STRATEGIC MANAGEMENT PRACTICES AND ORGANISATION PERFORMANCE OF KENYA DAIRY BOARD
Abstract
Purpose of Study: The purpose of this study was to investigate the relationship between strategic management practices and organisational performance at the Kenya Dairy Board.
Problem Statement: The study was motivated by the fact that only 12% of Kenyan dairy products meet international quality standards, reflecting weak innovation capacity and low competitiveness in global markets. Further, post-harvest losses account for 30% of annual milk output due to underinvestment in cold chain logistics and inefficient resource allocation. These challenges threaten the sector’s competitiveness and financial sustainability.
Methodology: A descriptive design was adopted, targeting 149 employees, with a stratified sample of 109 respondents. Data were collected using structured questionnaires and analysed through descriptive, correlation, and regression techniques. Reliability and validity were confirmed through pilot testing and diagnostic checks, while ethical approvals were obtained from St Paul’s University and NACOSTI.
Result: The Board’s performance remained stable even without the studied practices. Strategic innovation practices had a negative but statistically significant effect on performance (B = –0.252, p = 0.017), indicating possible misalignment with sector priorities. Resource allocation (B = 0.119, p = 0.376) and operating environment practices (B = 0.195, p = 0.153) showed positive but insignificant effects. This suggests that current strategies have limited impact on organisational performance.
Recommendation: The researcher recommends investing in new technologies, promoting a culture of creativity, adopting data-driven resource allocation, and strengthening responses to external market and regulatory dynamics.
Keywords: Strategic Innovation Practices, Resource Allocation Practices. Operating Environment Practices. Organisational Performance, Kenya Dairy Board.
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