Management Strategies and The Performance of Youth Agri-Businesses in Kenya: A Case of Farm Africa
DOI:
https://doi.org/10.47941/jepm.454Keywords:
Differentiation Strategy, Cost Leadership Strategy, Focus Strategy, Access to Finance and Performance, Youth Led AgribusinessAbstract
Purpose: The general objective of the study is to assess management strategies and performance of youth agribusinesses in Kenya: case of Farm Africa. Three research objectives were used; to find out the effect of differentiation strategy on the performance of youth led agribusiness at Farm Africa, to establish the effect of cost leadership strategy on the performance of youth led agribusiness at Farm Africa, and to assess the effect of focus strategy on the performance of youth led agribusiness at Farm Africa.
Methodology: This study adopted a case study research design. The study population was all the 30 youth who participates in agribusinesses. Census method was then used since the population was manageable. This research study used questionnaires as the primary research instruments for data collection. A statistical tool known as Statistical Packages for Social Sciences (SPSS version 20) (Park, 2015) were used for the process of data analysis. The data that was collected was analyzed by use of descriptive statistics and Pearson Correlation analysis method as well as regression analysis.
Findings: The study concludes that differentiation costs had positive significant relationship with the performance of agribusinesses at Farm Africa. The study concludes that cost leadership strategy led in the improvement of performance of agribusinesses at Farm Africa. The study concludes that majority of the farmers that were studied adhered to focus strategy because it helped them in improving overall performance of agribusinesses at Farm Africa. The study concludes that finance was a key determining factor in the performance of agribusinesses.
Unique contribution to theory, practice and policy: The study recommends that farmers at Farm Africa need to adhere to product differentiation such that they cannot easily be copied by rivals. The study recommends that farmers should have flexible product costs together with water tight market price strategies that could promote performance. The study recommends that in order to enhance focus strategy, farmers should strive to exploit differences in cost behavior in market segments in order to improve agribusiness performance. The study recommends that policy makers should come up with farmer friendly financial policies that will cushion farmers from high interest rates charged by financial institutions such as MFIs and commercial banks.Downloads
References
AgneteAlsos, G., Ljunggren, E., & Pettersen, L. (2013). Farm-based entrepreneurs: what triggers the start-up of new business activities? Journal of Small Business and Enterprise Development 10, 435–443.
Ahaibwe, G. & Mbowa, S. (2014). Youth unemployment challenge in Uganda and the role of employment policies in jobs creation. Africa in Focus blog. Brookings Institution, Washington, DC.
Altieri, M.A., Funes-Monzote, F.R. & Petersen, P. (2012). Agro ecologically efficient agricultural systems for smallholder farmers: contributions to food sovereignty. Agronomy for Sustainable Development 32, 1–13.
Ansoff, H.I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113-124
Atieno, R. (2016). Linkages, access to finance and the performance of small-scale enterprises in Kenya, Research paper/UNU-WIDER.
Atkinson, A. & Messy, F. (2012). Measuring financial literacy: Results of the OECD/INFE (International Network on Financial Education) Pilot Study, OECD working papers on finance, insurance and private pensions, No. 15. OECD Publishing
Bairwa, S.L., Lakra, K., Kushwaha, S., Meena, L.K., & Kumar, P. (2014). Agripreneurship development as a tool to upliftment of agriculture. International Journal of Scientific and Research Publications 4, 1–4
Bank, W. (2014). "Youth entrepreneurship: Measures to overcome the barriers facing youth”, Journal of Entrepreneurial Development, 2(6), 234-378
Barney, J.B., & Hesterly, W.S. (2010). Strategic management and competitive advantage: Concepts and cases (pp. 4-25). Upper Saddle River, N.J: Prentice Hall.
Berglann, H., Moen, E. R., Røed, K., & Skogstrøm, J. F. (2011). Entrepreneurship: Origins and returns. Labour Economics, 18(2), 180-193.
Boehlje, M., Roucan-Kane, M., & Bröring, S. (2011). Future agribusiness challenges: strategic uncertainty, innovation and structural change. International Food and Agribusiness Management Review 14, 53–82
Bosma, N., Van Praag, M., Thurik, R., & De Wit, G. (2014). The value of human and social capital investments for the business performance of start-ups. Small Business Economics, 23(1), 227 – 236.
Brooks, K., Zorya, S., & Gautam, A. (2012). Jobs for Africa’s youth. International Food Policy Research Institute (IFPRI). 2012 Global Food Policy Report, 49-57.
Bushell, B. (2018). Women entrepreneurs in Nepal: what prevents them from leading the sector? Gender & Development,16(3): 549-564.
Chigunta, F. (2012). Youth entrepreneurship: Meeting the key policy challenges, Education Development Center.
Creswell, J. W. (2014). Qualitative inquiry and research design: Choosing among five designs, Thousand Oaks, CA: Sage.
Dash, M., & Kaur, A. (2012). The role of the modern university in supporting the entrepreneurial ecosystem. European Journal of Interdisciplinary Studies, 7(1),11.
Duboyne, I. (2015). Live drone demonstration. Wisconsin State Farmer News. USA
Duft, K. (2015). Managing for success and failure in a small agri-business firm. Agri-business Management, School of Economic Sciences, Washington State University, Pullman, Washington.
Ehlers, T., & Lazenby, K. (2017). Strategic management. South Africa concepts and cases. Pretoria: Van Schaik. Government Gazette. National youth Policy 2(13),12-17.
Eisenhardt, K.M., & Martin, J.A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10-11), 1105-1121.
Faisal, I. (2010). Institutionalization of agricultural knowledge: management system for digital marginalized rural farming community. In: Coudel, E., Devautour, H., Soulard, C. and Hubert, B. (eds) Proceedings of a symposium on Innovation and Sustainable Development in Agriculture and Food, pp. 10–22.
Gorgievski, M.J., Ascalon, M.E., & Stephan, U. (2011). Small business owners’ success criteria, a values approach to personal differences. Journal of Small Business Management 49, 207–232
Gwija, S. A. (2014). Challenges and prospects of youth entrepreneurship in Khayelitsha, Western Cape. Economic Development Journal, 10(3), 155-178
Herrington, M., & Wood, E. (2013). Global Entrepreneurship Monitor, South African Report [Online]. Journal of Agricultural and Food Information, 3(7), 56-121
Hossain, M., & Jaim, W.M.H. (2011). Empowering Women to Become Farmer Entrepreneurs. Case study of a NGO supported program in Bangladesh. Paper presented at the IFAD Conference on New Directions for Smallholder Agriculture, 24–25
Ikerd, J.E. (2011) Local food: revolution and reality. Journal of Agricultural and Food Information, 12, 49–57
Ikiara, W., & McCormic, F. (2011). Challenges Affecting Youth Access to Youth Enterprise Fund: A Study Of Youth Empowerment Support Services-Kenya (Doctoral dissertation, United States International University-Africa).
Kelley, D. J., Singer, S., & Herrington, M. (2012). Global entrepreneurship monitor 2011 global report. Global Entrepreneurship Research Association, London Business School.
Kiraguri, G. (2012). Social Cultural Barriers affecting the women entrepreneurs in Kenya. Federation of Women Entrepreneurs Association, Nairobi.
Kung’u, A.M.U. (2017). Effect of selected Porter’s five forces on competitive advantage in steel industry: a case of flat-steel segment in Kenya. Journal of Management, 6(4), 76
Lans, T., Seuneke, P., and Klerkx, L. (2013). Agricultural entrepreneurship. In: Carayannis, E.G. (ed.) Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship. Springer, New York, pp. 44–49.
Lefebvre, E., & Lefebvre, L. A. (2012). Determinant of export performance and behavior: A longitudinal study of manufacturing SMEs in Kleinknecht. Econometric Explorations of Survey Data, 5(1), 281-309.
McElwee, G., & Smith, R. (2012). Classifying the strategic capability of farmers: a segmentation framework. International Journal of Entrepreneurial Venturing, 4, 111–131.
McMichael, P. (2015). Global development and the corporate food regime. Research in Rural Sociology and Development, 11, 269–303.
Mistikoglu, G., & Oral, E.L. (2015). Competitive analysis of the Turkish brick industry-a case study of developing countries. Building and Environment, 42(1), 416-423.
Mollentz, M. (2012). Barriers to Business Start-up among Tanzanian University Graduates: Evidence from the University of Dar-es-salaam. Global Business Review, 17(1), 16-37.
Murithii, C. (2013). Youth Polytechnics Education and Entrepreneurship in Kenya; (Are We Promoting Entrepreneurs?). International Journal of Academic Research in Business and Social Sciences 3(5): 491
Nandakumar, M.K., Ghobadian, A., & O’Regan, N. (2011). Generic strategies and performance of manufacturing firms in the UK. International Journal of Productivity and Performance Management, 12(2), 76-80
Ndhlovu, S., &Twala, W. D. (2017). Financial needs of small and medium scale contractors in South Africa [Online]. Finance and Economic Journal, 7(2), 45-70
Nicolaides, A. (2011). Entrepreneurship-the role of higher education in South Africa. Educational Research, 2(4), 1043-1050.
Park, H. M. (2015). Hypothesis testing and statistical power of a test. Academic Research Journal, 4(4), 78-99
Pearce, I.I. JA., & Robinson, R.B. (2011). Strategic management formulation, implementation and control. Journal of Strategic Management, 5(10), 111-115
Penrose, E. (1959). RBV theory of growth of the firm. Oxford: Blackwell
Pettinger, T. (2014). Problems of agriculture – market failure. EconomicsHelp.org. Economic Journal, 2(10), 34-67
Porter, M.E. (1980). The five competitive forces that shape strategy, Harvard Business Review, 86(1), 25-40
Porter, M.E. (1985). How information gives you competitive advantage. Business Administration Journal, 11(4), 212-234
Porter, M.E. (2002). The competitive advantage of corporate. Corporate Governance Journal, 7(4), 12-24
Powers, T.L., & Hahn, W. (2014). Critical competitive methods, generic strategies and firm performance. International of Bank Marketing, 8(4), 56-78
Pretorius, M. & Shaw, G. (2014). Business plans in bank decision-making when financing new ventures in South Africa. South African Journal of Economic and Management Sciences= Suid-AfrikaanseTydskrifvirEkonomieseenBestuurswetenskappe 7(2), 221241.
Saunders, M. N., Saunders, M., Lewis, P. & Thornhill, A. (2011). Research methods for business students, 5/e, Pearson Education India.
Schoof, U. (2016). Stimulating Youth Entrepreneurship: Barriers and incentives to enterprise start-ups by young people (No. 993881573402676). International Labour Organization.
Shrader, R. C., Mkael, R., & Simon, M. (2016). Corporate versus independent new ventures: Resource, strategy, and performance differences. Journal of Business Venturing, 12(1), 47-66.
Singh, M.P. (2014). Entrepreneur and economic development: a study of role of various forms of entrepreneurs in economic development. Global Journal of Multidisciplinary Studies, 3(5), 45-67
Stupnytska, A., Koch, K., MacBeath, A., Lawson, S., & Matsui, K. (2014). Giving credit where it is due: how closing the credit gap for women-owned SMEs can drive global growth. Goldman Sachs Global Market Institute, New York.
Suárez, M. (2012). Campesino communitarian enterprises in Latin America. In: Araujo, J.E.G. (ed.) The Community Enterprise: A Model for the Reform Process in Latin America. IICA Institutional Development, no. 4. Inter-America Institute for Cooperation on Agriculture, Washington, DC, pp. 297–335.
Wang, C.L., & Ahmed, P.K. (2007). Dynamic capabilities: A review and research agenda. International Journal of Management Reviews, 9(1), 31-51
White, B. (2012). Agriculture and the generation problem: rural youth, employment and the future of farming. Paper for the FAC–ISSER Conference on Young People, Farming and Food, Accra, 19–21 March 2012
World Bank (2011). ICT in agriculture, connecting smallholders to knowledge, network and institutions. E-sourcebook on ICT in agriculture. Report Number 64605. Washington, DC, International Bank for Reconstruction and Development/World Bank
Yin, R. K. (2017). Case study research and applications: Design and methods. Sage publications.
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage Learning.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
