Response strategies to environmental changes by small and medium sized enterprises in Eastleigh business district, Nairobi county, Kenya
Abstract
At the boundaries between the firm and environment there exist input-output
dependencies of the organization. The environment is complex and turbulent and
constantly changing and therefore organizations need to adopt response strategies
inorder to respond to the opportunities and threats arising from the changing
environment. The study was guided by two main objectives: first, to determine the
environmental changes faced by small and medium sized enterprises in Eastleigh
business district and second, to establish the nature of response strategies employed
by small and medium sized enterprises in Eastleigh business district to the changing
environment. The study employed cross-sectional survey and data was collected from
76 out of 88 small and medium sized enterprises that were being targeted. The study
results showed that the surveyed small and medium sized enterprises faced various
challenges from the external environment which included intense competition,
political and economic challenges, threat of substitute goods and services among
others. The study results also revealed that SMEs had adopted various response
strategies to cope with the changes in the environment. Although some of the results
were not statistically significant, the study concluded that SMEs adopted a
combination of strategies to respond to the changes in the environment. These
strategies included low pricing of products and service, good customer care services,
offering quality goods and services, speed in delivery of gods and services, focus
strategy among others. Overall results of the study supports pertinent theories and
similar empirical studies. Following the findings of the study in regards to the two
objectives, the researcher has recommended different strategies to be adopted by
policy makers, SMEs owners aswell as management practictioners. Policy makers
should invest more on research and development when coming up with policies, they
should be fully aware of the impact of environment on organizations and these should
guide development of policies which should be flexible and aligned with the changing
environment. Due to some of the results being statistically not significant as well as
limitations of the study, similar studies should be done targeting the same target
population and results be compared with those of the current study. It is also
suggested that similar studies to be conducted targeting other SMEs across Kenya as
well as other organizations in order to validate and/or enhance this study’s findings
Citation
Master of Business AdministrationPublisher
University of Nairobi