Revista de Economía y Negocios

Effect of Strategic Product Development Practices on Competitiveness of Kenyan Tea in the Global Market

Abstract

Esther Wanjiru Maina

Kenyan black CTC tea is applauded globally as a high quality product available all year round and sold as a blend and not as an original tea. The core objective of the study was to examine the effect of strategic product development practices on competiveness of Kenyan Tea in the global market. The study used cross-sectional survey design. The target population comprised of all 189 members of the East Africa Tea Trade Association (EATTA) who participate in the tea auction at Mombasa. Stratified sampling technique was used to select the study sample. Purposive sampling technique was used to select the managers who represented both the small-scale and large-scale producers. The sample was obtained using Slovin’s formula (1960); n=N/(1+Ne2). Structured and unstructured questionnaire was used to collect primary data. Pilot study tested for the validity and reliability. Cronbach’s Coefficient Alpha (α) was used to determine internal consistency. Collected data was analysed using SPSS to generate descriptive and inferential statistics. Pearson correlation coefficient (r) was derived while coefficient of determination (R2) was used to measure the amount of variation of the variables. The study findings indicated weak positive relationship of 31.0% between Strategic Product Development practices and Competitiveness. The study revealed that 1% change in Strategic product development practices decreased competitiveness of Kenyan in the global market by 0.089 units. Hence the conclusion that competitiveness of Kenyan Tea in the global market was influenced by other factors other than strategic product development Practices. The study recommended that other than strategic product development practices, the Kenyan Tea industry players should diverge from a long linear supply chain to a value network in order to make Tea a ‘hero’ crop and enable creation of a more sustainable industry and counter the escalating global competition.