Strategies Adopted by Small and Medium Enterprises and Their Effect on Organizational Performance in Kitui County, Kenya

Abstract

Businesses constantly experience multiple challenges and opportunities; therefore, it is increasingly important for firms, including SMEs, to understand how to adapt to the changes in their environment while focusing on their vision, mission, goals, and objectives. Strategies are tools and mechanisms that help firms determine how to respond to environmental changes. SMEs are particularly at risk of the changes because of the specific internal challenges typical for them, such as limited resources. Therefore, strategies may present a valuable opportunity for SMEs to maneuver the constant changes while remaining on target for their goals and objectives. The current study is steered by a general purpose: to determine the tactics used by small and medium-sized businesses in Kitui County, Kenya, and how they affect the company's performance. The specific goals are to determine which approaches small and medium-sized businesses have adopted and how those approaches jeopardize the organization's performance; which approaches small and medium-sized businesses have adopted and how those approaches affect the organization's performance; which approaches small and medium-sized businesses have adopted and how those approaches jeopardize the organization's performance; and which approaches small and medium-sized enterprises in Kitui County, Kenya, have adopted and how those approaches affect the organization's performance. The resource-based view theory (RBV) and contingency theories are the study's key ideas. Return ion assets is a helpful metric to assess the performance of SMEs. To help collect data and material that aids in explaining the phenomena related to strategies and performance, the current study has adopted a descriptive research approach. The study's target population is the i165 SMEs and i17 businesses that comprise the sample population of SMEs registered with the Kitui County government. the study employed semi-structured questionnaires to gather the primary data, while data collection forms were utilized to get secondary data. The research included regression and descriptive analysis, and the findings were presented using text, figures, graphs, and tables. The results demonstrate how SMEs in Kitui adopt and often use techniques to improve organizational performance. The outcomes also showed a strong and favorable correlation between the tactics used and SMEs' corporate success. Personalized approaches, bench marking procedures, ongoing innovation, and capacity building are advised.