Competitive Strategies and Performance of Small and Medium Enterprises in Mandera Town

Abstract

The study examined the strategies in place among SMEs in Mandera town that help them to be competitive and how this influences their level of performance. The researcher applied a descriptive study design. In total, 162 SMEs selected through Creswell’s (2012) sampling formula, from the formula the sample size was 353 respondents. To gather data, questionnaires were issued to business owners or their senior managers of these SMEs. The analysis of the collected data was done descriptively and inferentially. The study established that that the key competitive strategic among SMEs in Mandera town include formation of strategic alliances, partnerships, cost minimization, joint ventures and focus strategies. Competitive strategies have a direct and significant influence on how SMEs in Mandera town perform. The study concludes that the key competitive strategic among SMEs in Mandera town include formation of strategic alliances, partnerships, cost minimization, joint ventures and focus strategies. Competitive strategies significantly influence performance of SMEs. As a recommendation, senior managers of all SMEs in Mandera town should increase the adoption of strategic alliances, partnerships, cost minimization, joint ventures and focus strategies. In order to positively influence performance of their organization, the management team and owners of all SMEs operating in Kenya should increase the adoption of competitive strategies.