Effect of Value Chain Management Practices on Performance of Medium and Large Scale Retail Outlets in Nakuru County, Kenya

Nancy Wanjiru Thuku ,Henry Kombo

doi:10.7176/ejbm/11-14-10

Abstract

Current research in the field of strategy suggests that efficient and effective value chain management practices are critical in enhancing organizational performance. However, past empirical studies have not focused on the effect of value chain management practices and organizational performance, particularly in retail outlet sector. The overall objective of this study was to determine the effect of value chain management practices on performance of medium and large scale retail outlets in Nakuru County. The study was based on the resource-based view theory. The study employed correlational research design. The population of the study was 43 medium and large scale retail outlets. Census study was carried out among 43 medium and large scale retail outlets in Nakuru County, Kenya. Primary data was collected using close-ended questionnaires. The results revealed positive and significant relationship between value chain management practices and organizational performance. It is concluded that while internal value chain activities need to be the key vision of value chain management practices in firms, all value chain management practices dimensions should be combined for a greater increase in organizational performance. Keywords: Value chain management practices, Organizational performance, Resource-based view theory, Medium and Large scale retail sector, Kenya. DOI : 10.7176/EJBM/11-14-10 Publication date :May 31 st 2019

Highlights

There is increased sophistication in the shopping pattern of consumers, which has resulted in big retail chains coming up in the international arena
5.0 Conclusion The overall objective of this study was to determine the effect of value chain management practices on performance
The results reveal that value chain management practices has a positive and significant effect on organizational performance, which supports hypothesis HA4

Summary

Introduction

There is increased sophistication in the shopping pattern of consumers, which has resulted in big retail chains coming up in the international arena. Global players like Wal-Mart and Tesco have set pace in the way retailing is done to meet the ever changing consumer taste and preferences. The retail growth is being driven by changes in lifestyle, surge in income and the advent of devolution, which is supported by favourable demographic patterns (Liedholm 2001). Organizations begin to realize that it is not enough to improve efficiencies within an organization, but their whole value chain has to be made competitive. This research gives emphasis on the impact of value chain management practices on organization performance and firm competitiveness

Objectives

Methods

Results

Conclusion