BUSINESS STRATEGIES AND NON-FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN THE REAL ESTATE SECTOR NAIROBI COUNTY, KENYA
Abstract
The study's primary purpose was to determine how successful small and medium-sized enterprises in Nairobi County, Kenya, performed in the real estate industry. The study was conducted with the following objectives in mind: evaluating the impact of focus strategy on the non-financial performance of SMEs in Nairobi County's real estate sector, understanding the impact of innovation strategy on the non-financial performance of SMEs in Nairobi County's real estate sector, and assessing the impact of innovation strategy on the non-financial performance. The information for this study was gathered through structured questionnaires and a descriptive research approach. The survey targeted all 87 SMEs in Nairobi County's real estate sector. Business managers from real estate firms were among those who took part in the survey. 74.7 percent of the 87 persons who were asked to participate said yes. As indicated by Karl Pearson, the data was examined using multiple regression analysis and correlation analysis. The study found a negative association between focus strategy and non-financial success but a favorable relationship between differentiation, innovation, and cost leadership. According to the survey, small and medium-sized enterprises should invest more in research and development. This will assist them in coming up with fresh ideas, giving them an advantage over their competitors. SMEs must ensure that their products are constantly distinctive enough to suit market demands. This will allow them to gain a competitive advantage that will last. According to the report, SMEs employ a cost leadership approach, investing heavily in mass manufacturing and distribution while diligently reducing costs. Small and medium-sized real estate companies must adopt new technologies to reduce project costs and improve non- financial performance. Finally, more research in the private and governmental sectors and other countries is needed to compare and contrast the findings of this study with those of other studies. This research focused solely on nonmonetary performance. Financial performance might be the focus of other investigations. Only business tactics were examined in this study. Other strategic aspects should be examined in future studies.
Key Words: Focus Strategy, Innovation Strategy, Differentiation Strategy’, Cost Leadership Strategy
CITATION: Duncan, F. M., & Ragui, M. (2022). Business strategies and non-financial performance of small and medium enterprises in the real estate sector Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 9 (4), 686 – 705.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2441
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