Entrepreneurial Orientation and Firm Performance: Evidence from Small and Micro-Enterprises in Kenya

Entrepreneurial orientation is a significant determinant of firm performance. The multifaceted nature of EO prompted a need for a more insightful study to bring to fore the extent of effect it has on performance. Nonetheless, past research has shown that simply examining the effect of Entrepreneurial Orientation on firm performance provides an incomplete picture. To stimulate the relationship between Entrepreneurial Orientation and firm performance, there is need to control internal and external contingent factors. Using data from 333 Small and Micro-enterprises (SMEs) in Uasin-Gishu County in Kenya, the study showed that innovativeness (β1= 0.632, p value = 0.000) and pro-activeness (β2= 0.246, p value = 0.000) have positive effects on firm performance; however, risk-taking  negatively  effects  firm performance (β3= -0.163, p value = 0.002). The study makes significant contributions to the understanding of the relationship between Entrepreneurial Orientation and performance of SMEs. This knowledge is invaluable to both SME owners and policy makers in designing and shaping firm and industry-level strategies that are appropriate for positive outcomes of entrepreneurship. Keywords: Entrepreneurial orientation, Innovativeness, Pro-activeness, Risk-taking, Firm Performanc

Moderating Effects of Networking Capabilities on Marketing Capabilities and Performance of Small Firms in Kenya

Marketing and Networking have separately occupied research for a long time.  Yet the two compliment and or supplement each other especially in small firms in driving superior firm performance.  Hence, this study focused on the two concepts and sought to determine the moderating effect of networking capabilities the relationship between marketing capabilities and performance of small firms. The resource-based view and social capital theories were used as bases for this study.  The results from an explanatory survey of a sample of 384 small firms in Nairobi, Kenya are discussed. Data was collected by use of self-administered questionnaires. Multiple Regression analysis results showed that both marketing and networking capabilities positively influence small firm performance but networking capability does not significantly moderate the relationship between marketing capabilities and small firm performance. The study recommends to managers and advisory service providers that small firms can improve performance by developing both marketing and networking capabilities because each of the capabilities has exclusive influence performance. Key words: Marketing capability, network capability, small firm performance

Moderating Variables On SMEs Strategies And Competitiveness For International Trade: A Survey Of Horticultural Traders In Urban And Peri-Urban Areas In Kenya

Small and Medium sized Enterprises (SME) strategy and competitiveness in international trade in developing countries context have not been fully explored. This paper posits that SMEs competitiveness as a result of its strategy is moderated by an array of internal and external factors. Accordingly, this paper examines key moderating variables on the SMEs strategies as a construct that influence enterprise competitiveness. The objectives of the paper are three fold: to identify the moderating factors on SME strategies and competitiveness, to evaluate the level and extent of moderation of such variables and to evaluate the relationship between enterprise strategy and competitiveness. The hypotheses were developed and tested using data collected using survey of traders in the urban and peri-urban areas of Uasin Gishu District, Kenya. Systematic random sampling technique was used to pick 50 of the 200 traders in the market. Data was collected using self-administered structured questionnaire to the respondents. Factor analysis was used to extract latent factors and provide an understanding of structures and identify the moderating factors. Further, linear multiple regression analysis was performed on the extracted factors against sales volume as a measure of competitiveness. This was used in the assessment of various dimensions of the enterprise performance of SMES. Ten factors with high eigen values of more than one were extracted. The regression model could not provide conclusive results on the effect of strategy on competitiveness, but could be indicative of the complexity of the underlying interactions