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EFFECT OF TECHNOLOGICAL INNOVATION ON EXPORT VALUE ADDITION IN TEA SUBSECTOR IN KENYA


Charles Kirimi Mbui


Jomo Kenyatta University of Agriculture and Technology

P. O. BOX 62000 – 00200

NAIROBI, KENYA

 

Prof. Gregory S. Namusonge


Jomo Kenyatta University of Agriculture and Technology

P. O. BOX 62000 – 00200

NAIROBI, KENYA

 

Dr. Fred Mugambi


Jomo Kenyatta University of Agriculture and Technology

P. O. BOX 62000 – 00200

NAIROBI, KENYA

 

 

CITATION: Mbui, C. K., Namusonge, G. S. & Mugambi, F. Effect of Technological Innovation on Export Value Addition in Tea Subsector in Kenya. International Journal of Arts and Entrepreneurship 4 (10), 126-136.

 

 

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Abstract

The general objective of this research was to study the effect of strategic management strategies on export value addition in the tea subsector in Kenya. Specifically, the study sought to evaluate the effect of technological innovation strategies on value addition for Kenyan tea exports. The study used a descriptive survey design. The target population was the entire cadre of employees in the top and middle level management in all the registered tea factories, tea exporters and tea packers in Kenya. The sampling frame for this study consisted of all the top and middle management employees of all registered tea factories, tea exporters and tea packers in Kenya. Data was collected from human resource departments of the sampled organizations. Two questionnaires were administered to randomly sampled employees in the cadres of senior management and middle management. Additionally, this study used stratified random sampling technique to categorize respondents from the three different subsectors so as to increase the chances of getting reliable and accurate information. Primary data through use of a likert scale questions was the main instrument of data collection which underwent pilot study to test the validity and reliability of the research instrument. After collecting data through questionnaires, it was prepared in readiness for analysis using statistical package for social sciences (SPSS) to generate descriptive and inferential statistics. Data was summarised using percentages, mean and standard deviation while F-tests was used to test the hypothesis. This was done using step by step method at 95% level of confidence. Pearson’s product moment correlation (r) was derived to show the nature and strength of the relationship of the variables where Coefficient of determination (R2) was used to measure the amount of variation in the dependent variable explained by the independent variable. All the analysis was done using SPSS statistical package. The study findings indicated that the management at tea subsector were concerned with attaining high profits and thus improved performance due to exportation of value added teas. The study findings indicated that technological innovation is a key driver in determining export value addition in tea subsector. This was evidenced by the responses from the respondents who agreed that their companies had created a centre of excellent for idea generation and innovation. Technology has been found to be the lifeline of any efficient operations of a successful company. It is therefore possible to conclude that the firms had invested in management information system such as ERP which facilitated flow of information. By embracing technology the organization can lead to doing online business which is made faster and easier by use of new technological changes.

 

Key words: Technological Innovations, Export Value Addition, Strategic Management Practices


 

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