Using Jovanovich’s Learning Effects Model to Predict Advantageous Product among Micro and Small agro-food manufacturing Enterprises in Kenya

Abstract

Advantageous product is a product with a competitive edge over others in the market. It attracts more revenue for the enterprise, fulfils sophisticated customer demands and is highly differentiated. In this paper, enterprise’s size and age influence on advantageous food products for local and export markets are examined. Formality is considered as a moderating factor. The study sampled 132 food-manufacturing Micro and Small Enterprises (MSEs) in Busia and Nairobi Counties. The researcher used Jovanovich’s Learning Effect Model to inform the conceptual framework. A seven Likert Scale questionnaire was used to measure the MSEs’ gradation in opinion, attitude and behaviour on size, age, registration and how they influenced their advantageous product. Research instruments’ reliability was tested by chronbach’s alpha and realized 0.97 which was greater than 0.70 showing excellent internal consistency . Due to weak information management system of agro-food processors in Busia county, snowballing sampling techniques was used and fisher sampling techniques formula at standard normal deviate of 1.96 on Nairobi County Government given its numerous food manufacturing enterprises. The data was analyzed using moderated Logit model at a corresponding 5% level of significance using Statistical Package for the Social Sciences (SPSS) version 21.0. The study found out that enterprise size, age and registration status (as a whole) significantly influenced agro-food processors to produce advantageous product ( wald (1) = 41.297 , p=.000, sig<.05, 2-tailed) but not as independent stand alone factor. The study recommends census of all agro-food manufacturing enterprises in Kenya. It also suggests combination of size and age factors in the registration and development of the enterprises. Finally the study recommends establishment of a food and beverage administration authority to support MSEs for export market.