STRATEGIC RISK MANAGEMENT AS A DRIVER OF PERFORMANCE: INSIGHTS FROM SEED PROCESSING COMPANIES IN NAIROBI CITY COUNTY, KENYA
STRATEGIC RISK MANAGEMENT AS A DRIVER OF PERFORMANCE: INSIGHTS FROM SEED PROCESSING COMPANIES IN NAIROBI CITY COUNTY, KENYA
Dancun Ndungu Mwaniki - Master’s Student, Department of Business Administration, Kenyatta University, Kenya
Dr. Anne Muchemi (PhD) - Senior Lecturer, Department of Management Science, Kenyatta University, Kenya
ABSTRACT
The seed processing sector is crucial for agriculture and makes a substantial impact on food security and economic growth. However, during the last four years, key performance metrics among significant players in the seed processing business have declined. In recent years, return on investment (ROI) has significantly decreased, which is indicative of seed processing companies' decreased profitability and lower financial returns. This study examined the effect of strategic risk management on the performance of seed processing companies in Nairobi City County, Kenya. The objectives were; to assess the effect of risk identification, risk assessment, risk mitigation and risk monitoring on the performance of seed processing companies in Nairobi City County, Kenya. The research was underpinned by the Modern Portfolio Theory, Contingency Theory, Resource-Based View (RBV) and Balanced Scorecard Model. A descriptive research design was utilized in the research. The target population consisted of 15 seed processing companies where eight departmental heads per company were considered as the respondents targeted. Therefore, the total target group consisted of 120 department heads from 15 seed processing firms. A census sampling method was utilized since the population was limited and feasible to manage. Primary data were gathered through semi-structured questionnaires. The study revealed strong adoption of strategic risk management practices among seed processing companies in Nairobi City County, with risk monitoring (β = 0.354), risk assessment (β = 0.332), risk mitigation (β = 0.308), and risk identification (β = 0.289) all exerting a positive and statistically significant influence on performance of seed processing firms (p < 0.05). The study concluded that strategic risk management, encompassing risk identification, risk assessment, risk mitigation and risk monitoring, significantly influences the performance of seed processing companies in Nairobi City County, Kenya. Seed processing companies should prioritize strengthening their risk identification systems, invest in robust risk assessment frameworks, enhance risk mitigation strategies and establish continuous risk monitoring mechanisms to build organizational resilience improve decision-making and sustain long-term operational performance in an increasingly volatile agricultural business environment.
