THE IMPACT OF SECONDARY VALUE CHAIN ACTIVITIES ON THE GROWTH OF SELECTED CHAIN STORES IN FRANCISTOWN, BOTSWANA

Abstract

Effective and efficient implementation of value chain activities is critical to the performance of a
business organisation. The purpose of this study was to explicate the impact of secondary value
chain activities on the growth of selected chain stores in a developing country. To achieve the
purpose of this study, Michael Porter’s Value Chain Model was applied and empirically tested
on a selected sample of the study population. This study adopted the positivist research
philosophy hence a survey research design whence data was collected using a quantitative
research methodology through a structured questionnaire. A sample of 130 participants was
selected from a population of 200 which was derived from eight retail shops. Descriptive and
inferential statistics were employed to analyse data using the Statistical Package for Social
Sciences (SPSS). The findings of this study revealed that the secondary value chain activities
(firm infrastructure, human resources management, technology development, and procurement)
were not effectively contributing to the growth of the retail shops that were covered in this study
although these activities were responsible for much of the variance in the growth of these
enterprises. The study applies Michael Porter’s Value Chain Model concept to determine the
impact of the secondary value chain activities on the performance, hence growth, of selected
retail shops in an identified developing country. In so doing, the study provides the management
of these enterprises with strategies to innovate and enhance business performance and growth
using the value chain model.
Key words: Secondary value chain activities, firm infrastructure, human resources management,
technology development, procurement, chain stores, retail enterprise, innovation, firm
performance, business growth.