3673 research outputs found
Sort by
The Effect of Quality Management Implementation on Organizational Productivity: Case Study of Kenyan Engineering Firms
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Master of Science in Organizational Development (MOD)The general objective of the study is to investigate the effect of QM on the productivity. The study sought to realize three objectives, namely; to investigate the effect of QM on staff performance of Kenyan engineering firms, to determine the influence of QM on customer satisfaction of Kenyan engineering firms, and to examine the effect of QM on organizational processes of Kenyan engineering firms.
The study employed the use of an explanatory research design. The population for the current study comprised of 60 engineering firms operating in Nairobi of which 53 were sampled for the study. The researcher used simple random sampling technique to collect data from the target population. The data collection method was the use of structured questionnaires and each questionnaire comprised of 38 questions. The quantitative method of data analysis used was both descriptive and inferential analyses. Further associations between the variable were conducted by the use of Statistical Package for Social Sciences (SPSS) program, through which Correlations, ANOVA and regression were conducted among relevant variables to permit further interpretation of the data.
The study found that virtually all the sampled firms had implemented QM with 95% of the respondents indicating their organization had QMS. It established that the QMS were used in almost all the operational areas with 71.4% indicating that the systems were used in all areas and 23.8% indicating that QMS was used in “Design and Project Management”. The study established that Employee Motivation” was the most highly ranked aspect of organizational performance affected by QMS with 73.8%, followed by “Employee Participation in Management” with 71.4%. while “Employee Satisfaction” was ranked last with 59.5%. The study found that the majority of the respondents 66.7% thought the effect of QMS on their overall participation was positive and 61.9% considered QMS to have a positive impact on their morale towards task performance.
It established that 64.3% of the respondents thought QMS had a high impact on customer loyalty. It found that 83.3% and 4.8% of the respondents thought the effect of QMS on customer satisfaction with the firm was high and low respectively. The study made the following findings concerning the effect of QMS on organizational processes. The study found that 71.4% and 4.8% of the respondents considered effect of QMS on communication within the firm to be high and low respectively. It found that 59.5% and 2.4% of the respondent viewed QMS to have a high and low impact respectively on Firm’s communication with customers. It further established that while 9.5% of respondents perceived effect of QMS on organizational learning to be low, 81% considered it high.
A correlation analysis was carried out between QMS and staff performance, customer satisfaction and organizational processes to determine the nature of the relations between QMS and each of the three dependent variables. The study found that Pearson correlation co-efficient values for QMS and staff performance, customer satisfaction and organizational processes were; r = .274, p < 0.01, r = .599, p <.05 and r = .304, p < 0.01, indicating that each of the variables was positively correlated with QMS and that customer satisfaction had the strongest positive association with QMS of the three variables. A regression analysis was also done to assess the effect of QMS on organizational productivity. It was found that the R Square value for the model was .391 indicating that 39.1% of the variance or change in the model is accounted for by staff performance, customer satisfaction and organizational processes. The study established that QMS (the independent variable) predicts the dependent variables (Staff Performance, Customer Satisfaction and Organizational Processes), F (3, 38) = .000. This means that the model has explanatory power that is QMS help account for organizational productivity.
The study concludes that, QMS accords modern firms a means of enhancing staff performance. It also concludes that QMS provides a vital means of achieving customer satisfaction and loyalty. It further concludes that QMS augments and enhances organizational processes leading to smooth running of the firm resulting in enhanced levels of productivity and performance.
The study recommends that, human resource managers and the leadership in the engineering consultancy firms need to embrace and implement QMS as it enhances staff performance. It also recommends that te management and leadership of the engineering consultancy firms in Kenya need to acknowledge and embrace QMS for its potential positive effects on customer satisfaction. That future researchers should examine the effect that QMS has on other aspects of organizational performance such as competitive advantage, product and service quality as well financial performance
Effect of Knowledge Management on Competitive Advantage of Audit Firms in Kenya: Case of Grant Thornton Kenya.
No full textA Research Project Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The motive behind carrying this study was to investigate the effect of the knowledge management on the competitive advantage of audit firms in Kenya. This was to be achieved under the guidance of the three (3) specific research questions that sought to find: 1) what are the dimensions of knowledge management employed by audit firms in Kenya? 2) How does leadership style affect competitive advantage? 3) How does information technology and infrastructure affect competitive advantage? All the itemized information has revolved on these three pillars of the study that would help the overall purpose to be achieved.
The study adopted a survey research design. The target population for the study were all the one hundred and sixty employees of Grant Thornton Kenya. Eighty questionnaires were distributed and 78 responded, this was considered sufficient. The study employed Pearson’s bivariate correlation and multiple linear regressions for analysis. Data collected were entered in SPSS (version 20) which was also used to summarize the responses to give both the descriptive and inferential statistics. After analysis output were summarized using percentages and frequencies then presented using tables and charts. Out of the 80 questionnaires distributed, only 78 were filed and returned representing a response rate of 97.5% which was sufficient for the study.
The first objective of the study was to examine the dimension of knowledge management applied in the firm. It was revealed that at Grant Thornton Kenya, there was a clearly defined system of KM, and a majority agreed that there was sufficient budget allocation for KM. It was also established that majority acknowledged that senior managers looked at knowledge gap to identify competent staff. Majority agreed that they were aware of the KM policies. Knowledge Management dimension had a strong positive correlation to competitive advantage (rho=0.554).
On the second study objective, the study sought to know the effect of technology infrastructure on competitive advantage in audit firms. Most of the respondents agreed that the firm had a comprehensive, adequate database, and it was noted that employees used emails to share and exchange knowledge with others. It was noted that IT infrastructure had aided availability of knowledge when needed and could be trusted in making decisions. IT infrastructure had a positive correlation with the competitive advantage (rho= 0.650).
Finally, the last study objectives sought to know the effect of leadership style to the competitive advantage in audit firms. The findings revealed that organization embraced open door policy and many agreed that managers conducted reviews very well, and managers developed team objectives. Many respondents agreed that knowledge was shared freely in their respective departments and there was a continuous dialogue and instant feedback, which was effective. Knowledge Management dimension had a strong positive correlation with competitive advantage (rho=0.554).
From the findings of the study, knowledge management dimension has proved to be a technique that can be employed by those firms wishing to attain competitive advantage. This dimension relevance and positivity towards firm performance can henceforth not be ignored. From the findings, it can be concluded that the information technology infrastructure has the highest bearing on the competitive advantage of audit firms. Audit firms should embrace the need for leaders from various firms to collaboratively share knowledge across the industry with the aim of exchanging ideas and creating solutions to the challenges facing the industry.
The study recommended that dimension of knowledge management practices had a significant positive effect on competitive advantage. It was also concluded that information technology infrastructure as a major contributor to competitive advantage in the audit industry. Based on these findings, audit firms should make substantial investment in information technology infrastructure to create conducive environment for knowledge management. Based on these findings, the study recommends that audit firm leaders should use effective leadership styles in leading their firms. In doing this, they should focus more on recognizing employees with potential to create and share knowledge and should create an environment friendly to knowledge development.
Further areas of research in Knowledge Management in the audit industry that need to be conducted include the effect of Knowledge Process Capability; Knowledge Acquisition, Knowledge Conversion, Knowledge Protection and Knowledge Application on Organizational Performance. The study also focused on Grant Thornton Kenya, the same study can be conducted for other audit firms in Kenya. This will it mean a larger sample and a confirmation may be made if the same practices are widespread across the countr
Kenyan Pastoralists Improved Way of Life through Innovation and Technology
No full textJournal ArticleThe purpose of this paper is to review literature and put together the available innovation and technologies within three (livestock, dryland farming and alternative livelihoods) areas of possible way of improving life by the pastoralists in Kenya. The document is divided into three chapters capturing livestock, dryland farming and alternative livelihoods. Innovation and technologies in livestock captured include; improved livestock breeds, dorper sheep, boer goats, feed resource improvements, integration of forage legumes into cereal production systems, integration of forage legumes into cereal cropping systems, silage making, hay making, use of bunched herding to restore degraded rangelands, community-based animal health workers, movable house for kids and lambs, modified chumvikuria for camels, hemp cooling technology for camel milk marketing, donkey carrier for hygienic transporting camel milk in pastoral areas, evaporative charcoal milk cooler, participatory market chain approach technology, ultrasound pregnancy diagnosis as low-tech tool to enhance small ruminant production, and improved reproductive techniques. Dryland farming innovation and technology captured here include; drip irrigation, fog harvesting, rain water harvesting, slow-forming terraces, m-fodder technology, use of animal impact to restore degraded rangelands, mango grafting technology, conservation agriculture-ca, crop diversification and new varieties, biotechnology for climate change adaptation of crops , agro-forestry, evergreen agriculture, community-based agricultural extension agents, farmer field school, FFSS, kitchen gardens, hydroponic fodder, mango harvesting tools, ethiorirab bee hive, biogas, microdams/waterpans, and improved dryland crop varieties Alternative livelihoods for pastoralists included in this review are; honey production, ethioribrab’ hive, biogas, gum arabic, poultry farming, green charcoal making, and tanning
Planning for Organizational Change and the Role of Leadership in Implementing Change
No full textJournal ArticleThis paper has critically evaluated aspects of change within an organization by providing the purpose and scope of the article. Major types of orgnaizational change are discussed such as; the common types of change experienced within an organization,incremental and transformational change, organization-wide and subsystem change, renedial and developmental change, and unplanned planned change. These types of change can occur within any orgnization depending on then need of the organization.
Drivers of change are also evaluated in this article recognizing that change cannot just happen on its own, but when there are certain conditions necessitating the change. Change models are analyzed in this paper depicting what various authors have
provided models to show conditions which necessitate change and how to go about managing change. The paper has also provided change models which can be used to implement change.
It is obvious that change affect staff, processes, policies and procedures. There are several effects of change on staff and sometimes people resist change. The question is how should organizations cope with resistance to change? What should be the role of leaders in minimizing resistance to change? What are the ways in which successful leaders can effect change? The paper concludes by noting that change is inevitable and all existing organizations go through change processes. Leaders should anticipate change and develop strategies to adapt to the various changes that organizations are faced with
Assessment of the Key Success Factors Of Strategic Knowledge Management That Influence Organizational Performance: A Case of the World Agroforestry Centre
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of Requirement for the Degree of Masters in Business Administration (MBA)The aim of the research was to evaluate Key Success factors of Strategic Knowledge Management (SKM) that influence organizational performance at the World Agroforestry Centre. The study was guided by the following research objectives; to determine the influence of structure related aspects in SKM on organizational performance; to evaluate the effect of culture related aspects in SKM on organizational performance; to determine the influence of people related factors of SKM on organizational performance.
The study adopted a descriptive research approach and was limited to World Agroforestry Centre (ICRAF) management team based at ICRAF headquarters in Nairobi, Kenya. The total population of 70 managers in headquarters constituting of 16 top level managers, 30 middle level managers and 24 lower level managers out of which 60 respondents was selected and only 41 respondents filled and returned the questionnaires representing 68% of the respondents.
The study utilised questionnaires as the data collection tool, these were structured and administered to the respondents. A pre-test survey was also carried out to test the validity and applicability of the data collection tool. The data analysis was done by use of descriptive and inferential statistics, this was undertaken using SPSS (Statistical Package for Social Sciences). The data was analysed by means of statistical techniques of analysis such as frequencies and percentages, mean and standard deviations and correlation. The findings were presented through bar graphs, pie charts and summarized figures and tables.
This study sought to scrutinise the effect of structure related elements of SKM on organizational performance. The findings indicate that a large portion of respondents agree that IT promotes understanding advent, switch and sharing amongst its employees. On the other hand, most agreed that the organization gives the necessary training on use of IT to improve performance.
The study also examined the influence of culture related factors of SKM on organizational performance. It was indicated that large portion agreed that communication is vital and plays a major part in influencing employee performance. It was also established that trust in the organization facilitates knowledge sharing, and trust is highly ranked among the major strengths in the firm.
To examine the influence of people related factors of SKM on performance of the firm. The findings show that most respondents admitted that workers are sufficiently
v
empowered, and there was doubt about the empowerment initiatives employed being extremely satisfactory and ensuing high staff productivity. On the other, hand many agreed that the leadership has continuously promoted worker empowerment at the firm. It was also noted that many disagreed that employees were highly satisfied with the training initiatives provided and this improved performance.
The study concluded that indeed information technology played a vital role in knowledge creation, transfer and sharing among employees at ICRAF, this is attributed to the organisations use of training on use of technology to improve performance. It was also concluded that communication is vital and plays a key role in influencing the employee performance. Finally, it was also concluded that empowering employees is vital as such tactics result into high employee productivity, there is a need for leaders to continuously promote employee empowerment.
It was recommended that at ICRAF, there should be a continuous promotion of information technology to facilitate knowledge creation, transfer and sharing among its employees.. The organisation should ensure effective communication to facilitate performance of employees. In addition, the organisation needs to ensure employees are satisfied with the leadership in order to ensure smooth operation and knowledge sharing.
The study focussed on influence of structure related aspects, culture related aspects and people related factors of SKM on performance at ICRAF, there is a need to undertake further research in other companies in order to generalize the findings. There is also a need undertake further studies at ICRAF to analyse knowledge and information accessibility, and impact of leadership and support on employee productivity
Effects of Enterprise Resource Planning Implementation on Organizational Performance in the Transport Industry in Kenya
No full textA Research Project Report Submitted to Chandaria School of Business in Partial Fulfilment of the Requirements for the Award of Masters Degree in Business Management (MBA).The study sought to analyze the effects of enterprise resource planning implementation on organizational performance in the transport industry. The following research questions was what the study sought to achieve: to what extent does communication affect organizational performance in the transport industry, does training affect organizational performance in the transport industry?, to what extent does top management support affect organizational performance in the transport industry?, and does management skills affect organizational performance in the transport industry?.
This research adopted a descriptive approach on the effects of enterprise resource planning implementation on organizational performance in the transport industry. The study population was composed of the management staff of small and medium enterprises (SMEs) which was 300 respondents. The study applied stratified random sampling technique so as to allow in coming up with a sample size and the study settled on a sample of 171 respondents, where primary data was collected directly from the respondents by the use of a questionnaire which was composed of both close ended and open ended questions. Qualitative data was collected by the use of questionnaires and analyzed using descriptive and inferential statistics using SPSS. Multiple regression analysis was used in the study to determine the relationship between enterprise resource planning implementation and organizational performance. The study results were presented by the use of tables, bar graphs and pie charts.
From the study analysis communication was found to have a non-statistically significant relationship with performance. Management skills has a positive and significant standardized coefficient value (β=0.388, T-value =3.296, p<0.05). The positive relationship means if, Management skills increases by 1, organization performance in the transport industry will increase by 0.388. Top management support has a positive and significant standardized coefficient value (β=0.195, T-value =2.519, p<0.05). The positive relationship means if, Top management support increases by 1, organization performance in the transport industry will increase by 0.195. And training has a positive and significant standardized coefficient value (β=0.180, T-value =2.723, p<0.05). The positive relationship means if, training increases by 1, organization performance in the transport industry will increase by 0.180.
In conclusion, it is clear that communication, training, top level management support, and management skills affect ERP implementation in the transport sector, therefore the study recommends that the transport sector management should ensure there are mechanisms which enhance the commitment of the top management in the organizations operations, also the level of communication should be upgraded to ensure efficiency and effectiveness. The management should ensure that the employees are well trained and have the required skills to accomplish their tasks in a professional way, the level of management skills should be of high standards to ensure that there is harmony between the management and the employees and that the management is well versed with high skills and it should be for the benefit in achieving organizational goals and objectives
The Effect of Social Capital on the Growth of Medium Enterprises in Kenya
No full textThe general objective of the study was to establish the effect of social capital on the growth of medium enterprises in the service sector in Kisumu City, Kenya. To achieve this objective, the study was guided by the following specific objectives; to determine the effect of structural social capital on the growth of medium enterprises, to determine the effect of relational social capital on the growth of medium enterprises and thirdly, to determine the effect of cognitive social capital on the growth of medium enterprises in Kisumu City.
The study adopted a descriptive correlation research design. The population consisted of 142 CEOs or persons in charge of key departments of registered medium enterprises operating in the service sector in Kisumu City. Stratified sampling technique was used to sample 116 CEOs from the total population, however only 102 out of the 116 responded.
A structured questionnaire was adopted as data collection tool. Data was analysed using descriptive statistical techniques which included frequencies and percentage distributions, mean and standard deviation. Inferential statistical techniques were also used and this included Pearson correlation and regression analysis. Data was analyzed using SPSS as a tool and the results and findings were presented in figures and tables.
The findings on the effect of structural social capital on the growth of medium enterprises revealed that there was a statistically significant positive correlation between structural social capital and growth of medium enterprises, r (102)=.296, p<.05. The results of the linear regression indicated that structural social capital explained 8.7% of the variability of medium enterprises growth (R2=.087, F(1,99)=9.48, p<.05). The regression coefficient findings revealed that structural social capital predicted the growth of medium enterprises (β=.228, p<0.5). This implies that one unit increase of structural social capital would lead to an increase of 0.228 units of the growth of the medium enterprises.
In relation to the effect of relational social capital on the growth of medium enterprises, the results showed that there was a statistically significant positive correlation between relational social capital and growth of medium enterprises, r(102)=.631, p<.05. The linear regression results indicated that relational social capital explained 39.9% of the variability of medium enterprises growth (R2=0.399, F(1,100)=66.32, p<.05). The regression coefficient findings revealed that relational social capital predicted the growth of medium enterprises (β=.696,
p<0.5).
This implies that one unit increase of relational social capital would lead to an increase of 0.696 units of the growth of the medium enterprises.
The findings on the effect of cognitive social capital on the growth of medium enterprises
revealed that there was a statistically significant positive correlation between cognitive social capital and growth of medium enterprises, r(102)=.408, p<.05. The results of the linear regression indicated that cognitive social capital explained 16.7% of the variability of medium enterprises growth (R2=0.167, F(1,100)=19.99, p<.05). The regression coefficient findings revealed that cognitive social capital predicted the growth of medium enterprises (β=.491, p<0.5). This implies that one unit increase of cognitive social capital would lead to an increase of 0.491 units of the growth of the medium enterprises.
It was concluded that most medium enterprises have a preference for network diversity among its employees and there has been an increased growth in customer network over the years although engagement in social organizations did not in any way influence the increase but the growing customer network size had positively impacted sales volumes for the firms. The high bonding relationships between employees has also constituted to the low employee exit rate in the firms. Some firms share same business goals and values with key suppliers and the medium enterprises care for what their customers need.
The study recommends that management of the firms need to take time to participate in social organizations as such activities would help in marketing and networking of the business.
Medium enterprises should maintain a high level of trust between in the firm and the customers. The firms also need to continue sharing their business goals and values with key suppliers and customers on what is in the best interest for both parties. Finally, the study recommends that similar studies should be done in other Counties in Kenya to enable an in-depth understanding on the use of social capital on the growth of medium enterprise across the Republic of Kenya
Factors Affecting the Success of Outsourcing Strategy in Kenya’s Banking Industry
No full textA Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration (MBA)The purpose of the study was to establish the factors affecting the success of outsourcing strategy in Kenya’s banking industry. The study was guided by the following research questions, what is the meaning and scope of outsourcing in the banking industry? How does outsourcing contracts enable Kenyan banks focus on core competencies? How does technology affect the success of outsourcing strategy in Kenya’s banking industry? How does the banks management capability affect the success of outsourcing strategy? What are the recommendations arising out of the findings of this study?
The study used a descriptive research design based on quantitative data collected from twenty four banks. The target population of the study consisted of the 44 commercial banks in Kenya registered by the Central Bank of Kenya. The employees from various departments were sampled to obtain information on outsourced services in their departments. The sampling technique for this study was stratified random sampling technique based on permanent banking employees, working within the strategic level of the bank. Questionnaires were used to collect data from the selected respondents. Data collected was analyzed using descriptive and inferential statistics. Descriptive statistical analysis included methods for organizing and summarizing data such as tables and graphs to organize data, and descriptive values such as the average score was used to summarize data. Inferential statistical analysis included making valid conclusions from the data. This helped predict how a large group behaves based upon information taken from a part of the group.
The study found out that outsourcing enables Kenyan Banks reduce their operating costs, obtain expert and quality service and to focus on the core and strategic activities. It also noted the major challenge experienced by banks in Kenya while outsourcing includes cultural differences and training of new employees provided by the vendor. Other challenges noted were intellectual property protection, unrealistic expectations, low motivation of the outsourced staff and difficulty in managing the vendors.
The study experienced some limitations, such as, some respondents were not willing to provide certain information and others did not respond at all. Recommendation of the study was for banks in Kenya to pilot test sourcing options in order to mitigate risk associated with vendors not being able to fulfill their obligations, to include confidentiality clauses in their contracts to guard against leakage of information. Further there should be stiff penalties for non-performers and those firms that deliver substandard services. Contracting procedures should be enhanced to ensure that the company gets the most competitive service and products from the outsourced firms
Effect of Employees’ Work Experience on Performance within Hotel Industry: A Case of Amber Hotel, Kenya.
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration (MBA)The aim of the study was to investigate the effect of prior work experience on employees at Amber Hotel. The research questions that guided the study are; what is the effect of employee work experience on efficiency and effectiveness? What is the effect of employee work experience on quality of products and services? What is the effect of employee work experience on job performance? And what is the effect of employee work experience on employee’s turnover?
The research design adopted in the study was descriptive design. Further, the study population were 125 Amber Hotel employees from different departments who were selected using stratified sampling design. The final sample selected using this design were 76 employees who were to take part in the study. However, only 64 out of 76 questions were fully filled valid. The questions were prepared using questionnaire data collection techniques. Further, the fully filled information was gathered and analysed using the SPSS statistical tool. The findings from the study were further presented in the form of frequency tables and figures using percentages, mean, standard deviations and correlation analysis.
The study investigated the effect of work experience on effectiveness and efficiency. From the study, The employee work experience was found to enhance the ability to create organisational which relies upon the ability of the organisation to acquire experienced employees who not only ensure efficiency in the processes but also ensure that they are effective in what they do at Amber Hotel. It was recommended that the management at Amber Hotel hire employees that are more experienced. Such employees are important in the organisation as they are motivated and are familiar with the tasks assigned. As such, it would be advised that amber hotels hire experienced employees. This would ensure that the efficiency and effectiveness of the organisation is enhanced.
The study also investigated the effect of work experience on quality of products and services. Further, hiring experienced employees helps improve the quality of services and products because they already know the desired results and ways in which to achieve the desired results which uses the learnt knowledge and skills in delivering quality services to the customers. In enhancing the quality of products and services as a result of work experience, Amber hotels management should help employees in realizing their skills learnt so that they can use them in the production process in the organisation. This is important because employee using the prior work experience feel it simple to perform the current tasks assigned without any problems, but they would also require being encouraged to use the prior experience in the present tasks.
In addition, the study investigated the effect of work experience on job performance. There was to a great extent which experienced employees have internalised values, beliefs as well as job expectations and allows employees to efficiently perform their tasks without repeats or errors. Amber hotels management should coach its employees the importance of using work experience in performing their tasks. This is important because employee using the prior work experience feel it simple to perform the current tasks assigned without any problems, creating not only job satisfaction but also enhanced performance.
Finally, the study established the effect of work experience on turn over. Employees had mixed reactions to the study questions relating to employees work experience. However, it disagreed that employees with lower levels of experience have the perception that they cannot be able to perform challenging tasks and thus would leave the organisation to look for satisfactory alternatives and employee experience is the one that creates job satisfaction or dissatisfaction.
Therefore, Amber hotel management should identify the areas of employees’ dissatisfaction, which would make them leave the organisation even with the high experience that they have. As such, this would make these experienced employees continue staying in the organisation
Assessment of Organizational Capabilities Affecting Performance of SME’s In Nairobi County
No full textA Research Project Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)Small and Medium Sized Enterprises (SME’s) form an important economic pillar in Kenya that has been central to economic growth of the country. The Kenya private Sector Alliance (KEPSA) recognized SME sector as the leading contributor to both GDP growth and creation of employment opportunities. However, underneath the impressive metrics attributed the general economic impact in the country, SME’s face survival pressures resulting from business factors like the ferocious marketing competition or even the macro-economic factors. Further, internal organizational factors form critical components that determine the success or failure of an SME business. This study sought to evaluate the influence of organizational capabilities on the success of SME businesses. The study sought to evaluate the influence of organizational capability factors which include; leadership style, financial resources and technology on their impact in the performance of an SME business.
The study adopted a descriptive research design, as the foundational procedure in conducting a field survey utilizing quantitative techniques to gather the required data. The study was limited to Nairobi County, where the unit of analysis was SME’s operating within Nairobi and the unit of observation was the SME owners and managers. The study settled on a sample size of 98 respondents, who were all active frontline people in the SME sector. The study settled on a structured questionnaire, which contained close ended questionnaires. Section A of the questionnaire contained the demographic details of the respondents. The subsequent sections of the questionnaire were split into separate sections organized in order of the research variables. A 5-point interval scale was used to measure the respondent’s level of satisfaction, for all the questions. The researcher took the initiative to distribute the questionnaires in person, and made follow-up, via phone calls and text messages. Eventually 64 respondents were able to fill the questionnaires in time for data analysis, which represents a response rate of 65.3%.
The study found that SME leadership and the owner commitment to engage the employees and seek their input towards tackling of critical organization problems had a significant impact in the success of the SME, registering a mean of 4.45. The study established that the most crucial component of business finances was the amount of financial resources currently available for the business with a mean of 4.73. The study found that, ICT enhanced internal organizational interactivity where enhanced level of communication between employees was enabled enhanced the performance of the business with an average mean of 4.25.
The study concludes that, leadership style has a strong correlation with the success of the SME business, thus any contributing factor that could potentially limit the effective dispensation of leadership duties, is bound to negatively affect the performance of the business. The study concludes that, the prevailing financial health of an organization is an indicator of the SME business growth rate. The study concludes that technology improves the organization coordination with the external entities such as customers and suppliers which contributes to enhanced service delivery.
The study recommends for a cooperative approach to leadership, where the SME leadership, encourages the employees to work in unity and align all their efforts towards the realization of the organizational objectives. The study recommends that, SME businesses need to adopt strict revenue management and book keeping policies to ensure a strong record management for the financial resources. The study recommends that, SME’s should treat the deployment of ICT systems as critical strategic factor for organizational administration. This is because; ICT platforms wield impact on efficiency in service delivery and contribute to the reduction in operational costs by leaning transactional operations