EFFECT OF COLLABORATION ON FINANCIAL PERFORMANCE OF PUSH-PULL TECHNOLOGY SMALLHOLDER FARMS IN WESTERN KENYA
Abstract
Smallholder farmers in Kenya, comprising approximately 60% of the farming population, encounter various challenges that hinder their financial performance, including high input costs, limited market access, inadequate volume-to-market management, pests and weed infestation, land degradation, increased production chain losses among others. This study aimed to analyze the integration of farmers (producers) with other direct actors in the PPT value chain through collaboration, commitment, and coordination and its impact on their financial performance. The study objective is to determine the effect of smallholder PPT farmers value chain collaboration on financial performance. It was premised on the Value chain theory. A sample size of 121 PPT farmers were used. Structured questionnaires were administered to collect information on the study constructs. The study adopted a correlational research design, to allow for quantitative association and contribution of variables. Multiple linear regression and correlation analysis were used to determine the existence of significant relationship between the independent and dependent variables at alpha value of 0.05 (95% confidence level). The results established that collaboration significantly affect ROI with p values of less than 0.05. The study concludes by emphasizing the need for the development of farmer-centric policies and operational regulations in order to reduce costs and increase profits. Moreover, it encourages broader adoption of PPT and farmers' engagement in integrative farming systems as a way of making smallholder farming more profitable. By improving value chain integration, smallholder farmers can enhance their financial performance, increase agricultural productivity, reduce postharvest losses, and promote sustainable farming practices, which will increase the financial performance of the smallholder farmers.
Keywords: Collaboration, Push-Pull Technology, Smallholder Farms
CITATION: Oliech, W. A., Ombok, B. O., & Aila, F. (2024). Effect of collaboration on financial performance of push-pull technology smallholder farms in western Kenya. The Strategic Journal of Business & Change Management, 11 (4), 226 – 235. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3077
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