The Perceived Relationship Between Strategic Planning and Performance of Smes in Nairobi City County

Abstract

The research’s principal goal was to explore how SMEs in Nairobi viewed the relationship between strategic planning and organizational success. The survey research design was used to investigate the topic at hand. All 30,253 SMEs in Nairobi, Kenya were included in the study. A total of 395 people were appraised from this group. The respondents were chosen using a systematic approach. A structured questionnaire was used to assemble primary data for this investigation. In data mining, descriptive and inferential statistics were used. According to the research's verdicts, 82 percent of SME's had an existing strategic plan in place, while 18 percent did not. According to the data, 36% of SME's had a strategic plan that lasted more than 5 years, 28% of SME's had a 5-year strategic plan, 15% of SME's had a 2-year strategic plan, and 12% of SME's had a 1-year strategic plan. According to the results of the adoption planning process, on average, respondents gave the strategic planning process a high rating, with a mean of 3.582 and a standard deviation of 0.654. The study's discoveries also exposed that, on average, strategic planning had a significant impact on performance, as seen by the overall mean of 3.714 and standard deviation of 0.46. The general mean of 3.593 and standard deviation of 0.472 indicate that SMEs have performed well during the last five years. Strategic planning had a weak but significant relationship with organizational performance, according to correlation analysis. SME's should implement a strategy that assures adequate resource allocation, according to the report. This is due to the fact that resources are essential in the implementation, monitoring, and assessment of strategic goals. As a result, it is critical that all SMEs have processes that allow for equal resource allocation. This is due to the fact that resources are essential in the implementation, monitoring, and assessment of strategic goals. As a result, all SMEs must put in place processes that allow for equitable resource allocation across all departments so as to guarantee that strategic plans are carried out effectively. The research also suggests that SMEs provide ongoing training to their personnel in order to aid in the implementation of strategic initiatives. Employees will be able to carry out the duties required of them with proper training, ensuring that the strategic plans are implemented as planned.