STAKEHOLDER INVOLVEMENT AND FIRM PERFORMANCE: A DYNAMIC CAPABILITIES PERSPECTIVE IN THE HORTICULTURAL SUB-SECTOR IN NAKURU COUNTY, KENYA
STAKEHOLDER INVOLVEMENT AND FIRM PERFORMANCE: A DYNAMIC CAPABILITIES PERSPECTIVE IN THE HORTICULTURAL SUB-SECTOR IN NAKURU COUNTY, KENYA
David Guchu Ndung’u - MBA Candidate, School of Business, Economics & Tourism, Kenyatta University Kenya
Godfrey Muigai Kinyua (PhD) - Senior Lecturer, School of Business, Economics & Tourism, Kenyatta University Kenya
ABSTRACT
The horticultural sub-sector remains a vital component of Kenya’s agricultural industry, serving as a key source of employment and foreign exchange earnings while sustaining numerous livelihoods across the value chain. Despite its strategic importance, the performance of horticultural firms has shown concerning trends, particularly in market share, sales volume, and customer satisfaction. Many firms have reported inconsistent sales volumes, reflecting market fluctuations and inefficiencies in production and distribution systems. Recent years have also witnessed a steady decline in export performance and revenue generation, signaling underlying challenges affecting the sector’s competitiveness. Moreover, fluctuating levels of customer satisfaction indicate a possible misalignment between product quality, market expectations, and service delivery. In this sense, the study's main goal was to find out how stakeholder involvement and firm performance. The study's main theoretical foundation is the resource-based view of the company, which is supported by stakeholder theory. The framework for guiding the research strategy intended to answer the study's research questions was provided by an explanatory research design. 570 management staff members from 19 horticulture companies in Nakuru County, including senior, middle, and lower managers, made up the target population. A stratified proportional sampling strategy was used to acquire a representative sample of 235 individuals. The face, content, construct, and criterion validity of the research instrument were all carefully assessed. A pilot study was carried out prior to the main data collection to ascertain the practical applicability and reliability of the questionnaire. A structured questionnaire was used to collect the primary data for the investigation. Descriptive statistics were employed to measure the characteristics of the study participants. Linear regression model was used for inferential analysis in order to test the research objective at a 95% confidence level. For clarity and ease of interpretation, the research findings were displayed using tables and figures. The results of the study showed that stakeholder involvement significantly affect firm performance. To enhance performance, management should formulate and implement policies that promote inclusive participation. Emphasis should also be placed on practices that encourage stakeholder expectations.
