Journal of
Agricultural Extension and Rural Development

  • Abbreviation: J. Agric. Ext. Rural Dev
  • Language: English
  • ISSN: 2141-2170
  • DOI: 10.5897/JAERD
  • Start Year: 2009
  • Published Articles: 409

Article in Press

Relationship between porter’s competitive forces and advantageous products manufactured by micro and small food enterprises in Kenya

Omillo Francis Okumu, Ng’ang’a Stephen Irura and Maina Faith

The study examined the influence of the three of Porter’s competitive forces (buyers’ bargaining power, suppliers bargaining power and rivalry among existing competitors) on advantageous food products manufactured in Kenya. The study sampled 132 value-addition Micro and Small Enterprises (MSEs) using snowballing and fisher formula in Busia and Nairobi Counties, respectively. The Porter’s industry analysis model informed the conceptual framework. A survey tool containing Likert Scale questions and interview guide was used to measure the MSEs’ gradation in opinion, attitude and behaviour on agro-food industry competition landscape. The data was analyzed using Logit model at a corresponding 5% level of significance using Statistical Package for the Social Sciences (SPSS). The study found out that buyers bargaining power, suppliers bargaining power and rivalry among competitors (as a whole) significantly influenced agro-food processors to produce advantageous product (Wald (1) =41.475, p=.000, sig<.05, 2-tailed), but not as independent stand-alone competitive forces. The study recommends maize, beans and potatoes products as more advantageous raw materials. It also suggests application of economic agglomeration models to address efficiency and competitiveness. Finally, the study recommends establishment of a food and beverage administration authority to support MSEs for export market.

Keywords: Porter’s competitive forces, advantageous product, agro-food industry.