Strategic Capabilities and Organizational Performance of Seed Companies in Trans Nzoia County, Kenya.

Abstract

Seed companies play an important role in ensuring food security and economic development of a country. However, these companies face challenges which have affected their overall organizational performance. These challenges include declining agricultural land, low production and productivity, poor marketing, market uncertainties, inadequate demand-driven research, financial instability, stiff competition and counterfeit seed, among others. The study sought to investigate the effect of strategic capabilities on organizational performance of Seed Companies in Trans Nzoia County, Kenya. Specifically, the study sought to determine the effect of marketing capabilities, technological capabilities, operational capabilities and management capabilities on organizational performance of seed companies. The study adopted resource-based view theory, dynamic capabilities theory and the balanced scorecard model. Descriptive and explanatory research designs were employed to establish and explain the relationship between variables. The study used a census with a target population of 120 staff from the six seed companies in Trans Nzoia County. A Self-administered close ended questionnaire was used to collect primary data. Validity and reliability of the questionnaire was conducted during pilot testing. Validity was tested using content and face validity while reliability was tested using Cronbach’s alpha at a threshold of 0.70. Data was analysed using descriptive and inferential statistics analysis. The study concluded that marketing capabilities, technological capabilities and operational capabilities have a significant positive effect on organizational performance of seed companies in Trans Nzoia County while management capabilities have no significant effect on organizational performance of seed companies in Trans Nzoia County