Enterprise Sustainability Performance Measurement in Small and Medium Enterprises in Kenya: Construct Validation Using Confirmatory Factor Analysis

Abstract

This study sought to validate existing sustainability performance measurement scales in the context of Small and Medium Enterprises (SMEs) in Kenya. The study was cross-sectional. Data were collected through a structured questionnaire from a sample of 221 SMEs drawn from a target population of 517 SMEs using a stratified random sampling strategy. The respondents were apex managers of the sampled SMEs. Valid responses were received from 134 respondents representing a 60.63 percent response rate. Descriptive statistics and confirmatory factor analyses were performed to achieve the study’s objective. From the analysis, four-factor loadings were extracted suggesting that the sustainability performance of SMEs in Kenya could be viewed from a quadruple bottom line perspective, that is, economic, internal processes, environmental and social perspectives. The study confirmed the reliability and validity of the measurement scales. The study, therefore, concluded that sustainability performance measurement in SMEs in Kenya could best be viewed from the integration of environmental, social, internal processes, and economic performance aspects. The study recommends empirical studies in Kenya to integrate the four dimensions in assessing SMEs’ performance