Strategic Risk Management As A Source Of Competitiveness Of Small Scale Milk Distributors In Meru County, Kenya

Abstract

The aim of the study was to institute how strategic risk management affects competitiveness of small scale milk distributors in County of Meru, Kenya. Survey research design was adopted.142 milk suppliers to the main milk buyers formed the population of the study. Stratified random sampling was used and a sample of 71 was obtained. Questionnaire was the data collection tool and 50 questionnaires were returned, a response rate was 70.4%.Data was first subjected to normality tests since most statistical tests usually assume normality of data. This study’s data analysis didn’t assume so. Shapiro-Wilk normality test, Detrended normal Q-Q normality plot and histogram was used. The data was found to be normal. This warranted the usage of parametric tests. Regression analysis was conducted. From ANOVA, the strategic management factors were found to have an effect on competitiveness for the small scale milk distributors. The effect was found to be negative from the co-efficients of the model. The study concluded that indeed there is a negative significant relationship between strategic risk management factors and competitiveness of small scale milk distributors in Meru County. The study recommends stakeholders in the milk industry especially the small scale milk stakeholders to use the findings thereof in this study for policy making. The government, locals in the dairy farming are also recommended to use findings of this study in various areas of decision making.