The Effect of operational efficiency on self sufficiency of dairy cooperatives: a case study of Lelan Dairy in West Pokot County, Kenya

Maket, Hillary Kipkorir
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Strathmore University
Dairy cooperatives continue to face challenges on sustaining self- sufficiency despite their fundamental role in improving small holder farmer’s livelihoods around the world. Self-sufficiency is an important aspect of an organization as it determines its extent of independence in sustaining operations without external support while retaining competitive advantage in a dynamic business environment. One of the determinants of self-sufficiency in an organization is operational efficiency which depends on investment and expenditure management and staff productivity. This study sought to determine the effect of operational efficiency on self-sufficiency of dairy cooperatives in Kenya. The specific study objectives were: To determine the effect of investment management on self-sufficiency; To investigate the effect of expenditure management on self-sufficiency; To examine the influence of staff productivity on self-sufficiency using Lelan Dairy Cooperative in West Pokot County, Kenya. The study adopted descriptive research design using a case study. The target population was 5,313 registered and members of the cooperative. The study sample size was 372 respondents. Questionnaires and interview guides were used for primary data collection while secondary data was collected through review of audited financial reports. Analysis was done using descriptive statistics, thematic and content analysis, and Spearman’s coefficient of correlation. The results showed existence of a strong positive relationship between investment management and staff productivity and self-sufficiency. Spearman’s test revealed a correlation coefficient value of 0.600 and 0.700, respectively. Besides, there was a moderately positive effect between expenditure management and self-sufficiency with coefficient value of 0.510. The study limitation was that research data depended on the honesty and accuracy of respondents, but with assurance of anonymity and proper use of findings, researcher is optimistic they gave accurate data. It is recommended that policy makers, leadership and managers should develop and implement policies that promote investment management, expenditure management and staff productivity best practices both at the organizational and country level.
A dissertation submitted in partial fulfillment for the award of the degree of Master of Management in Agribusiness, Strathmore University
Dairy Cooperatives, Operational Efficiency, Staff productivity, Investment Management, Expenditure Management, Self-Sufficiency