Influence of Strategic Management Drivers on The Growth of Coffee Export Processing Firms in Rwanda

Abstract

The purpose of this research which was highlighted in the general objective of this study was to determine the influence of strategic management drivers on the growth of coffee export processing firms in Rwanda. This study was guided by the following specific objectives which indicated the selected strategic management drivers of this study: (1) Determine the influence of strategic value addition on the growth of coffee export processing firms in Rwanda; (2) Identify the influence of product and markets diversification on the growth of coffee export processing firms in Rwanda; (3) Determine the influence of business environment on the growth of coffee export processing firms in Rwanda; and (4) Identify the influence of strategic human capital on the growth of coffee export processing firms in Rwanda. The study was based on resource based view theory, dynamic capabilities theory, human capital theory, agency theory, stakeholder theory, and growth theory. The study used descriptive and correlational research design. The target population of the study comprised of 91 respondents ranging from senior managers of coffee export processing firms to staff from the National Agricultural Export Development Board (NAEB), representatives from the Ministry of Finance and Economic Planning (MINECOFIN) and the Ministry of Trade and Industry (MINICOM), that are directly linked to activities related to coffee export and processing. Primary data was collected using questionnaires which were administered to a sample of 91 respondents because of the small number of the target population. Questionnaires which were administered through drop and pick method. The sampling techniques which were used were purposive sampling for staff under Ministries and NAEB, and a census for coffee export processing firms. Pilot study was carried on nine (9) respondents to check for the validity and reliability of the research instruments. Reliability was tested using Cronbach’s Alpha. Collected data was classified and tabulated according to research objectives. Afterwards, data were analyzed using SPSS. Descriptive statistics were used for preliminary analysis and inferential statistics such as Pearson’s correlation, ANOVA, linear and multiple regression analysis were used for further analysis. The research hypotheses were tested at 95% confidence level. For all the four independent variables, the alternative hypotheses were taken to hold, thus the conclusions drawn from the study findings are that strategic management drivers taken individually or combined, i.e. strategic value addition, product and markets diversification, business environment and strategic human capital, have a significant and positive influence on the growth of coffee export processing firms in Rwanda. Therefore, the study recommends the adoption of the selected strategic management drivers in order to enhance the growth of coffee export