STRATEGIC MANAGEMENT ADOPTION AND PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN STAREHE CONSTITUENCY - NAIROBI CITY COUNTY, KENYA
Abstract
This research project study sought to investigate the effect of strategic management adoption on the performance of SMEs in Starehe Constituency. This research project used descriptive survey design on the target population of 1,099 SMEs and sample sizes of 188 business proprietors were engaged. Data collection was done through administration of a questionnaire tool bearing well framed questions in a likert-scale model. The study employed stratified random and simple random sampling. The researcher used regression analysis model to establish the relationships between the dependent and independent variables. The primary data was collected by use of self-administered semi-structured questionnaire. The study used content and face data validation while data reliability was obtained by use of the Cronbach’s Alpha (α) to measure the co-efficient of internal consistency. The research study used descriptive statistics which included mean, median and standard deviation to describe the basic features of the data under study to aid in drawing conclusion. The data was analyzed using SPSS and Microsoft Excel and the study findings presented using tables, charts, graphs and percentages. Regression results also showed a positive and statistically significant relationship between SME performance and customer focus, learning and growth, cost leadership, creativity and innovation were important in determining performance of SMEs in Nairobi City County, Kenya. The study concluded that SMEs in Nairobi City County, Kenya, had adopted strategic approaches in their business activities although at various levels. The results of the strategic management adoption has proven a strong determinant of performance of these SMEs. The study also concluded that there were challenges faced by SMEs in Nairobi City County in their quest to adopt strategic management practices such as limited access to finances and business coaching on entrepreneurship. It was recommended that the management of the SMEs should ensure that within their resource capacity should adopt management strategies which promote and improve their business performance
Key Words: SMEs Performance, Strategic management practices, Customer Focus, Cost Leadership and innovation
CITATION: Yuta, L. K., & Karugu, J. (2019). Strategic management adoption and performance of small and medium-sized enterprises in Starehe Constituency - Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 6 (4), 1561 – 1574.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1488
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