EFFECT OF STRATEGIC FORESIGHT ON ORGANIZATIONAL PERFORMANCE IN FOOD PROCESSING COMPANIES IN MERU COUNTY

Abstract

Despite the existence of processing companies in Kenya, there have been increased imports of processed food products, while exports of food and beverages, have declined. The study examined the influence of strategic foresight on organizational performance of food processing companies in Meru County. The specific objectives determined the influence of trend analysis practices, scenario planning practices, horizon scanning practices, and back casting practices on the organizational performance of food processing companies in Meru County. The three theories of the study were, contingency, resource-based view, and strategic choice theories. The research design was descriptive while the target population comprised of 78 food processing companies in Meru County. The respondents were 97 directors, 121 operations managers, 99 quality assurance managers, 116 compliance managers, 132 marketing managers, and 121 risk managers. The respondents were sampled through a simple random method, and the sample size was determined through Slovin's formula. This led to 78 directors, 93 operations managers, 79 quality assurance managers, 90 compliance managers, 99 marketing managers, and 93 risk managers. Directors answered open- and closed-ended structured questionnaires, while the managers answered closed-ended questionnaires. A pilot test was conducted in 8 processing companies in Tharaka Nithi County. The information from the questionnaires was analyzed using SPSS software version 27. Descriptive statistics such as frequencies, percentages, mean, and standard deviation were conducted. Thereafter, Pearson correlation and multiple regression analysis were done. The study found that strategic decision-making was slow due to weak market intelligence systems, poor training in resource allocation, and underused technology. Managers relied on intuition rather than structured protocols, lacking training in effective strategy implementation. The study recommends enhancing training in market analysis, better use of existing technology for planning, exposure to external corporate interactions, and bringing in experts to provide refresher courses on strategic management and back casting.