Effect of strategic orientation on performance of SMEs in Nandi, Kenya

In most of the developing countries, the performance of the SMEs is a key issue today. However, many SMEs face the constraints of technological backwardness, lack of human resource skills, weak management systems and entrepreneurial capabilities, unavailability of appropriate and timely information, insufficient use of information technology, poor product quality. As a result, there exists a low level of performance. Strategic orientation of SMEs is one of the most critical factors for their success. However, the SMEs in developing countries are considered less strategically oriented than those of developed countries. The main purpose of the study was to determine the effect of strategic orientation on performance of small enterprises in Nandi County. The study specifically established the effect of learning orientation on SME performance. This study adopted an explanatory research. The population of study comprised 2053 in Kapsabet Town registered SMEs. Thus the study concluded that learning orientation, customer orientation, technology orientation and entrepreneurial orientation makes it possible for SMEs to achieve competitive advantage and thus a higher level of performance.

Autorentext

Joel Oloishorua Nakola is a lecturer at University of Eldoret, at the school of economics. He has published in international peer reviewed journals and has been a consultant for international non governmental organisations, both locally and abroad.This is part of his recent works that provides a guide to small and medium enterprises.