Factors influencing sustainable competitive advantage of small and medium enterprises in Nairobi County
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Date
2013-11Author
Waithiru, Harrison K
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Increased competition threatens the attractiveness of an industry and reducing the
profitability of the players. It exerts pressure on firms to be proactive and to formulate
successful strategies that facilitate proactive response to anticipated and actual changes in the
competitive environment, (Drucker, 1969). Small and medium-sized enterprises (SMEs) in
any country contribute to economic growth. In Kenya, the SMEs play an important role in
employment and wealth creation, income distribution, accumulation of technological
capabilities and spreading the available resources among a large number of efficient and
dynamic small and medium size enterprises (IDRC, 1993).The study sought to answer the
following research question; to what extent does SMEs enjoy sustainable competitive
advantage in Nairobi County? What are the factors influencing sustainable competitive
advantage the small and medium enterprise in Nairobi County? The study used descriptive
research design in form of cross sectional survey. The population of interest of this study will
be top 100 SMEs in Kenya. Since the study was census one respondent was selected from
each organization forming a sample of 100 respondents. Self-administered drop and pick
questionnaires were distributed to managers currently employed by Top 100 SMEs in Kenya.
Descriptive analysis was employed; this included the use of weighted means, standard
deviation, relative frequencies and percentages. The data was coded to enable the responses
to be grouped into various categories. Descriptive statistics was used to summarize the data.
The study revealed that Small and Medium Enterprise organization has capability to sustain
competitive advantage. The study concludes that in order to enhance sustainable competitive
advantage there is need for Small and Medium Enterprise to be innovative in creation of new
product, there is need for SMEs to deliver new products in the market, there is need for
SMEs to offer superior service than their competitors and there is need for SMEs to be
committed in the research and development. The study found that the major factors affecting
sustainable competitive advantage in SMEs, were their competition from competitors,
increased number of SMEs, strategic alliance , their capabilities , customer relationship
management , cost of doing the business and focus in the market
Citation
Master Of Business Administration, University Of Nairobi , 2013Publisher
School of Business