EFFECT OF HUMAN RESOURCE MANAGEMENT COMPETENCE PRACTICES ON SUSTAINABILITY OF SMALL AND MEDIUM ENTERPRISES IN KENYA
Abstract
SMEs sustainability is of increasing interest worldwide as many enterprises perform dismally and are of high mortality rates. It is therefore necessary to conduct research to enhance SMEs survival rates so as to enable the sector to optimally realize the numerous benefits associated with entrepreneurship practice. The purpose of this study was to determine the effect of entrepreneurial competence practices and their impact on sustainability of SMEs in Kenya. The study employed descriptive survey design to realize the intended objectives. The target population under study was the 1015 registered SMEs in Embu County and its environs. The researcher applied stratified random sampling technique since the population was heterogeneous. The study employed questionnaires and document analysis guides to collect required data from a sample of 102 SMEs. The collected data was coded, quantified and analyzed qualitatively and quantitatively. Quantitative data was analyzed by the use of statistical package for social scientists (SPSS) whilst qualitative data was analyzed by content analysis. A substantial number of respondents had not applied entrepreneurial competence practices in their business operations. The study also established that majority of respondents measured business sustainability in terms by trends in profit, increase number of customers as well as age of business. The study concludes that the key entrepreneurial competence practices were found to have a substantial impact on sustainability of SMEs in Embu town and its environs. However, constantly monitoring was found necessary to make the competencies learnt be translated into more practical work as most of the trained entrepreneurs were not fully utilizing the acquired competencies in their ventures to attain sustainable levels.
Key words: Entrepreneur, Entrepreneurial Competence Practices, Sustainability
CITATION: Njiru,F. M. (2023). Effect of human resource management competence practices on sustainability of small and medium enterprises in Kenya. The Strategic Journal of Business & Change Management, 10 (3), 367 – 385.
Full Text:
PDFReferences
Aderemi A.A. (2007). Entrepreneurship Programs, Operational Efficiency and Growth of Small Business. Journal of Enterprising Communities: People and Places in the global economy, Vol.1(3) 222-239
Ahmad N. H. (2007). “A Cross-Cultural Study of Entrepreneurial Competencies and Entrepreneurial Success in SMEs in Australia and Malysia”.Unpublished PhD Thesis, University of Aldelaide, South Australia.
Ajzen I. (1991). The Theory of Planned Behaviour: Organizational Behaviour and Human Decision Process Vol.50.
Analoui, F. and Karami A.(2003). Strategic Marketing in SMEs, London: Thomson Learning
Baum, J.R., Locke,E.A., and Smith K.G.(2001). A Multidimensional Model of Venture growth. Academy of Management Journal 44(2): 292-303.
Bartlett, C.A. and Ghoshal, S.( 1997). The Myth of the Generic Manager New Personal Competencies for New Management Roles. California Management Review 40(1) 92-116
Benjamin, J.I. and Rebecca, O.E. (2009).Entrepreneurship Competencies: the Missing Link to Successful Entrepreneurship in Nigeria.The journal of International Business Research, 2(2)
Borga, F., Citterio, A., Noci, G., and Pizzurno (2009). Sustainable Report in Small Enterprises. Case Studies in Italian Furniture Companies. Business Strategy and the Environment, 18(3):162-176
Brophy, M. and Kiely, T. (2002). “Competencies: A New Sector”, Journal of European Industrial Training, 26(2/3/4): 165-176
Brinckmann, J., Grichnik, D., and Kapsa, D.(2010). Should Entrepreneurs Plan or Just Storm the Castle?A Meta-analysis on Contextual Factors Impacting Business Planning-Performance Relationship in Small Firms.Journal of Business Venturing, 25: 24-40
Brownell, J. (2008). “Leading on Land and Sea: Competencies and Context”. International Journal of Hospitality Management, 27(2): 137-150
Business times (1997).Training Cuts the Rate of Failure[online]-http://wwwbtimes.co.za
Castrogiovanni, G.J.(1996). Pre-Start-up Planning and the Survival of New Small Businesses. Theoretical Linkages, Journal of Management
Chodokufa, K.(2009). An Analysis of the Business Relationship between SMEs and Insurance Companies in the Nelson Mandela Metropolitan Area. A Dissertation Submitted in Fulfilment of the Requirements for the Degree of Masters of Commerce Programme in Business Management and Commerce at the University of Fort Hare.
Cooper, D.R. and Schindler, P.S. (2003).Business Research Methods. 8th edition, Tata McGraw
Cooper, D.R. and Schindler, P.S. (2006). Research Design: Qualitative and Quantitative Approaches. Thousand Oaks, CA,Sage
Creswell, J. W. (2009). Research Design: Qualitative, quantitative and Mixed Methods Approaches (3rdEd.). Los Angeles, London, New Delhi, Singapore: Sage Publications.
Dincer, O. Tatoglu, E. and Glaister, K.W. (2006). The Strategic Planning Process: Evidence from Turkish Firms. Management Research News, 29(4): 206-219
Eriksen, B. H. (2008). Strategic Planning and Firms Performance. The Influence of Organizational Context. Springer Science Business Media
European Federation of Accountants (2004). Avoiding Business Failure: A Guide for SMEs, FEE Guide Retrieved from http://www.fee.be
Fawcett, G.E. and Myers, M.B.(2001). ‘Product and Employee Development in Advanced Manufacturing: Implementation and Impact. International Journal of Production Research, 39(1): 65-79
Gottschalk,P. and Solli-Saether,A.(2005). Critical Success Factors From IT Outsourcing Theories: An Empirical Study, Industrial Management and data Systems.
Griffin, R.W.(2012). “Managing New Venture Formation and Entrepreneurship” Management Principles and practices: South-western, Cengage Learning
Gruber,M. (2007). ‘ Uncovering the Value of Planning in New Venture Creation: A Process and Contingency Perspective’ Journal of Business Venturing.
Hafeez , K. Malak, N., and Zhang, Y. (2007). Outsourcing Non-Core Assets and Competencies of a Firm Using Analytical Hierarchy Process.
Hanushek, E and Woessmann , L. (2008). The Role of Cognitive Skills in Economic Development. Journal of Economic Literature.
Hertzberg, F.,Mansner, B. and Snyderman,B. (1959). The Motivation to Work. New York, N.Y.Wiley and Sons
Herrington, M. and Wood, E. (2003). Global Entrepreneurship Monitor, South African Report.
Hoffman, T. (1999).The Meaning of Competence.Journal of European Industrial Training, 23:6
Honing, B. and KarLsson (2004).‘ Institutional Forces and the Written Business plan’ Journal of Management
Huang, T.C. (2000). Are the Human Resource Practices of Effective Firms Distinctively Different From Those Of Poorly Performed Ones? The Internationl Journal of Human Resource Management, 11(2): 436-451.
Hubbard,G, (2009).Measuring Organisational Performance: Beyond the stripple Bottom Line. Business Strategy and the Environment, 18: 177-191
Hussam, A.A. and Raef, T.H. (2007). Strategic Planning-Firm Performance Linkage: Empirical Investigation From an Emergent Marketing Pespective, Advances in Competitiveness Research, 15(1&2): 15-20
Hynes,B. and Richardson,I. (2007). “Entrepreneurship Education. A Mechanism for Engaging and Exchanging With the Small Business Sector” Education Training.
ILO Report (1972),” Employment, Incomes and Equity: A Strategy of Increasing Productive Employment in Kenya”. Geneva: International Labour Organisation.
Julien, P. (1998). The State of the Art in Small Business and Entrepreneurship. Aldershot: Ashgate Publishing.
Kauffmann, C. (2006). Financing SMEs in Africa. OECD Development Centre, Policy Insight. OECD, Paris
King-Kauanui, S., Ngoc, S.D. and Ashley-Cotler, C. (2006). Impact of Human Resource Management: SMEs Performance in Vietnam. Journal of Developmental Entrepreneurship, 11(1):79-95
Kothari, C.R. (2004). Research Methodology, Methods and Techniques. New Age International (P) Limited, Publishers New Delhi
Krueger, N. (1993)(a) The Impact of Prior Entrepreneurial Exposure on Perceptions of New Venture Feasibility and Desirability. Entrepreneurship Theory and Practice, 18(1): 5-21
Krueger,N. and Brazeal, D.V. (1994). Entrepreneurship Potential and Potential Entrepreneurs. Entrepreneurship Theory and Practice
Lambin,J.J. (2004). Market-driven Management, Strategic and Operation Marketing, London, Palgrave Macmillan
Lau, M.S.R.; Zhao,X. and Xiao, M.(2004). Assessing Quality Management in China with MBNQA Criteria.International Journal of Quality and Reliability Management, 21(7): 699-713
Liao, J. and Gartner, W.B. (2006).’ The Effects of Pre-Venture Plan Timing and Perceived Environmental Uncertainty on the persistence of Emerging Firms’, Small Business Economics
Locke, E. and Latham, G. (1990). A Theory of Goal Setting and Task Performance. Prentice-Hall, Englewood Cliffs, NJ.
Longenecker, J. G.; Petty, C. W.; Moore, J.W. and Palich, L.E. (2006). Small Business Management, an Entrepreneurial Emphasis. London: Thomson South Western
Mandal, P. Venta,H.E. and EL-Houb, A.(2008). Business Practices and Performance in US Manufacturing Companies: An Empirical Investigation. International Journal of Business Excellence, 1(1/2): 141-159
Mau, T.W.; Lau, T. and Chan, K.F. (2002).“ The competitiveness of SMEs-A Conceptualization With Focus on Entrepreneurial Competencies. Journal of Business Venturing, 17(2): 123-142
Mau, T.W.Y. and Lau, T. (2005). The Context of Entrepreneurship in Hong Kong: An Investigation through the patterns of Entrepreneurial Competencies in Contrasting Industrial Environments. Journal of Small Business and Enterprise Development, 12(4): 464-481
Martins,J.H. Loubser, M. and Van Wyk, H. (1996). Marketing Research: A South African Approach. First Edition, Pretoria: UNISA Press
Mbogo, M. (2011). Influence of Managerial Accounting Skills on SMEs on the Success and Growth of SMEs in Kenya. Journal of Language, Technology and Entrepreneurship in Africa, 3(1): 15
McMahon, E. and Holms, V. (2009). Understanding Small Business: Practices Theory and Research (6th Edition). Aldelaide: Scarmann Publishing
Morris, H.M., Schindehutte, M. and LaForge, R.W. (2005).Entrepreneurial Marketing: Aconstruct for Integrating Emerging Entrepreneurship and Marketing Perspectives-Journal of Marketing theory and Practice, 10(4): 1-9
Mugenda, O.M. and Mugenda, A.G.(2003). Research Methods: Quantitative and Qualitative Approaches. Nairobi: ACTS Press
Mugion, F. (2013).EMPRETEC Inspiring Entrepreneurship. International Trade Forum, (1): 15-17
Ngugi, J. and Bwisa, H. (2013). Factors Influencing Growth of Group Owned SMEs: A Case of One Village One Product Enterprises.International Journal of Education and Research vol.1 No.8
Nieman,G.; Hough,J. and Nieuwenhuizen, C. (2003). Entrepreneurship: A South African Perspective.1st Edition. Pretoria: van Schaik
Penrose, E. (1959). The Theory of the Growth of the Firm, Oxford: Oxford University Press
Pery , S.C.(2001).’ The Relationship Between Written Business Plans and the Failure of Small Business in the US’, Journal of Small Business Management, 39(3): 201-208
Prajogo, I.D. and Sohal, S.A. (2003).The Relationship Between TQM Practices, Quality Performance and Innovation Performance. The International Journal of Quality and Reliability Management, 20(8/9): 901-918
Pushpakumari, M.D.andWijewickrama, A.K. (2008).’Planning and Performance of SME Organizations: Evidence from Japan’, Paper Presented at International Conference on Business and Management Education, Bangok, Thailand.
Rochling, M.V., Boswell, W.R., Caligiuri, P. and Feldman, D (2005). The Future of Human Resource Management: Research Needs and Directions. Human Resource Management Journal, 44(2)207-216
ROK (1986).Sessional Paper No.2 on Economic Management for Renewed Growth. Government Printers, Nairobi
ROK (1992). Sessional Paper No.2 on Small Enterprise and Jua-Kali Development in Kenya, Nairobi: Government Printers
ROK (1999). A Strategy of Small Enterprise Development in Kenya towards the Year 2000, Nairobi, Kenya: Government Printers
ROK (2004). The Economic Recovery Strategy for Wealth and Employment Creation, 2003-2007, Government Printers, Nairobi, Kenya.
ROK(2005). Sessional Paper No.2 on Development of Micro and Small Enterprises for Wealth and Employment Creation for Poverty Reduction, Kenya, Nairobi: Government Printers
ROK(2007). Economic Survey. Nairobi, Kenya: Government Printers
ROK(2007). Kenya Vision 2030: A Globally Competitive and Prosperous Kenya. Government Printers, Nairobi, Kenya.
ROK(2007). Ministry of Economic Planning Report on SMEs.
ROK,(2008). Economic Survey. Nairobi, Kenya: Government Printers
ROK (2009).Economic Survey. Nairobi, Kenya: Government Printers
ROK (2012).Economic Survey. Nairobi, Kenya: Government Printers
ROK,(2013). Economic Survey. Nairobi, Kenya: Government Printers
Robinson,R.B. and Pearse II,J.A. (1984). ‘Research Thrusts in Small Firm Strategic Planning’, Academy of Management Review, 9(1): 128-137
Robson,C. (2002). Real World Research: A Resource for Social Scientists and Practitioners-Researchers, Blackwell Publishing, Oxford
Ropega,J. (2011). The Reasons and Symptoms of Failure in SMEs. International Advances in Economic Research, 17(4):476-483
Sarsedt, J. (2011). “A Concise Guide to Market Research: The Process, Data and Methods Using IBM SPSS Statistics”. White Plains, New York: Longman
Saunders,M. Lewis, P. Thornhill, A. (2003). Research Methods for Business Students. Prentice Hall Pearsons, Education Limited, U.K.
Shalley, V.E. (2004). Factors Hindering Growth in Small Businesses, Retrieved From http://www.sbae.uca.edu
Small Business Research Centre (2008). Growth Challenges for Small and Medium Sized Enterprises. A UK-US Comparative Study, KingstoneHill:Kingstone University
Tapan,K.P. (2002). Entrepreneurial Success and Risk Perception Among Small Scale Entrepreneurs of Eastern India. Indian Institute of Management, Lucknow Journal of Entrepreneurship, 11(2):173-190
UNIDO (2003). A Path out of Poverty: Developing Rural and Women Entrepreneurship(SMEs, Trans.) Vienna, Austria: United Nations Industrial Development Organisation
Van Tonder, L. (2010). Entrepreneurship in South Africa. [online] Available at http://www.lohesi.co.za
Wang, C. Walker,E. and Redmond,J.(2010). ‘Explaining the Lack Strategic Planning in SMEs: The Importance of Owner Motivation’. International Journal of Organizational Behaviour, 12(1): 1-16
Wickham, P.A.(2006). Strategic Entrepreneurship, Harlow: Pearson Education
Willemse, J. (2010). The Forum SA. SME Failure Statistics (on-line). Retrieved from: http://.www.theforumsa.co.za
William, M.K.T (2006). Research Methods Knowledge Base.
World Bank (2013). Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises. Washington, DC: World Bank Group
Yin, R. (2009). Case Study Rsearch: Design and Methods. London: Sage Publications
Zacharakis, A.L. Neck, H.M., Hygrave, W.D. and Cox, L.W. (2002). Global Entrepreneurship Monitor. Wellesley, MA: Babson College
Zimmerer, T.W and Scarborough,N.M. (1998). Entrepreneurship and New Venture Formation. Prentice Hall: New Jersey
DOI: http://dx.doi.org/10.61426/sjbcm.v10i3.2711
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.