A Descriptive Analysis of the Influence of Entrepreneurial Orientation Dimensions On the Performance of SMEs in Kenya (Published)
Small and medium-sized enterprises (SMEs) play an important role in the world economy. They contribute substantially to income output and employment. Indeed, they dominate the world business. In spite of this, studies have failed to identify and assess the corporate entrepreneurship dimensions that lead to good performance, especially in Kenya. As such, based on a study of SMEs in Kenya, this paper examines the relationships that obtain between Entrepreneurial Orientation (EO) and firm performance among SMEs. Specifically, the study sought to find out the effect of entrepreneurial innovativeness, risk-taking and proactiveness on firm performance. The study was guided by the resource based view (RBV), contingency theory, theories of entrepreneurship and the marketing theory. It adopted explanatory research design using a census sample with the target population being all the top 536 medium sized firms between 2006 and 2013. Data was collected using a questionnaire and analyzed using descriptive statistics, Pearson’s bivariate correlation, multiple regression and moderated regression analysis. Results revealed that entrepreneurial innovativeness, risk taking and proactiveness have a direct positive relationship with performance of SMEs. From the findings, the study recommended the need to intensify initiatives that encourage a better understanding of EO dimensions in boosting firms’ competitive positions and superior performance; firms should be more entrepreneurial in order to attain superior performance and survive the intensively competitive market environment. They should continuously innovate, especially through new product development, being first to enter the market with new products and in the use of creative new solutions that lead them to be recognized by competitors as leaders in innovation. SME owners/managers also need to enhance their risk-taking behaviour by encouraging staff to take risks with new ideas, make effective changes to their products and be willing to accept at least moderate levels of risk, engage in risky investments and have the courage to seize new opportunities, even if this may involve great financial risks
Keywords: Entrepreneurial Orientation Dimensions, Influence, Kenya, Performance, SMEs
The Influence of Entrepreneurial Innovativeness on Firm Performance among Small and Medium-Sized Enterprises in Kenya (Published)
Small and medium-sized enterprises (SMEs) play an important role in the world economy. They contribute substantially to income, output and employment. They dominate the world business stage. Empirical studies have identified the effects of Market Orientation (MO) and entrepreneurial orientation (EO) on firm performance; also on the moderating effect of MO on single EO constructs, yet studies have failed to identify the influence of Entrepreneurial Innovativeness on the relationship between corporate entrepreneurship dimensions and firm performance, especially in Kenya. Therefore, based on a study conducted to determine the moderating effect of MO on this relationship among mid-sized enterprises in Kenya this paper examines the effect of entrepreneurial innovativeness on firm performance and the moderating effect of MO in the relationship between entrepreneurial innovativeness and firm performance. The study was guided by the Resource Based View (RBV), Contingency Theory, theories of entrepreneurship and the marketing concept. It adopted explanatory research design using a survey of all the top 600 med-sized firms in Kenya between 2006 and 2013. Actual participating firms were 536 with responses obtained from 394 firms. Data was collected using a questionnaire and analyzed using descriptive statistics, Pearson’s bivariate correlation, multiple regression, and moderated regression analysis. Results revealed that entrepreneurial innovativeness has a direct positive relationship with performance of mid-sized firms. In addition, market orientation had no significant moderating effect on the relationship between entrepreneurial innovativeness and firm performance. From these results, the study recommends that firms should intensify initiatives to encourage better understanding of EO and MO in boosting firms’ competitive positions and superior performance.
Keywords: Entrepreneurial Innovativeness, Firm Performance, Kenya, Medium-Sized Enterprises, Small
The Influence of Financial Support Services on the Financial Performance of Women-Owned Enterprises in Eldoret, Kenya (Published)
Micro-credit services target low income clients who lack access to banking and related services. The study sought to establish the influence of micro-credit services on financial performance of women-owned enterprises in Eldoret. The financial performance measures were the net profit, current, inventory and times interest earned ratio. Based on the research, this paper discusses the influence of financial support services on the financial performance of women-owned enterprises which are funded through micro-credit. The study targeted a population of 1721 which constituted of women who owned enterprises and were registered with the county government of Uasin Gishu County. Study samples were drawn through purposive random sampling. A sample size of 313 was obtained using the Krejcie and Morgan formula. Questionnaires were used to collect data. Descriptive and inferential statistics were used to present and analyse the data obtained. Data was then presented in form of tables, and explanations provided. There results showed that there was no significant influence of financial support services on financial performance of women-owned enterprise (p=0.00). From the study, it was observed that the financial performance of the women-owned enterprises in Eldoret improved due to the increase in the net profit, current, inventory turnover and times interest earned ratio. The study concluded that multiple loan products and favourable loan terms helps boost the financial performance of women owned enterprise. The study recommended that microfinance institutions should restructure the collateral and interest requirements by the women entrepreneurs by using credit scoring and business history as alternatives to asset-based security. This paper underscores the need to carry out more research on factors affecting women-owned enterprise in other areas of similar socio-economic patterns to ascertain whether or not financial support services have had a positive impact on the financial performance of women-owned enterprises. Moreover, a study should be conducted on the influence of micro-finance lending on financial performance of women-owned enterprises in Eldoret town.
Keywords: Eldoret, Financial Performance, Financial Support Services, Influence, Kenya, Women-Owned Enterprises
The Influence of Innovativeness on the Performance of Small and Medium Enterprises in Eldoret Town, Kenya (Published)
The study investigated the influence of entrepreneurial intensity on performance of small and medium enterprises in Eldoret town, Kenya. Based on the study this paper examines how innovativeness influences the performance of SMEs in Eldoret town. The study adopted an ex-post facto research design. It targeted all the SMEs in Eldoret town. Systematic sampling technique was adopted to select a sample of 100 SME owners/managers to be involved in the study. The collected data was analysed using both descriptive and inferential statistics. Descriptive statistics was presented in form of percentages, frequencies, pie charts and graphs. Pearson correlation was employed to test the hypotheses of the study. The findings showed that innovativeness as a dimension of entrepreneurial intensity had strong positive correlation with the performance of SMEs in Eldoret town. Therefore, it was recommended that the government should play a role in offering short courses to induct the business owners and expose them to advanced techniques in innovation.
Keywords: Eldoret Town, Innovativeness, Kenya, Medium Enterprises, Performance, Small
Effect of Knowledge Management on Firm Competitiveness: Testing the Mediating Role of Innovation in the Small and Medium Enterprises in Kenya (Published)
Knowledge and innovativeness are have been recognized as the main sources of competitive advantages in the economy. Small and medium-sized firms need to increase attention on knowledge management and innovativeness so as to be competitive. The study examined knowledge management, innovativeness and firm competitiveness. The study is conducted on the results based on 252 small and medium manufacturing enterprise managers in Nairobi, Kenya. The data obtained from the questionnaires were analyzed using the SPSS statistical packaged software. The study results showed that knowledge management processes influence innovativeness positively, innovativeness enhances firm competitiveness while innovativeness is a mediator between knowledge management and firm competitiveness. The study demonstrated that knowledge management and innovation should be integrated to enhance firm competitiveness. The viewpoint proposed is that knowledge management is an important element for small and medium enterprises in today’s dynamic and competitive environment.
Keywords: Firm Competitiveness, Innovativeness, Kenya, Knowledge Management, SMEs