VALUE CHAIN MANAGEMENT SUPPORT ACTIVITIES AND PERFORMANCE OF FRUIT PROCESSING FIRMS IN NAIROBI CITY COUNTY, KENYA
Japhan Moreka Ongori - Master of Business Administration in Strategic Management, School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya
Dr. Enos Anene (PhD) - Lecturer, School of Business and Economics, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Robert Mang’ana (PhD) - Lecturer, School of Business and Economics, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Purpose: This study examined the influence of value chain management support activities on the performance of fruit processing firms in Nairobi City County, Kenya. The general objective of the study was to examine the influence of value chain management support activities on the performance of fruit processing firms in Nairobi City County, Kenya. The specific objectives were to assess the influence of procurement practices, evaluate the influence of technology adoption, determine the influence of human resource activities, and examine the influence of financial services on the performance of fruit processing firms in Nairobi City County, Kenya. The study was anchored on four theories, namely Transaction Cost Economics Theory, Diffusion of Innovations Theory, Human Capital Theory, and Dynamic Capabilities Theory. Methodology: A descriptive cross-sectional research design was adopted. The target population comprised 524 management-level employees drawn from the procurement, technology, human resource, and finance departments of the 79 licensed fruit processing firms in Nairobi City County. Simple random sampling was used to select 24 firms, from which a sample of 192 respondents was drawn using proportionate allocation. Primary data was collected using a structured questionnaire administered to management-level employees and were analyzed using both descriptive statistics, comprising frequencies, percentages, means, and standard deviations, and inferential statistics, comprising Pearson correlation and multiple linear regression analysis, with the aid of SPSS Version 29. Out of 192 questionnaires administered, 168 were properly completed and returned, yielding a response rate of 87.5%. Findings: Multiple regression results indicated that procurement practices, technology adoption, human resource activities, and financial services jointly explained 61.2% of the variance in the performance of fruit processing firms (R² = 0.612, F = 64.280, p < 0.001), with technology adoption emerging as the strongest predictor (β = 0.298, p < 0.001), followed by financial services (β = 0.261, p = 0.001), procurement practices (β = 0.189, p = 0.005), and human resource activities (β = 0.164, p = 0.039). The study concluded that value chain management support activities were a critical determinant of the performance of fruit processing firms in Nairobi City County. Recommendation: Value Chain Management Support Activities, Performance, Fruit Processing Firms, Procurement Practices, Technology Adoption, Human Resource Activities, Financial Services.