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Contribution of Support Activities to Longevity of Small Firms – Value Chain Analysis of Small Firms in Nairobi County

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dc.contributor.author Gatonye, Edwin Ngaruiya
dc.date.accessioned 2015-07-29T10:56:23Z
dc.date.available 2015-07-29T10:56:23Z
dc.date.issued 2015
dc.identifier.uri http://erepo.usiu.ac.ke/11732/600
dc.description A Project Report by Edwin Ngaruiya Gatonye, 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 The purpose of the study was to establish the contribution of support activities to the longevity of small firms. The study was guided by the following research questions: What is the contribution of technology development to longevity of small firms? What is the contribution of procurement to longevity of small firms? What is the contribution of firm infrastructure to longevity of small firms? What is the contribution of human resource management to longevity of small firms? This study employed the use of the survey method to collect data from the respondents since it allows the collection of a large amount of data from a sizeable population in a highly economic way. The population of the study was 2285 small businesses owned by the youth, women and persons with disabilities registered with the Kenya Public Procurement Oversight Authority in sectors of ICT, construction, agribusiness and food supplies and hospitality. This study made use of stratified sampling in conjunction with simple random sampling to select the respondents in each of the chosen categories. The study targeted thirty-six small firms which are registered and licensed to operate within Nairobi County. This sample size was selected due to availability of the small and medium enterprises management, time and cost of data collection. The study revealed that indeed there was a positive significant relationship between technology and development and longevity of small firms in Kenya. This was confirmed by the Beta and T-values drawn from the analysis. This finding therefore confirms that indeed technology and development leads to longevity of small firms in Kenya. Additionally the study shows that indeed there was a positive significant relationship between procurement and longevity of small firms in Kenya. This was confirmed by the Beta and T-values drawn from the analysis. This finding therefore confirms that indeed procurement leads to longevity of small firms in Kenya. Thirdly the study revealed that indeed there was a positive significant relationship between firm infrastructure and longevity of small firms in Kenya. This was because the Beta value was .615 and the T value was 4291. This was confirmed by the Beta and Tvalues drawn from the analysis. This finding therefore confirms that indeed firm infrastructure leads to longevity of small firms in Kenya. Finally the study revealed that indeed there was a positive significant relationship between human resource and longevity of small firms in Kenya. This was confirmed by the Beta and T-values drawn from the analysis. This is because the Beta value was .452 and the T value was 2.695. This finding therefore confirms that indeed firm human resource leads to longevity of small firms in Kenya. The study concluded the MSE sector being a growing sector in Kenya as well as the whole world brings about the need for careful examinations of various ways of making it more competitive and therefore profitable. The researcher believes that more innovations in technology and development in this line will enhance growth in this sector. The study also concludes that indeed there was a positive significant relationship between procurement and longevity of small firms in Kenya. The study also concludes that the procurement system in small firms is very good. Finally the study concludes that most small firms in Kenya maintain good relationships with major suppliers. It was also concluded that the organization structure as well as management expertise were key in longevity of small firms. This finding therefore confirms that indeed firm infrastructure leads to longevity of small firms in Kenya The study recommends that the government should implement policies that enhance procurement efficiencies which will help longevity of small firms. The employees in the small firms should be trained further to enhance their knowledge on procurement efficiency so that they are competent enough to handle their tasks. The study also recommends that small companies should promote institutional Isomorphism, this could be done based on the enlightened understanding of the current institutional structures, and they must develop tangible programs based on alternative norms and values that will provide the necessary diversity within the industry. Additionally these firms need to recognize that the forces at play here do not necessarily represent an insidious coincidence. Hence, solutions must be institutional infrastructure in nature and cannot be brought about by individuals acting alone. The study acknowledges that indeed small firms are faced with a myriad of challenges as they seek market access. The study therefore recommends that these firms need to develop resource management strategies that will enhance their performance. en_US
dc.publisher United States International University - Africa en_US
dc.subject Support Activities en_US
dc.subject Small Firms en_US
dc.subject Value Chain Analysis en_US
dc.title Contribution of Support Activities to Longevity of Small Firms – Value Chain Analysis of Small Firms in Nairobi County en_US
dc.type Thesis en_US


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