An Empirical Survey on the Effect of Strategic Resources on Performance of Agribusiness Companies Listed at the Nairobi Securities Exchange in Kenya

Abstract

The agribusiness sector in Kenya is a vital contributor to the economy, accounting for over 20% of the annual GDP. Despite its importance and substantial government support, the sector faces numerous challenges. A review of the literature reveals a gap in understanding the impact of strategic resources on the performance of agribusiness companies. To address this gap, the present study aimed to examine the effect of strategic resources on the performance of agribusiness companies listed on the Nairobi Securities Exchange (NSE) in Kenya. The study utilized a mixed-method research design and was grounded in the Resource-Based View (RBV) theory and the Balanced Scorecard Model. The target population comprised all six agribusiness companies listed on the NSE, with 120 management staffmembers—including directors, departmentheads, and middle to supervisory-levelmanagers—participating as respondents.Quantitative data collected from closeended questions were analyzed using SPSS (Version 28.0), while qualitative data from open-ended questions were categorized into themes and broad categories. The strength of the model was assessed using the R² statistic, with the F-statistic computed at a 95% confidence level and hypothesis testing based on p-values at the 5% significance level. The findings revealed that strategic resources have a positive impact on the performance of agribusiness companies listed on the NSE. Based on these results, the study recommends that agribusiness firms enhance their strategic resources by investing in resources that are valuable, rare, inimitable, and nonsubstitutable.