VALUE CHAIN MANAGEMENT PRACTICES AND PERFORMANCE OF FRUIT EXPORTING FIRMS IN NAIROBI CITY COUNTY, KENYA
Abstract
The value chain describes the full range of activities that firms and workers perform to bring a product from its conception to end use and beyond. The main aim of a value chain is to produce value-added products for a market, by transforming resources and by use of infrastructures within the opportunities and constraints of its firm environment. Agriculture is among the crucial sectors in the economy as it provides employment, foodstuffs, a source of foreign exchange earnings and provides linkages to other sectors of the economy. The fruit processing sector in Kenya is being underutilized and the firms are processing below their capacity. The general objective of the study was to examine the effect of value chain management practices on performance of fruit exporting firms in Nairobi City County, Kenya. The specific objectives are to examine effect of transport management and information flow performance of fruit exporting firms in Nairobi City County, Kenya. The study will be guided by two theories; value chain theory and agency theory. The study adopted a descriptive survey research design. The study targeted 88 fruit processing firms in Nairobi City County Kenya. The target was 88 procurements and 88 operations managers. Census sampling techniques was used to select the study sample. Therefore, a sample of 176 respondents. A pilot test was conducted with 18 participants, representing 10% of the sample size. The study emphasizes the significance of effective transport management practices in driving the performance of fruit exporting firms in Nairobi City County, Kenya. With a very strong positive correlation and substantial predictive power in the regression model, transport management emerges as a key determinant of firm performance. The study highlights the importance of efficient information flow practices in driving the performance of fruit exporting firms in Nairobi City County, Kenya. With a strong positive correlation and significant predictive power in the regression model, information flow emerges as a critical determinant of firm performance. To improve transport management and consequently firm performance, fruit exporting firms in Nairobi City County, Kenya should invest in advanced vehicle tracking systems with analytical capabilities to monitor and optimize vehicle performance and route planning. To improve information flow practices and enhance firm performance, fruit exporting firms in Nairobi City County, Kenya should establish robust communication channels and collaboration platforms with supply chain partners to facilitate information sharing and transparency.
Key Words; Transport Management, Information Flow, Value Chain Management Practices, Performance of Fruit Exporting Firms
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