The Impact of Internal Integration on the Competitiveness of Agribusiness Firms in Meru County, Kenya

Abstract

This study examined the relationship between internal integration and the competitiveness of agribusiness firms in Meru County, Kenya. Agribusiness firms contribute to food security, employment and rural development. In Kenya, they operate across input supply, production, processing, distribution and retailing, making their ability to compete important to economic performance. The study was guided by Systems Theory and adopted a descriptive cross-sectional design. The target population comprised 56 registered agribusiness firms across Meru County. The study aimed to conduct a census of the firms, with three intended respondents per firm (director, supply chain officer, and procurement officer), for a planned 168 respondents. A total of 162 usable questionnaires were returned and analysed, representing a response rate of 96.4 per cent. Data were collected using a structured questionnaire and analysed in SPSS Version 28 using descriptive statistics and simple linear regression. Respondents generally agreed that internal integration practices were in place (M = 3.9476, SD = 0.5801). Regression results indicated a positive, statistically significant but weak relationship between internal integration and competitiveness (B = 0.275, ? = 0.165, p = .036); the model explained 2.7 per cent of the variance (R² = .027). The study concludes that cross-functional coordination contributes to competitiveness, although other factors also account for most of the observed variation. It recommends that agribusiness firms should strengthen joint planning, information sharing, ICT integration and coordination of departmental schedules. The County Government of Meru and relevant agencies can support these efforts through targeted training, business-development initiatives, market information systems and digital-capability support.