Influence of Emergent Strategic Management Mode on Performance of Small and Medium Enterprises in Machakos Town, Kenya

Abstract

The objective of the study was to investigate influence of emergent strategic management mode on performance (sales) of SMEs in Machakos Town, Machakos County. Descriptive research design was employed to ensure a complete description of the situation of SMEs performance in Machakos town. The target population was 16,399 licensed SMEs in Machakos Town.These SMEs where grouped into eight categories.Using stratified random sampling method,a sample of 390 respondents was selected from the target population.Data was collected using questionnaires design to obtain accurate information from respondents. Collected data was analyzed using both qualitative and quantitative techniques. Due to non-normality and non-homogeneity of the dependent variable,a non-parametric test (Mann-Whitney U test) was prefered instead of a parametric test (t-test).Under this test,the data was categorized into low users of each strategy and high users of each strategy. The findings were presented using tables, figures, pie charts and graphs.The results indicated that SMEs which applies emergent strategy practices tend to have higher performance.Thus we conclude that emergent strategy practices positively influence performance of SMEs in Machakos Town. The study findings help SMEs strengthen their operations to ensure that the SMEs have a competitive edge to match their counterparts across other counties. The study recommends the need to have owners/managers of the small and medium enterprises undertake basic business and management skills training. Training the senior managers give opportunity to learn strategic management skills which will be valuable in their daily operations.