Effect Of Strategic Management Practices On Performance Of Coffee Cooperative Societies In Nyanza Region, Kenya: Moderating Role Of Stakeholders’ Orientation

Abstract

Attainment of organizational competitive advantage and persistent enhancement of sustainable organizational performance has been the central focus of many organizations. A number of cooperative societies suffer common strategic management problems associated with low level of strategic innovation, weak strategic leadership, poor product diversification strategies, and low quality management. The general objective of the study was to determine the effect of strategic management practices on performance of coffee cooperative societies in Nyanza region, Kenya as moderated by stakeholders’ orientation. The study was guided by the following specific objectives, to; determine the effect of product diversification on performance of coffee cooperative societies in Nyanza region, find out the effect of strategic innovation on performance of coffee cooperative societies in Nyanza region, establish the effect of quality management on performance of coffee cooperative societies in Nyanza region, determine the effect of strategic leadership on performance of coffee cooperative societies in Nyanza region, and establish the moderating role of stakeholders’ orientation on the effect of strategic management practices on performance of coffee cooperative societies in Nyanza region. The study was anchored on the stakeholders’, agency and resource based theories. The study was guided by positivism research philosophy. An explanatory survey research design was used to assess the effect of strategic management practices on performance of coffee cooperative societies. The target population was 1239 respondents comprising of the top management personnel in both coffee cooperatives societies and departments of cooperatives and agriculture. Nasiuma formula (2000) was used to determine a sample size of 394 respondents. Questionnaires were used to collect primary data. To ensure face and construct validities the questionnaires were subjected to experts and supervisors scrutiny. A content validity index (CVI) of 0.93 confirmed content validity. Crobanch alpha coefficient of 0.816 was calculated using split-half method to confirm the reliability of the questionnaires. Descriptive statistics (percentages, mean and standard deviation) were used to analyze data while inferential statistics (regression) were used to establish the relationship between variables. Pearson product moment was used to measure strength of relationships between variables. The statistical package for social sciences (SPSS) (version 25) aided in data analysis. Data was presented using frequency tables, figures and graphs. The research findings indicated that strategic management practices had a strong positive and significant relationship with performance of coffee cooperative societies. It was also established that stakeholders’ orientation significantly moderates the relationship between strategic management practices and performance of coffee cooperative societies in Nyanza region. The study concluded that product diversification, strategic innovation, quality management and strategic leadership enhance performance of coffee cooperatives. The study recommended that coffee cooperative societies should allocate more funds for strategic innovation. In addition, the management needs to come up with the best innovative methods so as to keep in line with the changing market demands and needs.