Restructuring Kenyan Micro and Small Enterprises for Manufacturing Advantageous Food Products in a Globally Competitive Landscape
##article.subject##:
Competitive Industry Model, Technology Adoption Predictors, advantageous Product and Micro and Small Food Manufacturing Enterprises
##article.abstract##
Restructuring food manufacturing industry is one of the key strategies prioritized by Kenya to deliver the country’s ambitious economic growth and feeding the soaring population, past 40 million people. The purpose of this paper is to investigate if restructuring Micro and Small Enterprises (MSEs) in food manufacturing along competitiveness and innovativeness would enable the MSEs make advantageous products at the global market. A survey was done on 132 (MSEs) in Busia and Nairobi using semi structured questionnaires. The Cronbach’s alpha found reliability of questionnaires to be at 0.97, an excellent internal consistency of the items. Due to weak information management system of agro-food processors in Busia County, snowballing sampling techniques was used. Fisher sampling techniques was applied on Nairobi County Government given its numerous food manufacturing enterprises. Data was analyzed using Structural Equation Modeling (SEM) by Amos version 21. It showed that the three of forces of Porter’s competitive model causal path was more meaningful than Davis predictors. However, a hybrid of Porter’s and Davis forces gave a better model. According to the model, buyers bargaining power, rivalry from incumbent competitors, perceived ease of use and usefulness formed the best model for MSEs in agro-food manufacturing. The study recommended that stakeholders in agro-food industry should restructure the MSE’s manufacturing processes to address the modern customers’ sophisticated demands and competitors’ complexities. Secondly, technology fabricators should design food manufacturing systems that are ease and useful to the MSEs. Finally the study recommended that a food and beverage administration authority be established to assist food manufacturers, borrowing from Singaporean models
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Bagozzi. (2007). The Legacy of the Technology Acceptance Model and a Proposal for a Paradigm Shift. Journal of the Association for Information Systems , 8(4), 244-254.
Barrett, P. (2007). Structural Equation Modelling: Adjusting Model Fit. Personality and Individual Differences , 42(5), 815-24.
Bentler, M. (2002). EQS Structural Equation Program Manual. Encino, CA: Multivariate Software.
Bentler, M., & Wu, C. J. (2002). EQS 6 for Windows User's Guide. Ecino, CA: Multivariate Software.
Bryman, A. (2012). Social Research Methods. New York: Oxford University Press.
Byrne, M. (1998). Structural Equation Modeling with LISREL, PRELIS and SIMPLIS: Basic Concepts, Applications and Programming. New Jersey: Lawrence Eribaum Associates.
Chin, W. (1998). Issues and opinion on structural equation modeling. MIS Quarterly , 22(1) pp. 7-16.
Chuttar, M. (2009). Overview of the Technology Acceptance Model: Origins, Developments and Future Directions. Sprouts: Working Papers on Information Systems , 9-37.
Cohen, L., Manion, L., & Morrison, K. (2007). Research Methods in Education. New York: Routledge.
Copeland, A., & Shapiro, A. H. (2010). The Impact of Competition on Technology Adoption: An Apples-to-PCs Analysis.
Cornell University, INSEAD & WIPO. (2015). Global Innovation Index, 2015. Effective Innovation Policies for Development. Geneva: World Intellectual Property Organisation.
Cui, L., Zhang, L., & Huang, C. K. (2008). Exploiting IT adoption processes in Shanghai Firms: An Emperical Study. Journal of Global Information Management, 16(2) , 1-17.
Dalken, F. (2014). Are Porter's Five Competitive Forces Still Applicable? A Critical Examination Concerning the Relevance for Today's Business. 3rd IBA Bachelor Thesis Conference (pp. 1-9). Enschede: The Netherlands University of Twente, Facaulty of Management and Governance.
Farrugia, P., Petisor, B. A., Farrokhar, F., & Bhandari, M. (2010). Research Questions, Hypothesis and Objectives. Canadian Journal of Surgery.
Fonseca, F. (2012). Brazil Gain Report. Sao Paulo: US Agricultural Trade Office (ATO).
Fraser, S. (2015). Market Overview: Brazil. Global Analysis Report. Ottawa: Agriculture and Agri-Food Canada.
Fung, H. P. (2013). Using Porter Five Forces and Technology Acceptance Model to Predict Cloud Computing Adoption among IT Outsourcing Service Providers. Internet Technologies and Applications Research , 18-24.
Gaig, W., & Song, X. (2008). The Causal Effects of Education on Technology Adoption: Evidence from the Canadian Workplace and Employee Survey. Toronto: University of British Columbia.
Galbraith, J. (1963). American Capitalism. Harmondsworth: Penguin.
Germain, R., Droge, C., & Daugherty, J. P. (1994). The effect of just-in-time selling on organizational structure: An empirical investigation. Journal of Marketing Research , 471-483.
Germany Trade & Invest. (2015). 2014/2015 The Food & Beverage Industry in Germany. Berlin: Germany Trade & Invest.
Gururaj, R. (2013). Clinical Factors and Technological Barrier as determinants for the intention to use wireless handheld technology in healthcare environment: An Indian Case Study. Australia,4350: University of Southern Queensland.
Hooper, D., Coughlan, J., & Mullen, M. R. (2008). Structural Equation Modelling: Guidelines for Determining Model Fit. The Electronic Journal of Business Research Methods , Vol. 6 Issue 1 53-60.
Jepchirchir, G., & Achoka, J. S. (2015). Influence of Enrolment on Physical Infrastructure in Public Primary Schools in Nandi Central Sub County, Kenya. International Journal of Research in Humanities and Social Studies , 69-73.
Kline, B. R. (2005). Principles and Practice of Structural Equation Modeling. New York: Guilford Press.
Kothari, C. (2004). Research Methodology. Methods and Techniques. New Delhi: New Age International Publishers.
Krueger, N., Relly, M. D., & Carsrud, A. L. (2000). Competing Models of Entrepreneurial Intentions. Journal of Business Venturing Vol. 15 , 411-320.
Lapointe, L. (2006). The dynamics of IT Adoption in a major change process in healthcare delivery. In T. S. Schuring, E-Health Systems Diffussion and use: The Innovation, the User and the USE IT Model. London: The Idea Group Pblishing.
McQuitty, S. (2004). Statistical power and structural equation models in research. Journal of Business Research , 57 (2), 175-83.
Monteiro, C., & Levy, R. (2010). A new classification of food based on the extent and purpose of their process. Public Health Nutrition , 2039-2049.
Mugenda, O., & Mugenda, A. (2009). Research Methods: Quantitative and Qualitative Approaches . Nairobi: Acts Press.
Mukherjee, D., Bajaj, H., Garg, N., & Abraham, J. (2013). Feeding a Billion. Role of the Food Processing Industry. New Delhi: FCCI & AT Kearney.
Munir, A., Saddozzai, A. K., Khattak, B., & Hashim, S. (2011). Porter Five Forces Analysis of Pakistan Mobiles Communication Limited(Mobilink): A Critical Approach. Interdisciplinary Journal of Contemporary Research in Business Vol. 3 No. 5 , 704-712.
Ngiba, C., Dickinson, D., Whittaker, L., & Beswick, C. (2009). Dynamics of Trade between the formal sector and Informal Traders: The case of Fruit and Vegetable Sellers at Natalspruit Market, Ekurhuleni. Sajems Vol. 12 No. 4 , 462-474.
Ogula, P. (2005). Monitoring and evaluation of educational projects and programs. Nairobi: Kermit Publishers.
Otengo, M., Mukulu, E., & Kanali, C. (2015). Influence of new technology adoption on the use of business advisory services in micro and small enterprises in Kenya. International Journal of Economics & Finance , 174-189.
Park, S. Y. (2009). An Analysis of the Technology Acceptance Model in Understanding University Student's Behavioural Intention to use e-learning . Educational Technology and Society Vol. 12(3) , 150-162.
Porter, M. (2004). Competitive Strategy: Techniques for Analysing Industries and Competitors. New York: Free Press.
Porter, M. (2008). The five competitive forces that shape strategy. Havard Business Review , 1-9.
Progress, H., Whilhemia, S., & Tarisai, C. (2013). The Delineation of Porter's Five Competitive Forces Model from a Technological Marketing Perspective: A Case Study of Buffalo City Metropolitan Municipality. Journal of Economics Vol. 4(2) , 169-182.
Republic of Kenya. (2012). National Agribusiness Strategy. Making Kenya's agribusiness sector a Competitive driver growth. Nairobi: Agricultural Sector Coordination Unit.
Shroff, R. H., Deneen, C. C., & Ng, M. W. (2011). Analysis of the technology acceptance model in examining students' behavioural intention to use an e-portfolio system. Educational Technology Vol. 27(4) , 600-618.
Switzerland Global Enterprise. (2013). Food and Beverage Market in Singapore. Singapore: Orissa International Pte Ltd.
Tabachnick, G., & Fidell, L. S. (2007). Using Multivariate Statistics. New York: Allyn and Bacon.
Uaiene, R. N. (2011). Determinants of Agricultural Technology Adoption in Mozambique. Dialogue on Promoting Agricultural Growth in Mozambique (pp. 1-30). Maputo: International Food Policy Research Institute.
UNIDO. (2013). Independent UNIDO Country Evaluation. Republic of Kenya. Vienna: United Nations Industrial Development Organization.
Velthuijsen, J. W., & Janszen, M. (2014). Megatrends impacting the Dutch agrifood industry towards a cleaner, healtheir, safer, smarter and stronger sector. Amsterdam: PriceWaterhouse Coopers.
World Economic Forum. (2016). The Global Competitiveness Report 2015-2016. Geneva: World Economic Forum.
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2018-07-06
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Articles
