Business Processes Strategy and Performance of Agri-Based Cooperatives in Kenya
DOI:
https://doi.org/10.53819/81018102t5389Abstract
In Kenya's dynamic agricultural sector, the strategic decisions of cooperatives are pivotal in shaping their performance and long-term sustainability. With a growing emphasis on evidence-based decision-making, there is heightened interest in agricultural cooperatives across the country. The Cooperative Alliance of Kenya (CAK) highlights the importance of data-driven approaches over intuition, as these provide a significant competitive advantage. However, despite many organizations collecting cooperative-related data, they often lack the expertise to analyze it effectively and extract actionable insights. This study explored the effect of business processes strategy on the performance of agri-based cooperatives in Kenya. The study was anchored on strategic choice theory which provides the foundation for understanding how business processes strategy influences organizational performance. Data was collected from 144 respondents in management roles across agricultural cooperatives. Primary data were gathered through questionnaires, and secondary data were derived from financial reports of the cooperatives covering 2020 to 2025. A pilot study was conducted to validate the data collection tools, employing Cronbach's alpha for reliability and the Kaiser-Meyer-Olkin test to confirm sampling adequacy. Data analysis was performed using SPSS version 26, involving data coding and analysis to produce descriptive and inferential insights. Descriptive statistics, including means and standard deviations, were used to summarize the data. Inferential statistics, including correlation and regression analyses, were employed to identify relationships. The study found a strong positive correlation between business processes strategy and cooperative performance (r = 0.640, p = 0.000), with business processes strategy explaining 46.2% of the variance in performance outcomes (R² = 0.462, β = 0.592, p = 0.000). The study concludes that systematic process optimization, customer relationship management, and operational enhancement significantly improve cooperative performance across multiple dimensions. Managers should prioritize internal process optimization, invest in automation technologies, establish KPIs for continuous improvement, and foster cross-functional collaboration through member engagement and innovation initiatives. Policymakers should develop infrastructure, establish cooperative support hubs offering technical assistance and digital tools, provide incentives for process innovation, and create regulatory frameworks supporting modernization, aligning with Kenya's Vision 2030 and Sustainable Development Goals to promote agri-based cooperative development and sustainability.
Keywords: Business processes strategy, performance, agri-based cooperatives in Kenya
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