Strategic Adaptation and Performance of Small and Medium Manufacturing Enterprises in Kariobangi Light Industries

Abstract

The aim of this research project was to determine the influence of strategic adaptation on performance of manufacturing SMEs operating at Kariabangi light industries. This study was aligned with both the theories of resource dependency and dynamic capability. The population consisted of 78 registered manufacturing companies in Kariobangi Light Industries. The analysis involved both qualitative and quantitative approaches, in particular, use of descriptive mean and standard deviation statistical parameters. The findings showed that investments in technological innovation, relationship with suppliers, tolerance of changes and errors, and innovation strategy were the most common adaptation strategies of most SMEs. Further, the regression analysis of the data showed that strategic adaptation had a statistically significant influence on the performance of the SMEs. The results supported both the resource dependency and dynamic capability theories. Organizations need resources for their long-term existence, which they are largely able to get from their own environment that also hosts competitors who are after the same resources. Thus, in order to survive such an environment, SMEs need strategic adaptation to overcome these environmental challenges. This study recommends that further studies be undertaken using longitudinal approaches to enhance reliability of the findings and in policy development for the benefit of SMEs.