Innovative Strategies, Transformational Leadership And Performance Of Kenya Tea Development Agency Factories In Kenya

Abstract

Kenya Tea Development Agency is an organization whose primary role is to collect plucked tea, process and market tea products on behalf of farmers. Despite the crucial role KTDA plays in Kenya’s economy, the tea sector faces various challenges such as high cost of production, fluctuations in the international market, and COVID-19 pandemic. To effectively improve the performance of the tea industry, innovative strategies are widely acknowledged as one of the key factors for improving productivity and competitiveness of the sector. Despite the ardent attention to innovative strategies, empirical studies linking innovative strategies and transformational leadership are limited in KTDA factories, Kenya. All these put into consideration; there is need to examine innovative strategies and transformational leadership on the performance of KTDA factories in Kenya. This study therefore sought to analyze the nexus between innovative strategies, transformational leadership, and performance of KTDA factories in Kenya. The specific objectives are to establish the relationship between product innovative strategies, process innovative strategies, market innovative strategies, management innovative strategies and performance of KTDA factories in Kenya. The moderating effect of transformational leadership on the relationship between innovative strategies and performance of KTDA factories in Kenya is also put on a scale. The study was premised on Schumpeterian theory of innovation, Dynamic capability theory, and Discovery theory. The study is significant to stakeholders in agricultural sector which includes the government, agricultural firms and small scale tea farmers. A correlational and cross-sectional research design was adopted in this study. The target population was 974 employees from 71 KTDA factories in Kenya. A sample of 283 respondents was drawn from four regions using a stratified sampling method. Data was collected using semi-structured questionnaire administered to employees of KTDA factories in Kenya.The questionnaire was pre-tested to ensure its validity and reliability. An aggregate Cronbach Alpha coefficient of above 0.7 was obtained for all variables, hence the data collection instrument was deemed reliable. Data collected was analysed by use of both descriptive and inferential statistics. Multiple linear regression and moderated regression models were used to test the hypothesis. Correlation analysis was utilized in the study to test the correlation between the variables. Study findings revealed that all the four types of innovative strategies; Product (β = 0.695, R=0.748, p<0.05), Process (β= 0.530, R=0.711, p<0.05), Market (β= 0.501, r=0.746, p<0.05) and Management innovative strategies (β= 0.694, R=0.686, p<0.05) had positive and significant relationship with performance of KTDA.The study also revealed that Transformational leadership had a significant moderating effect on the relationship between innovative strategies and organizational performance (β= 0.115,R=0.857, p<0.05). The study recommends that the government, policy makers,the public sector,stakeholders and other interested parties should make policies that encourage improvement of product innovative strategies, process innovative strategies, marketing innovative strategies and management innovative strategies. To encourage innovative strategies, value creation and change management is fundamental. To drive this effort Transformational leadership has been found to be a must for any organization.Finally,new knowledge has been created,other researchers could protype and use it as a guide for their research.