Abstract
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.
Highlights
Competitiveness is a characteristic which allows a business undertaking to be successful when it competes with other business undertakings (Ireland and Hitt, 1999)
In terms of years of experience of the respondents, 47.6% had experience of between 510 years while 33.3% had worked between 1-5 years and 19% had worked for over 10 years. This implies that the respondents had worked long enough in the organizations and were knowledgeable on the issues being addressed by the study. 47.6% of the respondents were general managers, 33.3% were operations manager and 19% were business development managers
The study concludes that strategic leadership influenced organizational competitiveness
Summary
Competitiveness is a characteristic which allows a business undertaking to be successful when it competes with other business undertakings (Ireland and Hitt, 1999). While there are a number of policies which can be implemented to improve the competitiveness of a financial system, at its foundation is the competitiveness of firms. A company achieves competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces. There are many routes to competitive advantage, but they all involve giving buyers what they perceive as superior value compared to the offerings of rival sellers. The two main items used to measure performance are the firms market share within the particular industry in which it operates and its profitability. In addition to the financials the tool considers customer issues, learning and growth within the organization and internal business processes. Internal business process is the path to achieving strong financial results and superior customer satisfaction
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