Relationship between Lean Management Strategy and Performance of Multi-National Tea Firms in Kenya
The economic and social development of Kenya is heavily reliant on agriculture. Tea, as a major cash crop, has contributed significantly to the economy. However, the tea sector faces numerous problems that endanger its viability unless rapid intervention measures are implemented, thereby prompting the introduction of cost reduction in the sector. The challenges of production and marketing have been the most detrimental. On this background, this study sought to examine the relationship between lean management strategy and performance of Multi-national tea firms in Kenya. The study was guided by the Competitive Advantage Model, Resource-Based View Theory, and Transaction Cost Theory, and it adopted a causal research design. The target population of the study were 118 top, middle and low managers in Ekattera, Brown Investment PLC and George Williamson. Census of the all employees in the multinational companies was used in the study. Primary data was collected using structured online questionnaires and interviews using census technique. A pilot of 10 questionnaires was given to employees in Litein tea factory. Instruments’ validity and reliability was checked using Cronbach’s alpha which yielded a value of 0.785 showing that the instrument was reliable and validity was ascertained through consultation with subject expert at the department lead by the supervisor. Correlation analysis and simple linear regression was used to test the relationship between lean management as a cost reduction strategy and firm performance. Analysis of data was done using SPSS version 26, which generated both descriptive and inferential statistics. Data was presented using tables, figures and pie charts. Results showed that lean management strategies accounted for 68.1% of the variance in the firm performance (R² = 0.681). Lean management (p<0.001 and β=0.825) showed statistically significant positive influence on the performance of multinational tea firms. Qualitative findings from interviews were thematic analysed to get inferences to support the quantitative findings. The study found lean management is a key enabler for operational and financial success in the Kenyan tea sector. Ultimately, the study recommends that multinational tea firms adopt and institutionalize lean management practices to optimize resource efficiency, minimize waste, and drive sustainable performance improvements in the competitive global tea market.