The effects of strategic management practices on the performance of Micro and Small Enterprises (MSEs) in Nairobi, Kenya

Abstract

The study assessed the effects of Strategic management practices on MSE's performance in Nairobi. Generally strategic management practices and processes were designed for implementation by large private firms (Andersen, 2004). The study sought to find their application and effects within the micro and small enterprises (MSEs) sector in Nairobi. Chapter one outlines the general overview of the study. This is basically the background of the study, statement of the problem and the objectives of the study.

The main objective of the study was to assess the effects of strategic management practices on the MSE' s performance in Nairobi. The specific objectives focused on the effects of environmental scanning, strategy formulation, strategy implementation and strategy control on MSE's performance in Nairobi. The chapter also outlined the significance, scope and limitations of the study.

Chapter two has reviewed the literature review .It has discussed both the theoretical and empirical studies done within and without Kenya with respect to various variables that influence strategic management process and organizational performance. In the end of the review Gaps have been identified and a conceptual framework of the study developed. Chapter three introduces and describes the research methodology used to carry out this study. The study was a descriptive survey with the target population being the MSE's within Nairobi with accessible population being MSE's within Nairobi Central District Area.

Stratified random sampling technique was used and data was collected by use of a questionnaire where by five pre-test questionnaires were used to test the suitability of the tool. This chapter four basically presents the study findings of the data collected. Data analysis involved examination, categorization and tabulation of evidence so as to address initial propositions of the study (Yin, 1994).

To analyze and present the data, the researcher used frequencies, percentages, mean and standard deviation. On the other hard data was presented in tabular and graphic displays and specifically tables and bar graphs. The study found that strategic management is practiced in. an unsystematic and uncoordinated manner by the MSEs. The initial stages strategic management practices recorded higher prominence and down to the evaluation stage fewer MSE's were. involved. Chapter five is on discussion, conclusion and recommendations. The study observed that the above findings are attributed to lack of formal training on the strategic management process. The study therefore recommended that MSE managers and leaders be formally trained on the strategic management skills.