Agribusiness Firms ' Resources and Performance: The Mediation Role of Strategic Management Practices

Abstract

This study investigated the relationship between firms ' resources, strategic management practices and performance of small agribusiness firms. The objective was to demonstrate the role of strategic management practices in facilitating effective use of firms ' resources to achieve their agribusiness performance. Results from a structural equation model using a sample of 229 agribusiness firms from Tanzania indicated that the investigated resources alone do not directly contribute to a firm ' s performance unless there is application of strategic management as a potential mediator. Further investigation based on multi-group analysis showed three groups of firms, which differed in their resourcesperformance relationship. The results imply that managers ought to identify a fit between their resources and strategic actions in order to enhance firms ' performance. The study provides manifold managerial implications for small firms that seek to improve their performance. [EconLit citations: J24, M31, Q13, Q18].