AN ANALYSIS OF COMPETITIVE STRATEGIES AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN KENYA: A CASE OF NAIROBI CENTRAL BUSINESS DISTRICT

2017 ◽  
Vol 2 (2) ◽  
pp. 72
Author(s):  
Omar B. Buul ◽  
Dr. Robert Omundi

Purpose: The purpose of this study was to determine the influence of competitive strategies on the performance of small and medium enterprises in Kenya.Methodology: The study employed a descriptive correlation design using primary data collected using questionnaires. The study targeted 4,560 SMEs in Nairobi CBD. The collected data was coded and entered into SPSS (V.20) to create a data sheet that was used for analysis. Data was analyzed using quantitative techniques. Descriptive statistics were used to describe the characteristics of collected data. Pearson’s Correlation, Analysis of variance (ANOVA) and Multiple Regression Analysis were used to establish the relationships among the study variables.Findings: Cost leadership, differentiation, market focus and strategic alliance were all found to have a positive and significant influence on SME performance.Unique contribution to theory, practice and policy: The study recommended that: SMEs should embrace and invest in cost leadership strategies most especially forming linkages with service providers, suppliers and other supplementary institutions since it will enable them achieve competitive advantage; SMEs ought to focus and invest more on differentiation as it could be used as a major competitive advantage tool against competitors; SMEs should know on what basis to segment their products, services and operations; and that SMEs should embrace strategic alliances to increase their market share.

2019 ◽  
Vol 8 (4) ◽  
Author(s):  
Muhajirin Muhajirin ◽  
Kamaluddin Kamaluddin

Small and medium enterprises are one of the leading drivers in the world economic development. Small and medium enterprises are one of the fields in absorption very significant workforce. At this time is a period of globalization where competition is getting tougher, many companies will go bankrupt or out of business if the company does not prepare the company inside current competition. The goal to be achieved is to increase market orientation and product innovation towards competitive advantage in the Gedong Weaving Small and medium enterprises (UMKM) in the City of Bima. The data used is primary data. Research sample amounting to 90 respondents. The data analysis tool in this study uses multiple linear regression. The results of this study indicate that Market orientation positive and significant effect on competitive advantage in UMKM Weaving Gedogan in Bima City, product orientation has a positive and significant effect on competitive advantage in Gedogan Weaving Small and medium enterprises (UMKM) in Bima City and there are the positive and significant influence of market orientation and product innovation has been reduced Competitive advantage in UMKM Weaving in Bima City. So that it is higher market orientation is carried out, and the higher the level of product innovation, then Increasing competitive advantage in Gedogan Weaving Small and medium enterprises (UMKM)  in Bima City.Keywords: Market Orientation, Product Innovation, Competitive Advantage


2015 ◽  
Vol 52 (1) ◽  
pp. 51-64 ◽  
Author(s):  
Maja Ivanović-Đukić ◽  
Maja Lazić

AbstractThe global economic crisis has taken a number of consequences. In order to overcome them, many of various measures on macroeconomic and microeconomic level should be implemented in the post-crisis period. A large number of developed and developing countries as a key lever in the post-crisis period would recognize the SME sector, so that the greatest number of macroeconomic policies aims at fostering its competitiveness. Previously, a competitive advantage of SMEs was generally founded on focusing on specific markets, competing in fragmented industry or on cost leadership. Nowdays, the ability to innovate is the most important source of their competitiveness. However, since the capacities of SMEs to introduce technological innovations are generally limited, strong macroeconomic support for increasing innovativeness of SMEs is necessary. This paper will explain measures which may increase innovativeness of SMEs and the impact of SMEs innovations on their competitiveness and the competitiveness of the economy in which they operate. A special emphasis will be on the analysis of innovativeness of the SMEs in Serbia.


Author(s):  
Edi Sugiono ◽  
Suryono Efendi

This study aims to analyze the role of organizational learning and innovation in improving the competitive advantage of small and medium enterprises (SMEs) in the Mojokerto area. The study was conducted using primary data obtained from the distribution of questionnaires. In total, there were 100 IKM leaders in Mojokerto who became the respondents in this study. Hypothesis testing is done by using Partial Least Square Structural Equation Modeling (SEM-PLS). The results of the study show that organizational learning and innovation have a positive and significant effect on improving SMEs’ competitive advantage. The results of this study also prove that innovation can mediate the relationship between organizational learning and SMEs’ competitive advantage.


2012 ◽  
Vol 10 (1) ◽  
pp. 363-379 ◽  
Author(s):  
Valentina Della Corte ◽  
Mauro Sciarelli

Contributions on competitive strategy and advantage have been long concentrated on the single firm. In Europe small and medium enterprises still prevail, business districts are widespread and rivals are called to cooperate, in order to face the global context. Inter-firm collaboration seems to be the main path to survive and compete. Literature has more concentrated on the reasons for success of strategic alliances and networks even if many of them fail or do not take off. In the light of relational view and the absorptive capacity approach, the paper tries to verify whether coopetiton, can be, through the relations that generates, source of competitive advantage or rather of disadvantage. Theoretical hints are tested empirically on a sample of firms in Italy operating in tourism industry


2019 ◽  
Vol 3 (VI) ◽  
pp. 193-215
Author(s):  
Rukia Ali Mohammed ◽  
James Rugami

The competitive business environment has forced organizations to engage in complex business decisions which require competitive strategic management. According to Haines (2016), Competitive Strategic management practices involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of its owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Competitive Strategic management practice is an important practice as it gives a strong influence towards firms’ success. Due to the ever changing business environment, small and medium enterprises struggle to operate, manage and improve their businesses efficiently in order to deliver quality products and services consistently and on time. This is because in most enterprises the application of business strategies requires a host of expensive and time consuming changes both in the organizational culture and structure hence many owner / managers have had to overlook for some necessary and critical business strategies. The study will be guided by four objectives; to establish the effect of Cost leadership strategy on the performance of small and medium enterprises in Mombasa central business district, to determine the effect of Differentiation strategy on the performance of small and medium enterprises in Mombasa central business district, to establish the effect of focus strategy on the performance of small and medium enterprises in Mombasa central business district and to determine the effect of product innovation on the performance of small and medium enterprises in Mombasa central business district. The study will be anchored on three theories namely; Resource-based theory, game theory and Porter Generic Strategies Theory. The study will adopt both cross-sectional research design and descriptive survey design. This study targets 19,708 small and medium enterprises located at the Central Business District of Mombasa City County. A sample size of 202 small and medium enterprises will be selected for the study where the units of the study will be business owners/managers. Structured questionnaires will be used to collect primary data. The data collected will be analyzed using SPSS and the specific statistics will be descriptive and inferential statistics. The results will be displayed on charts, tables and graphs. Multivariate regression model and path analysis technique will be used to show the relationship between the independent variables to the dependent variable.


2017 ◽  
Vol 9 (2) ◽  
pp. 161
Author(s):  
Anne Irungu ◽  
Robert Arasa

The purpose of this study was to examine factors influencing firm competitiveness among the Small and Medium Enterprises in Nairobi, Kenya. Specifically the study set out to examine the influence of strategic leadership, technology, resources and organization culture on competitiveness of Small and Medium Enterprises in Nairobi. The study adopted a descriptive research design. The study population comprised of SMEs in Nairobi which fall within the top 100 SMEs in Kenya. There are 79 SMEs from Nairobi County in the Top 100 SMEs in Kenya. A sample size of 25 SMEs which represented 30% of the target population was selected through stratified random sampling. The stratification was based on five business sector categories (real estate, supplies, services, distribution and manufacturing). The study utilized primary data which was collected from top management employees through the use of questionnaire. Data was analyzed using both descriptive and inferential statistics. Correlation analysis was employed to aid in establishing the nature and strength of the relationships between variables of interest. Correlation analysis results indicate that strategic leadership, adoption of relevant technology, resources availability and organization culture has a positive and significant relationship with firm competitiveness. The study concludes that sustainable competitive advantage of the firm stems from effective strategic leadership, adoption of technology, resources availability and effective organization culture. The study recommends that SMEs should embrace various competitive strategies to remain relevant in the market and achieve the required competitiveness. The SMEs managers should embrace strategic leadership practices, benchmark on best practices to ensure constant touch with their customers, embrace adoption of appropriate technology towards realizing higher levels of efficiency and effectiveness, ensure optimal utilization of resources, and cultivate a good balance between the organization culture and the organization processes so as to enhance competitive advantage. This study was confined to factors influencing organizational competitiveness of small and medium enterprises within Nairobi County. Other studies could be pursued in terms of expanding the geographical setting and taking recognition of other variables that could intervene and or moderate the investigated relationship.


2016 ◽  
Vol 11 (1) ◽  
pp. 17-30 ◽  
Author(s):  
Nivea Regina Gallo Vechi ◽  
Amarilis Lucia Casteli Figueiredo Gallardo ◽  
Cláudia Echevenguá Teixeira

As pequenas e médias empresas (PMEs) desempenham importante função na cadeia da construção civil. Essas empresas, contratadas pelas de maior porte, prestam uma gama diversificada de serviços na execução de obras de infraestrutura. A indústria da construção civil é reconhecida pelo potencial em deflagrar significativos impactos ambientais pelas atividades de apoio, de responsabilidade das PMEs, e pelas principais, que também podem ser realizadas por PMEs. Os sistemas de gestão ambiental (SGA), que têm finalidade de gerenciar aspectos ambientais das atividades, ainda são de baixa adesão por parte das empresas de menor porte. Esta pesquisa tem por objetivo identificar os aspectos ambientais vinculados ao fornecimento de serviços executados por PMEs prestadoras de serviços à construção civil no país. Essa pesquisa aplicada exploratória subsidia-se por dados primários e estudo documental, em abordagem qualitativa. Para conhecimento e identificação dos aspectos ambientais associados às atividades de construção civil, selecionaram-se dois empreendimentos de infraestrutura, viário e portuário, bem como seus prestadores de serviços. De modo a contribuir para romper esse estigma de reserva ao uso do SGA por parte das pequenas e médias empresas, propõe-se um roteiro básico para identificação dos aspectos ambientais, a etapa técnica e uma das mais complexas da implantação do SGA.Small and medium sized enterprises (SMEs) play an important role in the construction chain. These companies hired by larger, providing a diverse range of services in execution of infrastructure works. The construction industry is recognized by potential trigger significant environmental impacts by supporting, responsibility SME activities , and the main , which can also be made by SMEs. The environmental management systems (EMS ), which are intended to manage environmental aspects of activities, are still low compliance by the smaller companies . This research aims to identify the environmental aspects linked to the supply of services performed by SMEs providing services for civil construction in the country . This research applied exploratory subsidizes up by primary data and documentary study, in a qualitative approach. For knowledge and identification of environmental aspects associated with construction activities, they selected two infrastructure projects, road and port, as well as their service providers. In order to help break this stigma reserve of the use of EMS for small and medium enterprises, proposes a basic guide for the identification of environmental aspects, the technical and one of the most complex stage implementation of the EMS. 


2017 ◽  
Vol 9 (2(J)) ◽  
pp. 161-173
Author(s):  
Anne Irungu ◽  
Robert Arasa

The purpose of this study was to examine factors influencing firm competitiveness among the Small and Medium Enterprises in Nairobi, Kenya. Specifically the study set out to examine the influence of strategic leadership, technology, resources and organization culture on competitiveness of Small and Medium Enterprises in Nairobi. The study adopted a descriptive research design. The study population comprised of SMEs in Nairobi which fall within the top 100 SMEs in Kenya. There are 79 SMEs from Nairobi County in the Top 100 SMEs in Kenya. A sample size of 25 SMEs which represented 30% of the target population was selected through stratified random sampling. The stratification was based on five business sector categories (real estate, supplies, services, distribution and manufacturing). The study utilized primary data which was collected from top management employees through the use of questionnaire. Data was analyzed using both descriptive and inferential statistics. Correlation analysis was employed to aid in establishing the nature and strength of the relationships between variables of interest. Correlation analysis results indicate that strategic leadership, adoption of relevant technology, resources availability and organization culture has a positive and significant relationship with firm competitiveness. The study concludes that sustainable competitive advantage of the firm stems from effective strategic leadership, adoption of technology, resources availability and effective organization culture. The study recommends that SMEs should embrace various competitive strategies to remain relevant in the market and achieve the required competitiveness. The SMEs managers should embrace strategic leadership practices, benchmark on best practices to ensure constant touch with their customers, embrace adoption of appropriate technology towards realizing higher levels of efficiency and effectiveness, ensure optimal utilization of resources, and cultivate a good balance between the organization culture and the organization processes so as to enhance competitive advantage. This study was confined to factors influencing organizational competitiveness of small and medium enterprises within Nairobi County. Other studies could be pursued in terms of expanding the geographical setting and taking recognition of other variables that could intervene and or moderate the investigated relationship.


2019 ◽  
Vol 118 (2) ◽  
pp. 94-97
Author(s):  
Mohammad Mabrur Taufik ◽  
DewiPuspaningtyas Faeni

Small and Medium Enterprises and Indonesian Cooperatives (SMESCO) are strategies in promoting and introducing Indonesia's superior products to the international community. Through SMESCO, SME owners can work together on standardization of SME products, SME quality standardization and at the same time a forum for fostering SMEs to market their products, through human resource development programs including seminars, training, workshops and product introduction through online shops and mentoring programs. The research aims to prove and analyse the influence of: innovation strategies on the performance of SMEs in SMESCO Indonesia directly or through competitive advantage; innovation strategy towards competitive advantage; competitive advantage towards the performance of SMEs at SMESCO Indonesia. The research population is all SME companies that partner with SMESCO Indonesia. Sampling is done by probability sampling with a simple random sampling method. Data analysis using Structural Equation Modelling-Partial Least Squares, a sample of 147 small and medium business owners at SMESCO Indonesia. The results of the study prove: (1) The innovation strategy does not directly have a significant effect on the increasing performance of SME companies in SMESCO Indonesia but has a significant effect through competitive advantage; (2) Competitive advantage has a significanteffect on the increasing performance of SMEs in Indonesia.


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