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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Relationship Between Intellectual Capital, Research and Development and Organizational Performance of Tea Processing Firms in Kenya

George Were Momanyi, Grace Armurle, Yobes Nyaboga

http://dx.doi.org/10.6007/IJARBSS/v10-i11/8101

Open access

A firm’s investment in intellectual capital strategy is considered a crucial factor for tea processing firms’ capability to innovate, or its ability to utilize its knowledge resources On the one hand most organizations are recognized for their main ability as intangible possession and for accessing competitive advantage. On the other hand, the importance and the influence of employees’ knowledge and organizational knowledge on the performance and competitiveness of organizations have become very necessary and it leads to acceleration of learning patterns within the organization. According to value of the subject, the study intend to examine the influence of capital strategy on organizational performance of Tea firms in Kericho and Kisii highland in (Kenya)
The study was anchored upon, Resource Based View theory .The framework of the study was tea processing firms in the regions 5and 6. The study relied on primary data and questionnaires were. The descriptive survey design was adopted with a response rate of 79.4%, and adopted a stratified sampling technique. The sample size of the study was 403 respondents. Data was analyzed using descriptive and inferential statistical techniques. T-test statistic was computed for intellectual capital and the results indicated that the strategy was statistically significant in enhancing organizational performance. The study results showed that intellectual capital had a positive influence on performance of KTDA managed processing firms in Region Kericho and Kisii highlands in Kenya. The implication of the study findings is that, tea firms’ managers should develop their human capital through training, increase their networking and partnership, and increase their investment in modern technology in order to enhance tea processing firms’ performance in Kenya.