Abstract
Although tea is the leading cash crop in Kenya, the industry faces significant challenges. Although application of blue ocean strategy (BOS) could redress some of its problems, few studies have explored the question. This study investigated the relationship between BOS and sustainable performance of the Kenyan tea industry. The study applied the Four Action Framework (FAF) together with elements of Six Searching Paths-Frameworks (SSPF). The strategies resulting from SSPF were fashioned into the FAF, and validated by employees of tea estates in Nandi County. The sample consisted of 240 workers, selected from a target population of 1150, by stratified random sampling. The study found that all predictors in the regression model, eliminate (β=0.291), reduce (β=0.314), raise (β= 0.435), and create factors (β=0.344) had a significant and positive effect on sustainable performance. Thus, implementation of the four factors could lead to sustainable performance of Kenya’s tea industry. The study concluded that branding tea, adding value to it, increasing domestic consumption, productivity and eliminating long and inefficient supply chain would lead to sustainable performance. The study recommends that the tea industry should add value and brand its tea. Key words: Tea, blue ocean strategy (BOS), red ocean strategy (ROS), sustainable performance.
Highlights
Sustainable performance remains an overriding objective of many businesses
This study investigated the relationship between blue ocean strategy (BOS) and sustainable performance of the Kenyan tea industry
The current strategy canvas showed that compared to India and Sri Lanka, the Kenyan tea industry competes poorly with respect to domestic tea consumption, branding and farmer returns
Summary
Sustainable performance remains an overriding objective of many businesses. Because of its multidimensional nature, performance has defied a universal definition (Richard et al, 2009). According to Ahmed and Shaffiq (2014), organizational performance is associated with success and endurance of firm. They define it as the actual results/outcomes of an organization as measured against its targets. Organizational performance has been described as an organization‟s ability to acquire and utilize its scarce resources and valuables as expeditiously as possible in the pursuit of its strategic planning (Griffins, 2006; Richard et al, 2009). Sustainable performance can be conceptualized as achieving
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