European Journals of Business Management

THE ROLE OF FIRM OWNERSHIP TYPE IN THE ADOPTION OF MECHANICAL TEA HARVESTING TECHNOLOGY IN THE TEA SUBSECTOR IN KENYA

Meshack K. Misoi
Jomo Kenyatta University of Agriculture and Technology
Kenya
Email: This email address is being protected from spambots. You need JavaScript enabled to view it. – Corresponding Author

Dr Wario Guyo
Jomo Kenyatta University of Agriculture and Technology
Kenya

Dr George Orwa
Jomo Kenyatta University of Agriculture and Technology
Kenya


CITATION: Misoi, K. M., Guyo, Wario., Orwa, George., (2015) The Role of Firm Ownership Type in the Adoption of Mechanical Tea Harvesting Technology in the Tea Subsector in Kenya. European Journal of Business Management. 2 (3), 87-103.

ABSTRACT:

Adoption of mechanical tea harvesting technology in the tea subsector in Kenya has been identified as an option that can stem declining profitability caused by rising cost of production which is largely driven by labour costs. The uptake of this technology however is surprisingly low. The study therefore sought to establish if there is a relationship between firm ownership type i.e. local ownership or foreign ownership type and adoption of the technology. The target population was plantation tea estates segment totaling 42 firms. A descriptive explanatory survey design was used where both quantitative and qualitative data was collected by employing census technique due to small nature of the target population. Data analysis was done using descriptive and inferential statistics. A comparison of level of adoption in local and foreign owned firms indicated a relationship between technology adoption level and firm ownership type with F value of 4.277, significant at p<0.05 with foreign owned firms having a higher level of adoption than local firms. Non parametric test using chi square also indicated existence of relationship between adoption of mechanical tea harvesting technology and firm ownership type at p<0.05%.The research recommends that local firms should pursue more adoption of technology like the foreign owned firms so as to avoid being competed out of business.


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