Strategic Management Practices and Employee Performance of Fresh Produce Exporting Companies in Murang’a County Kenya
DOI:
https://doi.org/10.53819/81018102t5392Abstract
The research project analyzed the impact of strategic management practices on employee performance within fresh produce exporting companies in Murang'a County, Kenya. The study was motivated by persistent performance gaps and a disconnect between existing HR policies and operational demands in Kenya's €1.2B fresh produce sector. The primary objective was to evaluate the effect of four key strategic practices—performance-based incentives, leadership development, Work-Life Balance (WLB) & wellness programs, and talent retention strategies—on employee performance. The study adopted a descriptive and explanatory research design guided by the Resource-Based View (RBV) and High-Performance Work Systems (HPWS) theories. A stratified proportionate random sample was drawn from a target population of 230 employees. Primary data was collected from 70 valid respondents using structured questionnaires, achieving a 92.1% response rate. Data analysis was conducted using SPSS, employing descriptive statistics, Pearson correlation, and multiple linear regression. Findings indicated that the strategic management practices collectively explained 68% of the variance in employee performance (Adjusted R² = 0.65, F = 32.5, p = 0.001), with all four independent variables having statistically significant positive effects on employee performance. The most impactful practices were performance-based incentives (β = 0.30, p = 0.001) and leadership development (β = 0.25, p = 0.001), followed by talent retention strategies (β = 0.20, p = 0.003) and WLB & wellness programs (β = 0.15, p = 0.030). Descriptively, WLB & wellness programs received the lowest mean satisfaction score from employees (Mean = 3.20). The study concludes that strategic management practices are substantial predictors of employee performance in fresh produce exporting firms, with performance-based incentives and leadership development serving as the most impactful levers for enhancing productivity and retention. The study recommends that companies should design fair and transparent incentive schemes directly linked to measurable productivity metrics and invest in comprehensive leadership development programs that include soft skills such as supervision, conflict resolution, and coaching. Additionally, organizations should prioritize improving work-life balance programs through flexible shift scheduling and adequate rest periods, particularly during peak export seasons, while policymakers should establish supportive frameworks that incentivize responsible HR practices and enforce standards on working hours and employee welfare in the horticultural export sector.
Keywords: Strategic management practices, employee performance, fresh produce exporting companies, Murang’a County, Kenya
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