Effect of Strategic Change Management on Performance of Small and Medium Enterprises in Nairobi County in Kenya

Abstract

Small and Medium Enterprises have recognized value of implementing effective strategies in order to succeed in the increasingly competitive market. These strategies need to be effectively managed through a well laid out and executed strategic change management to achieve success leading to increased performance by the SMEs. This research aimed at establishing effect of Strategic change management on performance of SMEs in the County of Nairobi. To reach this goal, the study employed the descriptive cross-sectional research by way of survey. This was administered through application of questionnaires which was used to get the required information from 200 respondents.The quantitative data gathered was analysed through usage of mean scores, frequency distribution, standard deviations as well as regression analysis. The outcome from the study noted a positive effect of strategic change management on performance of SMEs. The research revealed that there needs to be inclusion of all relevant stakeholders in the change management activities to ensure change is successfully implemented to attain increased performance. This study also noted that employees need to be motivated, trained and empowered in order for them to be completely dedicated to the change to make certain it is successful since they are the implementers of this change. The outcome also demonstrated that most SMEs use various control tools to track, monitor and ultimately measure the performance of the business as brought about by various strategies implemented in the ventures to ensure they are working towards the business goals set. The findings also revealed that most of the SMEs have started measuring theirbusinesses wholistically on financial and non-financial performance matrices. The outcome additionally indicated that performance of most SMEs had increased due to Strategic change management initiatives being implemented in these businesses. The outcome from the study also indicated that a large bulk of these SMEs are adapting different strategies as a method of gaining competitive advantages over others. The study conlcuded that the performance of SMEs in Nairobi was positively influenced by strategic change management. The study also concluded that change management initiatives being implemented should be continuously monitored to ensure their effectiveness. The study additionally concluded that SMEs need to adopt unique and superior change management strategies so as to obtain a competitive advantage over others hence increase performance through profitability and growth. The study makes recommendations that stakeholders need to be involved for them to be wholly committed to the change process, use of a documented strategic plan to ensure methods and procedures for developing and implementing strategies are clear and that monitoring and tracking of performance is well communicated and implemented in the entire business. Finally, this study provides suggestions for further research.