace a mix of human intensive with document process mixed with good organizational systems to reduce operational costs in the long run; and have strong leadership to carry out the vision of the organization if it has to be sustainable.