FACTORS INFLUENCING THE ESTABLISHMENT OF SUCESSFUL BUSINESS LINKAGES BETWEEN MICRO AND SMALL ENTERPRISES AND LARGE ENTERPRISES IN KENYA
Abstract
Business Linkages can be defined as channels through which enterprises influence each other’s economic performance. They show the interrelationship among various economic activities through the input-output relationships or the economic value chain. The main purpose of this study was to explore the extent of business linkages between MSEs and large firms in the various major sub sectors in Nakuru town so as to establish the levels and types of linkages between these MSEs and the large firms. The mixed method approach was used where both quantitative and qualitative approaches was adopted. A sample of around 121 MSEs in metal fabrication, chemicals, auto mobile service sector and agro-processing was selected using a multistage sampling technique and divided into strata on the basis of sector involved. Data was collected by use of a questionnaire and analyzed by use of Statistical Package for Social Sciences. Both descriptive and inferential statistics were used in reporting the study findings. Regression analysis was used to express the relationship. The study found that establishment of business linkages between MSEs and large firms was significantly influenced by technology and labour mobility. The study recommended: the formulation of policies to strengthen the coordination of institutions supporting MSE developments networks among MSEs, business linkages attraction measures should give priority to firms operating in sectors where the technological gap with local MSEs is not too high and expensive to adapt and specifically prioritize firms which are more likely to generate substantial linkages and promote the internationalization of the host economy.
Key Words: Technology, Labour Mobility, Business Linkages, MSEs
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i4.386
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