ROLE OF OFFENSIVE AND HOLD STAKEHOLDER MANAGEMENT STRATEGIES ON OPERATIONAL PERFORMANCE OF SMALLHOLDER TEA SECTOR IN KENYA
Abstract
The study sought to evaluate the role of offensive and hold stakeholder management strategies on operational performance of smallholder tea sector in Kenya. It was established that exclusive use of either offensive or hold strategy had a positive and significant relationship with performance of smallholder tea sector in Kenya. It was also established that stakeholder management strategies collectively had no significant influence on the performance of smallholder tea sector in Kenya. However, the study results established that stakeholder engagement had a strong moderating effect on the relationship between offensive and hold stakeholder management strategies and performance of smallholder tea sector in Kenya. Offensive and hold stakeholder management strategies enhanced performance of smallholder tea sector in Kenya in terms of reduction of costs, new product varieties, sales volume and quality of tea. Contribution of the current study would include the addition to knowledge of strategic management. The exploration of the linkage between stakeholder management strategies and performance of smallholder tea sector in Kenya particularly in developing countries which provide not only significant contribution to the strategic management literature but also enables managers to employ the right stakeholder management strategies for their firms to compete in the fast changing environment. Another major contribution is underlying assumption of Stakeholder Theory as used in this study was that stakeholder management strategies of offensive, hold and stakeholder engagement strategies influence performance of smallholder tea sector when used exclusively and for firms to achieve performance they must choose either of these stakeholder management strategies. The study recommended that policy managers of these firms pay careful consideration to aligning their stakeholder management strategies and in consideration with the stakeholder engagement as one of the environmental variables so as to enhance performance in this ever changing global business world.
Key Words: Offensive Strategies, Hold, Stakeholder Engagement
CITATION: Kariuki, J. N., Wario, G., & Odhiambo, R. (2018). Role of offensive and hold stakeholder management strategies on operational performance of smallholder tea sector in Kenya. The Strategic Journal of Business & Change Management, 5(4), 1932-1944.
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.999
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