Determinants of Innovativeness in Manufacturing Small and Medium Enterprises in Kenya

2021 ◽  
Vol 9 (3) ◽  
pp. 1-27
Author(s):  
Ben Mkalama ◽  
E. Bitange Ndemo ◽  
Jackson Maalu ◽  
Ganesh Pokhariyal

In spite of firm innovativeness being identified as essential for growth, there exists a dearth of studies that relate entrepreneurial orientation and innovativeness in manufacturing small and medium enterprises in the developing world. In this article, we unpack the dimensions of entrepreneurial orientation and examine their influence on innovativeness of manufacturing small and medium manufacturing enterprises. This was a cross sectional survey with a stratified sample size of 363 firms.   Regression models were used to validate the derived hypothesis. We discuss the implications of the results which show that the dimensions were individually not found to have a significant effect on innovation but yet entrepreneurial orientation had an influence on firm innovativeness. We identify the need for additional studies to broaden the scope of future studies across several geographies. We conclude by challenging the ever-dynamic local institutional policies that have not had a significant impact on the effect of entrepreneurial orientation on innovativeness of SMEs across many developing countries.

2018 ◽  
Vol 11 (9) ◽  
pp. 37
Author(s):  
Azizah Hashim ◽  
Che Mohd Zulkifli Che Omar ◽  
Mohd Sahandri Gani Hamzah ◽  
Azmi Umar

The purpose of this paper is to discuss the organizational performance and entrepreneurial orientation of Malaysian Small and Medium Enterprises (SMEs). Literature has shown that leadership and entrepreneurial orientation are important for organizational performance but still inadequate. Thus, this investigation hopes to close this gap in the literature and contribute to a new understanding of relationships between leadership and organizational performance, and entrepreneurial orientation served as a mediator. This study comprised a sample of owners or managers in the manufacturing and service sectors of SMEs located in Kuala Lumpur and Selangor, as their largest representation of SME establishments and significant contributions to Malaysia economy. A cross-sectional research design was used to examine the relationships between leadership behavior, entrepreneurial orientation and organizational performance among SMEs. The respondent’s lists were sought from the SME Corp. Malaysia at http://www.smecorp.gov.my and http://www.smeinfo.com.my. Data were gathered based on a mailed questionnaire and personal administered questionnaires. The findings indicate that entrepreneurial orientation acted as a partial mediator in the relationship between leadership behavior and organizational performance. Transformational leadership and transactional leadership were found to have a significant relationship with entrepreneurial orientation and organizational performance of SMEs. An important implication of this research indicated that both transformational and transactional leadership behavior positively increased the individual outcome and lead to higher organizational performance.


2019 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Motšelisi C. Mokhethi ◽  

Small enterprises represent a large proportion of enterprises in most economies and are a driving force for economic growth. Most small enterprises refrain from exporting due to a number of challenges. The aim of this study was to determine the exporting barriers perceived to constrain exporting from Lesotho-based manufacturing micro, small, and medium enterprises (MSMEs). The study adopted a cross-sectional descriptive design. Data were collected from 162 Lesotho-based manufacturing enterprises through a self-administered questionnaire. Factor analysis revealed three export barrier groupings, namely international, distribution, and financial constraints. The descriptive statistics showed that Lesotho-based manufacturing MSMEs perceive lack of financial resources for market research, lack of financial resources to finance export sales, and lack of excess capacity for exports, all internal to an enterprise-loading under financial barriers as constraints to exporting. The study added to the literature new classes of export barriers. The findings suggest that the government of Lesotho has to put in place mechanisms that can reduce financial constraints to enable MSMEs to contribute as expected.


2019 ◽  
Vol 10 (1) ◽  
pp. 231
Author(s):  
Olawale FATOKI

The purpose of this study is to investigate the effect of sustainability-oriented innovation (SOI) on the performance of small and medium enterprises (SMEs) in South Africa. The study adopted a multi-dimensional measure of performance (financial, social, environmental, innovation and quality). The study used the quantitative research approach and the descriptive and causal research design. Data was collected from one hundred and ninety eight owners/managers of SMEs in the manufacturing sector. The cross-sectional survey method (self-administered questionnaire) was used for data collection. The participants in the study were conveniently sampled. Descriptive statistics, factor analysis, correlation and regression analysis were used for data analysis. The Cronbach’s alpha was used as a measure of reliability. The findings of the study indicate that economic, environmental and social dimensions of SOI have significant positive relationships with the five measures of performance. Limitations, areas for further study and recommendations to improve the SOI of SMEs are suggested.


2016 ◽  
Vol 18 (2) ◽  
pp. 51-61
Author(s):  
Munmun Basak ◽  
Indranil Guha

Due to the significant contribution in output, exports and employment, the Small and Medium enterprises (SEMs) play a critical role in the Indian economic structure. In this study a three dimensional; namely information, transactional and strategic decision making perspectives of the e-procurement functionalities are investigated. A cross-sectional survey is used as the methodology for the data collection. After a systematic analysis it was found that in the MRO industry the MSEMs used the e-procurement system mainly for purchasing, communication and transactional purposes. However, strategic utilisation of the e-procurement for the optimisation of SCM process in the MRO industry in India is still in its nascent stage. The results are limited to its sample size due to the size of the MRO and its MSEMs industry. Thereafter, success factors and performance of the e-procurement in these MSEMs is also studied to analyse the utilisation of e-procurement in detail.


Author(s):  
Eric Kabisa ◽  
Emmanuel Biracyaza ◽  
Jean d’Amour Habagusenga ◽  
Aline Umubyeyi

Abstract Background Relapse to substance use after successful detoxication and rehabilitation is a public health concern worldwide. Forty to sixty percent of persons in general relapsed after completing detoxication and rehabilitation treatments. Although substance use remains a burden in Rwanda, very little is known about relapse among people with substance use disorder (SUD). Hence, this study aimed to examine prevalence and the factors associated with relapse to substance use at Icyizere Psychotherapeutic Centre (IPC), Rwanda. Methods Retrospective, cross-sectional survey was conducted among 391 patients with SUD at IPC. Multiple logistic regression models using STATA version 13 were used to determine the factors associated with relapse among the patients with SUD. Results Majority (84.1 %) of the participants were males. More than half (54.1 %) of them were aged between 18 and 30 years with the age average of 33 years (SD = 11.9 years). The results showed a higher prevalence of relapse among patients with SUD (59.9 %). The multivariate analyses indicated that people with SUD living only with their mothers had a greater risk of relapse compared to those with both biological parents [OR = 1.9, 95 % CI (1.02–3.6), p = 0.04]. Patients that were hospitalized between one to three months were more likely (11.2 times) to relapse after treatments compared to those who spent more than three months in hospitalization [OR = 9.2, 95 % CI (1.1–77.6), p = 0.02]. Furthermore, people that used more than two substances had 1.5 greater risk to relapse than those who consumed one substance. Participants were more likely to relapse if they lived with their peers [OR = 2.4, 95 % CI: (1.2–7.8), p = 0.01] or if they lived in a family with conflicts [OR = 2.1, 95 % CI (1.05–9.7), p = 0.02]. Conclusions This study is conducted at one institution caring for patients with SUD. The prevalence was 59.9 %. Future studies are recommended to investigate the effectiveness of the existing relapse prevention programs in order to adjust prevention strategies.


2020 ◽  
Vol 11 ◽  
pp. 115-127
Author(s):  
Afrim Loku ◽  
Nadire Loku

This study aims to provide an understanding of the importance of the SME sector in the socio-economic development of Kosovo and examine in particular the influence of internal factors on them. A cross-sectional survey was conducted with Kosovo SMEs through an anonymous online questionnaire. This study confirms that all internal factors - managerial skills and competencies, business experience, access to finance and technological capabilities, depending on a period, have a significant impact on the performance of SMEs. While access to finance is considered as a major challenge, technology is considered to help improve business performance. However, results revealed that poor managerial skills and competencies, despite having a significant impact on the performance of SMEs, they were also related to access in finance and technological skills, making it difficult to run a business. Training and empowerment of SME managers in key business areas can be an opportunity to improve business performance.


Author(s):  
Ugwu-Oju M. Obiageri ◽  
Vincent A. Onodugo ◽  
Mbah, Paulinus Chigozie

The paper assesses the effectiveness of commercial bank loans as sources of funding Small and Medium Enterprises (SMEs) in Southeast, Nigeria. A cross-sectional survey method wherein structured questionnaire was used to collect data was adopted. A sample of 500 respondents was randomly selected from the five industrial hubs in the five states of Southeast, namely Nnewi, Aba, Enugu, Abakiliki, and Owerri. With the aid of pecking order theory (POT)/hypothesis of Lending, percentage formula, and SPSS version 20.0 tools, the data generated from the respondents were analysed. Among others, the results of the analysis reveal that SMEs and commercial banks are highly indifferent to the loans facilities; strict collateral requirements, high interest rates, and the nature of requirements for guarantors dissuade SMEs from accessing loans; and government interventions provided palliative measures but failed to address the problems associated with the loans. Therefore, this paper recommends policy reforms to reduce interest rate, collateral and guarantor requirements. Further research on how to modernise and harmonise other external sources of SME funding such as ‘daily contribution’ and ‘Isusu’ systems is required.


Author(s):  
Adeyinka Oluwa ◽  
Umar Abbas Ibrahim

The study assessed the impact of organizational culture on the performance of Small and Medium Enterprises (SMEs) in Abuja. The questionnaire used was created based on Cameron and Quinn’s Organizational Culture Assessment Instrument (OCAI) in identifying different types of organizational culture. Using a cross-sectional survey research design, the primary data was obtained through administered structured questionnaire to one hundred and twenty-seven (127) SMEs at different sampled locations in Nigeria. Pearson Product Moment Correlation analysis was used to identify the relationship that exists between the variables and the results revealed that organizational culture measured by clan culture, market culture, adhocracy culture and Hierarchy culture variables have significant relationship of r = 0.616, 0.514, 0.604 and 0.784 respectively with performance. The study concludes that organizational culture have significant influence on the performance of Small and Medium Enterprises (SMEs) in Abuja and that Hierarchy culture is found important in promoting innovative performance than the other type of culture. The study recommendation is thus that SME owners should ensure that all new employees receive a formal briefing on the company's traditions, beliefs, vision, and strategies. They should create and print a common set of procedures and policies to promote seamless discharge of duties and responsibilities in such a way that will foster innovative performance in the work place.


2021 ◽  
Vol 17 (1) ◽  
Author(s):  
Victor Laibuni Baariu ◽  
James Gathungu ◽  
Bitange Ndemo

This study determines the influence of competitive strategy drivers on the performance of manufacturing SMEs in Nairobi County in Kenya. Small and medium enterprises (SMEs) are the backbone of many economies all over the world through creation of employment opportunities as well as wealth creation for entrepreneurs. Strong competitive strategy drivers offer advantage to SMEs to help them achieve good performance and remain competitive in their respective markets. The study was anchored on resource-based theory which provided a framework for examining the association between the research variables. For the methodology, a cross-sectional survey was done covering 334 manufacturing small and medium enterprises in Nairobi County, Kenya. Structured questionnaires were used for data collection with a response rate of 89.6%. Various descriptive statistics were used to project the demographic characteristics of the association and the respondents. Inferential statistics was used to assess up the connection between the factors and test the model. The results indicated that the three competitive strategy drivers of environmental based drivers, resource-based drivers and hybrid strategy drivers exhibited significant relationship with performance of the Manufacturing SMEs in Nairobi county. The study’s recommendations will be useful to management of manufacturing-sector SMEs in developing long term strategies to address constraints that could have led to low capacity utilization and productivity in the sector. Additionally, it may be used to guide policy formulations geared to support manufacturing SMEs operations. The researcher recommends similar research to be undertaken in other SMEs and also have more managers respond to the questionnaires in order to enrich the collected data.


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