STRATEGIC MANAGEMENT FACTORS AND PERFORMANCE OF TEA INDUSTRY IN KENYA: A CRITICAL REVIEW OF LITERATURE
STRATEGIC MANAGEMENT FACTORS AND PERFORMANCE OF TEA INDUSTRY IN KENYA: A CRITICAL REVIEW OF LITERATURE
William Nyabio Nyarang’o - PhD Candidate, School of Business and Economics, Kisii University, Kenya
Dr. Charles Momanyi - Senior Lecturer, School of Business and Economics, Kisii University, Kenya
ABSTRACT
Tea is one of the main export cash crops and major foreign exchange earner for Kenya. Tea industry which has been doing well and the most influential sector in the Kenya economy is now no longer performing as expected. Like other industries, the tea sector is expected to be a function of efficiency, effectiveness and with sufficient management operations. In recent times, the industry has experienced declines in earning. This decline in earnings forms part of the basis for this literature review and subsequent study since the earnings are a product of performance of the respective factory companies as premised on strategic corporate governance, innovative technology, cost controls and quality of product(s). This study seeks to analyze the management factors that have influence on the performance of the Small- Scale tea industry in Gusii Region, Kenya. The specific objectives then will be to; establish if corporate governance has influence on the performance of the tea industry, determine if innovative technology influences the performance of the tea industry, to evaluate the effect of cost control on performance of tea industry, evaluate the effect of leadership on performance of tea industry, assess the influence of product quality on the performance of the small-scale tea industry and determine the combined effect of corporate governance, innovative technology cost control and product quality on the performance of the small scale tea industry. The study will be guided by Resource Based Theory and will apply organizational management practices like time management, and stakeholder’s theory. The target study population will be twelve (12) small scale tea factory companies in Gusii Region as at 31st December 2019 with a population of 240000 farmers, 1200 employees, and 72 directors. The sample size of study will be 520 respondents. Data analysis will be by use of descriptive statistical techniques using means, frequencies and standard deviation. Pearson’s product moment correlation will be applied to test the strength of relationship between the variables. Simple and multiple regression analyses will be used to test the effect and level of significance of effect of the variables. Study findings will help improve the management of the small-scale tea industry, benefit tea industry venders, consulting and advisory firms, governments and policy makers and regulatory authorities like the Tea Board of Kenya and establish new frontiers for further studies on strategic business management in the fast-changing competitive business environment.
