Empirical Analysis of Organizational Learning Strategy and Performance of Medium Size Family Owned Businesses in Kenya
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Date
2022
Authors
Kaibung;a, Joseph Mworia
Muchemi, Anne
Mwasiaji, Evans
Journal Title
Journal ISSN
Volume Title
Publisher
Creative Commons Attribution
Abstract
Family owned medium businesses contribute significantly to Kenyan economic development. Despite this vital contribution, family owned medium enterprises have been performing poorly. Profits, customer satisfaction and family members’ satisfaction has been proved to be low. Extant literature shows that organizational learning strategy may influence performance of family owned businesses. Organizational learning strategy may play a critical role in determining the growth, development and laying foundation for superior performance by family businesses in all generations if effectively applied. This study therefore sought to establish the effect of organizational learning strategy on performance of medium size family owned businesses in Kenya. The study was anchored on learning organization and balance score card theories. The philosophical foundation of the study was positivism while the research design was descriptive and explanatory research design. The study targeted four senior managers of 320 mid-size family businesses in selected counties in Kenya. Proportionate stratified sampling of the manufacturing, service and trade sectors was used to establish a representative sample of 560 respondents. Primary data was collected using a questionnaire and secondary data was collected using document review guide. Face, construct and content validity was ensured through guidance from strategic management experts and supervisors. Reliability was tested using Cronbach’s Alpha with coefficient of 0.7, which is considered acceptable. Data was analyzed using descriptive and inferential statistics. Inferential analysis examined the effect of organizational strategy on performance of medium family1owned1businesses in Kenya through the use of multivariate analysis and hypothesis testing. Results were presented using charts and tables. The study significance was to provide insights to family business owners, management and the government on how to improve their performance. The study found that organizational learning strategy positively and significantly affects performance of medium size family owned businesses in selected counties in Kenya. The study recommends management of family owned businesses to initiate structural and systemic reforms aimed at achieving better performance though adoption of effective organizational learning strategy in this modern era
Description
research article
Keywords
Organizational Learning Strategy, Family Owned Medium Size Businesses, Performance of Family Owned Businesses
Citation
Kaibung’a Joseph Mworia et al. “Empirical Analysis of Organizational Learning Strategy and Performance of Medium Size Family Owned Businesses in Kenya" International Journal of Managerial Studies and Research (IJMSR), vol 10, no. 1, 2022, pp. 128-139. doi: https://doi.org/10.20431/2349-0349.1001012