Influence Of Control Environment On Performance Of SME Projects In Machakos County, Kenya.

Abstract

Small and medium enterprise projects greatly contribute to a country’s national output through creation of employment opportunities, provide technological innovation conduit and create new products. Although their economic contribution is indisputable, provocative argument on specific factors influencing their performance has remained unresolved to date. This study sought to determine the extent to which control environment influence performance of SME projects in Machakos County. Applied pragmatism philosophy and descriptive survey research design were used. The hypothesis ;that control environment does not significantly influence performance of small and medium enterprise projects in Machakos County was tested at 95% confidence level. A structured questionnaire was used to collect data. A sample size of 223 of SME projects in Machakos County was selected. Multiple regressions analysis was done. The study finding revealed that management philosophy and operating style significantly influenced financial performance with β= 0.147(p=0.002). Whereas, integrity and ethics values of the organization, commitment to job competence, organizational structure, assignment of authority and responsibility and human resource policy and practices had insignificant influence on financial performance aspect. Further, integrity and ethics values of the organization and management philosophy and operating style had direct significant influence on non-financial performance with β=.119, (p=0.008) and β=.102(p=0.036) respectively. While commitment to job competence, organizational structure, assignment of authority and responsibility and human resource policy and practice had insignificant influence on non-financial performance.SME project Management should improve the insignificant components of control environment to ensure effective internal control system to enhance performance.