Factors influencing financial performance in marine small-scale fisheries value chain in Kenya

Abstract

Factors influencing financial performance in marine small-scale fisheries are numerous but are scantily documented and tested, more so from the Structure-Conduct-Performance perspective. The present study empirically tested influence of structure in context value of equipment, on actors’ conduct in context of price collusion, choice of products, access to market information and power to determine prices, and how these and other factors influenced performance in terms of profitability. Data was collected through field interviews targeting 403 actors (fishers, middlemen and small-scale processors) at five sites along the Kenyan coast. Binomial, multinomial, ordinary least squares regressions and regressions with instrumental variables were used in data analysis. Findings revealed that structure did not significantly influence actors conduct, while both structure and conduct influenced performance only on a few variables and actors. Instead other non-Structure-Conduct-Performance variables influenced performance across all actor groups. Increasing sales, improved profitability, while increasing variable and fixed costs decreased profitability. Results of the study provide important insights on actor behaviour that are useful for policy and value chain development interventions.