Influence Of Strategy-structure Alignment On Financial Performance Of The Top 100 Small And Medium Entreprises in Kenya
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Date
2015-11Author
Machocho, Eunice
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Small and Medium Enterprises (SMEs) are businesses in both formal and informal
sector employing 1-50 workers. SMEs are very vital to economic growth and
development in most countries, developing and developed ones alike. They are also
great contributors of employment worldwide. The study was guided by the research
objectives: to establish the strategy-structure alignment in the top 100 small and
Medium Enterprises in Kenya and to establish the influence of strategy-structure
alignment on financial performance of the top 100 SMEs in Kenya.A descriptive
survey study was conducted to gain empirical data to help fill the existing gap. The
study consisted of 100 Top small and medium sized firms in Kenya. Data was
collected through structured questionnaires. Data obtained were edited, coded and
analysed using descriptive statistics in the form of frequency, percentages, mean and
standard deviation with the aid of statistical package for social sciences (SPSS)
version 20 computer software. The inferential relationship was imputed using the
Pearson’s regression analysis. The findings showed that strategy-structure alignment
among the top 100 SMEs in Kenya was one major factor that determined the firms’
success. Majority of the firms were found to have put adequate measures in place to
ensure that the strategies in force is clearly and seamlessly aligned to the structures,
and that strategy followed structure; but also structure was flexible enough to follow
strategy. This alignment qualified all the studied firms to make it to the top 100.While
the study featured on the seven possible changes in an environment, the concept of
performance for any business firm can be linked to very many other factors not
included in this study. It is recommended that the management of top 100 SMEs
continually enhance this alignment to realize further success. Based on the strength of
the relationship, the management of the SMEs will have to set up clear policies on the
same and communicate to the all the stakeholders on what it entail, what is expected,
the potential benefits and challenges
Publisher
University of Nairobi