Effect of Value Chain Management Practices on Operational Performance of Telecommunication Firms in Kenya

Abstract

The main aim of the research is to assess the effects of value chain management practices on operational performance. The study was governed by the following objectives: to establish the value chain practices and their influence on operational performance and to determine the challenges faced in adoption of value chain management practices in telecommunication firms in Kenya. The study applied correlational research design to assess effects of value chain on operational performance. The target population was 12,230 (cash transfer agents and outlet shops) in the telecommunication firms in Kenya. Simple random sampling technique was used to recruit 100 respondents. Semi-structured questionnaire was used to collect primary data. They were administered through drop and pick method. The data collected was then analysed and significance tested by use of inferential statistics using statistical package for social sciences (SPSS) version 23 and Microsoft office Excel. Reliability, validity and diagnostic tests were done on the data to determine its suitability. Linear regression analysis was used to examine the relationship between organizational performance and the independent variables. The findings showed that telecommunications firms carry out value chain management practices at different levels and that they have a positive effect on operational performance. It was established from the study that the main challenge of adoption of value chain management practices comprise cost reduction. The study recommends that value chain management practices be applied because they lead to positive results for various firms. Policy makers in the various levels should develop policies that incentivise adoption of value chain management practices at various levels thus ensuring telecommunication firms are more rewarding. Value chain management practices are vital for any organization and relationship to operational performance via other models is a recommendation for further research.