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Assessment of Organizational Capabilities Affecting Performance of SME’s In Nairobi County

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dc.contributor.author Kimani, Kevin Konye
dc.date.accessioned 2018-01-05T09:43:09Z
dc.date.available 2018-01-05T09:43:09Z
dc.date.issued 2017
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3480
dc.description A Research Project Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract Small and Medium Sized Enterprises (SME’s) form an important economic pillar in Kenya that has been central to economic growth of the country. The Kenya private Sector Alliance (KEPSA) recognized SME sector as the leading contributor to both GDP growth and creation of employment opportunities. However, underneath the impressive metrics attributed the general economic impact in the country, SME’s face survival pressures resulting from business factors like the ferocious marketing competition or even the macro-economic factors. Further, internal organizational factors form critical components that determine the success or failure of an SME business. This study sought to evaluate the influence of organizational capabilities on the success of SME businesses. The study sought to evaluate the influence of organizational capability factors which include; leadership style, financial resources and technology on their impact in the performance of an SME business. The study adopted a descriptive research design, as the foundational procedure in conducting a field survey utilizing quantitative techniques to gather the required data. The study was limited to Nairobi County, where the unit of analysis was SME’s operating within Nairobi and the unit of observation was the SME owners and managers. The study settled on a sample size of 98 respondents, who were all active frontline people in the SME sector. The study settled on a structured questionnaire, which contained close ended questionnaires. Section A of the questionnaire contained the demographic details of the respondents. The subsequent sections of the questionnaire were split into separate sections organized in order of the research variables. A 5-point interval scale was used to measure the respondent’s level of satisfaction, for all the questions. The researcher took the initiative to distribute the questionnaires in person, and made follow-up, via phone calls and text messages. Eventually 64 respondents were able to fill the questionnaires in time for data analysis, which represents a response rate of 65.3%. The study found that SME leadership and the owner commitment to engage the employees and seek their input towards tackling of critical organization problems had a significant impact in the success of the SME, registering a mean of 4.45. The study established that the most crucial component of business finances was the amount of financial resources currently available for the business with a mean of 4.73. The study found that, ICT enhanced internal organizational interactivity where enhanced level of communication between employees was enabled enhanced the performance of the business with an average mean of 4.25. The study concludes that, leadership style has a strong correlation with the success of the SME business, thus any contributing factor that could potentially limit the effective dispensation of leadership duties, is bound to negatively affect the performance of the business. The study concludes that, the prevailing financial health of an organization is an indicator of the SME business growth rate. The study concludes that technology improves the organization coordination with the external entities such as customers and suppliers which contributes to enhanced service delivery. The study recommends for a cooperative approach to leadership, where the SME leadership, encourages the employees to work in unity and align all their efforts towards the realization of the organizational objectives. The study recommends that, SME businesses need to adopt strict revenue management and book keeping policies to ensure a strong record management for the financial resources. The study recommends that, SME’s should treat the deployment of ICT systems as critical strategic factor for organizational administration. This is because; ICT platforms wield impact on efficiency in service delivery and contribute to the reduction in operational costs by leaning transactional operations. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Organizational Capabilities en_US
dc.subject Performance of SME’s en_US
dc.subject Nairobi County en_US
dc.title Assessment of Organizational Capabilities Affecting Performance of SME’s In Nairobi County en_US
dc.type Thesis en_US


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