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

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