Effect of Customer Orientation on Performance of Dairy Farmers’ Ccooperatives in Western Region, Kenya

Abstract

This study examined the effect of customer orientation as a core competence on the performance of Dairy Farmers’ Cooperatives in the Western, Kenya covering Kakamega, Bungoma, Vihiga and Busia counties. The research adopted descriptive and causal research designs. The study targeted lead farmers and CEOs of Dairy Farmers’ Cooperatives. The sample size was 210 comprising of Lead farmers and CEOs from sampled cooperatives. Data was collected using closed-ended questionnaires, supplemented by interviews with County Cooperative Commissioners for qualitative insights. Stratified and simple random sampling techniques were employed. Reliability was assessed using Cronbach’s alpha while validity was assessed through content, construct, and criterion perspectives. Performance was measured by using 5-point Likert scale by soliciting for responses on volume of milk intake, farmers payment rate, milk sales volume and profit margin.  Data was analyzed using descriptive and inferential statistics. The findings revealed that customer orientation significantly influenced Dairy Farmers’ Cooperatives’ performance (B = 0.74; P = 0.000). The study concluded that Dairy Farmers’ Cooperatives should invest in customer-oriented practices, prioritize customer needs, and ensure consistent delivery of quality products and services. The primary value of this research is its demonstration that strengthening customer relationships and enhancing satisfaction are critical strategies for improving productivity and, ultimately, the performance of Dairy Farmers’ cooperatives.