Strategic Resource Allocation and Performance of Agribusiness Small and Medium Enterprises in Wajir County, Kenya

Abstract: The performance of agribusiness small and medium enterprises (SMEs) is increasingly recognized as a critical driver of rural development, food security, and economic growth in Kenya. However, many SMEs in Wajir County face challenges such as limited access to finance, inadequate technical expertise, and inefficient deployment of available resources. This study investigated the influence of strategic resource allocation on the performance of agribusiness SMEs in Wajir County, Kenya, a semi-arid region characterized by climate vulnerability, infrastructural deficits, and limited financial inclusion. The general objective was to examine the influence of strategic resource allocation on SME performance, guided by specific objective: projects prioritization on SME performance. The study was anchored on four theoretical frameworks: the Analytic Network Process Theory, A mixed-methods research design was adopted, targeting 1,192 registered agribusiness SMEs, with a sample of 125 selected using stratified random sampling. The study achieved a response rate of 83.2%, with 104 completed questionnaires validated for analysis. Descriptive statistics revealed composite means of 3.22 for projects prioritization, 3.41 for resources alignment, 3.50 for capacity utilization, 3.35 for capital investment prioritization, and 3.36 for SME performance. Correlation analysis revealed strong positive relationships between all independent variables and SME performance, with capital investment prioritization demonstrating the strongest correlation. Multiple regression analysis showed that the predictor’ projects prioritization, explained 63.0% of the variance in SME performance (R² = 0.630, adjusted R² = 0.615). The regression model was significant (F = 42.067), The final regression equation was: Performance = 1.876 + 0.187 (Projects Prioritization). The study concludes that strategic resource allocation significantly influences the performance of agribusiness SMEs in Wajir County. For practitioners, the findings provide actionable insights for SME owner-managers to prioritize capital investments in productive assets, maintain optimal debt-to-equity balances, preserve adequate liquidity reserves, and implement structured project prioritization and resource alignment frameworks. For policymakers, the study offers evidence-based recommendations for designing accessible credit facilities, capacity-building programs, and shared infrastructure investments that enable SMEs to overcome resource constraints in Kenya's challenging arid and semi-arid lands. Keywords: agribusiness small, medium enterprises (SMEs), food security, economic growth. Title: STRATEGIC RESOURCE ALLOCATION AND PERFORMANCE OF AGRIBUSINESS SMALL AND MEDIUM ENTERPRISES IN WAJIR COUNTY, KENYA Author: Jibril Omar Musa, Dr. Susan Naikuru International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 13, Issue 2, April 2026 - June 2026 Page No: 96-109 Paper Publications Website: www.paperpublications.org Published Date: 13-May-2026 DOI: https://doi.org/10.5281/zenodo.20152279 Paper Download Link (Source) https://www.paperpublications.org/upload/book/STRATEGIC%20RESOURCE%20ALLOCATION-13052026-1.pdf