Marketing strategies, environmental dynamics and performance of banana small scale farmers in muranga and meru counties,kenya

Abstract

The study objectives were to determine the effects of marketing strategies on the small scale farmers’ performance in the banana markets in Murang’a and Meru Counties. To determine the effect of environmental dynamics on marketing strategies in the banana industry and to examine the joint effects of marketing strategies and environmental dynamics on the performance of the banana industry. The study also sought to establish the moderating effect of firm characteristics on the relationship between market strategies and firm performance; assess the mediating effect of marketing strategies on the relationship between environmental dynamics and performance and finally, establish the joint effect of marketing strategies, firm characteristics, and external environmental factors on firm performance. The study population comprised 384 respondents from Meru County and 400 respondents from Murang’a County. A descriptive survey was used.Primary data were collected using semi-structured questionnaires. Data were analyzed using descriptive statistics, inferential statistics and regression analysis. The results of the study revealed that market strategy influences performance. The relevant results also showed that the external environmental factors directly influence performance and also moderate the relationship between market strategy and performance. In addition, the results revealed that the market research partially mediate the relationship between market strategy and performance. The results showed that firm characteristics do not influence firm performance nor moderate the relationship between market orientation and marketing strategies. Finally, the joint effect of marketing strategies, firm characteristics and external environmental factors was greater than the individual effects of the independent, intervening and moderating variables on performance. The study has made contribution to theory, policy and practice in relation to marketing in general and market strategy specifically. The study offered further clarification into the relationship between marketing strategy, firm characteristics, external environmental factors and performance. The research was not without limitations. The selection of the study variables was not exhaustive. The use of subjective performance measures, a relatively small population, use of a descriptive cross-sectional research design and single key-informant approach, testing of marketing strategy as a single concept put constraints on the generalizability of the results. Future research should seek to address these limitations by inclusion of the additional factors, use of a longitudinal research design, objective performance measures, multiple informant approach and testing of marketing strategies as a configuration concept. Replication of the study and examining the relationship between marketing strategies and other strategic business orientations, marketing and competitive strategies could serve as a useful reference for future research