Strategy Implementation as a Competitive Tool in Enhancing Performance of Small and Medium Enterprises in Nairobi Central Business District

Abstract

An increasingly important emerging focus is in the design of organizations towards flexibility, improved efficiency and positive response to environmental pressures. For effective strategy implementation processes management of SME’s need to be adaptive and responsive this implies a radical shift away from traditional structures and decision making patterns to a more direct, innovative approach when it comes to strategy implementation; the firms internal structures need be redesigned to make it meet customer needs, and these will enable the firm to be competitive to test their competitive strategy. The purpose of the study was to establish strategy implementation as a competitive tool in enhancing performance of small and medium enterprises in Nairobi County. The study focused on small and medium enterprises in the Nairobi Central Business District; a sample number was selected to represent the entire population. The selected firms were researched through use of questionnaires which were designed to capture the relevant information required by the researcher. The target respondents included owner managers, directors, and partners of various SME’s in the Central Business District. The researcher utilized descriptive cross sectional survey and these were the findings; it was established that many parties within an organization; top management, middle level management and lower management participate in strategy implementation. The findings indicated that organizational leadership played a key role in strategy implementation processes; followed by other variables like communication networks, adoption of intermediate technology, conducive work culture and climate. The findings also noted of some constraints towards strategy implementation, the contributory factors were identified as poor management practices, low morale & employee motivation, failure to respond to environmental demands. The study also highlighted contributors to the firm’s performance, these featured good leadership practices, adequate organizational resources; dedicated workforce, conducive environment among others. The study made some conclusive remarks notably the following, that successful strategy implementation practices requires sound knowledge of the industry and business environment. It noted that it was everybody’s responsibility to ensure organizations success through understanding own roles and duties relative to strategy implementation practices; it made a quick observation on the need to motivate employees and give incentives to all involved, participatory management being mandatory. The study made for recommendations, notably, adoption of modern strategic management values, classification of SME’s in relative measurable variables to enable similar SME’s analysed separately as there is great diversity in their background, infrastructure, finances, and other parameters. The study also noted need to undertake longitudinal studies in future. Finally these was need to research further on other SME’s in other counties to analyse their strategy related constraints and low best to manage the enterprises.