Business Strategies and Non-Financial Performance of Small and Medium Enterprises In The Real Estate Sector Nairobi City County, Kenya.
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Date
2022
Authors
Musundi, Duncan Flora
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The study's primary purpose was to determine how successful small and medium-sized enterprises in Nairobi City County, Kenya performed in the real estate industry. The study was conducted with the following objectives: evaluating the effect of Focus strategy on the non-financial performance of SMEs in Nairobi City County real estate sector, Knowing the effect of Innovation strategy on the non-financial performance of SMEs in Nairobi City County real estate sector, Differentiation strategy’s effect on SMES and assessing the effect of Cost Leadership strategy on the non-financial performance. The information for this study was gathered through structured questionnaires and a descriptive research approach. The survey targeted all 87 SMEs in Nairobi City County real estate sector. Business managers from real estate enterprises were among those who took part in the survey. 74.7 percent of the 87 persons who were asked to participate said yes. As indicated by Karl Pearson, the data was examined using multiple regression analysis and correlation analysis. The study found a negative relationship between Focus strategy and non-financial success but a favourable relationship between Differentiation, Innovation, and Cost Leadership strategies. According to the study, small and medium-sized enterprises should invest more in study, Research and Development. This will assist them in coming up with fresh ideas, giving them an advantage over their competitors. SMEs must ensure that their products are constantly distinctive enough to suit market demands. This will allow them to gain a competitive advantage that will last. According to the study, SMEs employ a cost leadership approach, investing heavily in mass manufacturing and distribution while diligently reducing costs. Small and medium-sized real estate companies must adopt new technologies to reduce project costs and improve non-financial performance. Finally, more research in the private and governmental sectors and other countries is needed to compare and contrast the findings of this study with those of other studies. This study focused solely on non-monetary performance. Financial performance might be the focus of other investigations. Only a few business strategies were examined in this study. Other strategic aspects should be examined in future studies.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of Degree of Master in Business Administration (Strategic Management Option), Kenyatta University, November 2022
Keywords
Business Strategies, Non-Financial Performance, Small and Medium Enterprises, Real Estate Sector, Nairobi City County, Kenya