IDEAS home Printed from https://ideas.repec.org/a/bdu/oijepm/v3y2018i2p38-53id797.html
   My bibliography  Save this article

Entrepreneurial Orientation And Small And Medium Enterprises Growth: Empirical Evidence From Smes In The Manufucturing Sector Of Nairobi County, Kenya

Author

Listed:
  • Isaac Ruto Katialem

  • Dr. Stella Muhanji

  • Prof. Robert Otuya

Abstract

Purpose: This study sought to investigate then effect of entrepreneurial orientation on the growth of small and medium manufacturing enterprises in Nairobi County, Kenya. Methodology: The research adopted a cross section design and descriptive research approach. Stratified random sampling was used to collect primary data from 265 SMEs in the manufacturing sector from a population of 853 SMEs registered with Kenya Association of Manufacturers (KAM) in Nairobi County, Kenya. Data was collected by use of a self-administered questionnaire and analysed by statistical computations of means, percentages, and correlation and regression analysis using STATA statistical software. Findings: Findings of this research indicate that with the exception of risk taking and proactiveness; innovativeness, autonomy and competitiveness aggressiveness were all statistically significant in explaining the growth of Small and medium manufacturing enterprises in Nairobi County, Kenya. Evidence from this study supports the evidence that innovativeness, autonomy and competitiveness aggressiveness are key entrepreneurial dimensions that are imperative for enhancing SME growth. Unique contribution to theory, practice and policy: From the empirical findings we recommend that the management of SMEs need to put more emphasis on innovativeness, autonomy and competitiveness aggressiveness in order to enhance the growth of their firms

Suggested Citation

  • Isaac Ruto Katialem & Dr. Stella Muhanji & Prof. Robert Otuya, 2018. "Entrepreneurial Orientation And Small And Medium Enterprises Growth: Empirical Evidence From Smes In The Manufucturing Sector Of Nairobi County, Kenya," International Journal of Entrepreneurship and Project Management, IPRJB, vol. 3(2), pages 38-53.
    • Handle: RePEc:bdu:oijepm:v:3:y:2018:i:2:p:38-53:id:797
    as

    Download full text from publisher

    File URL: https://iprjb.org/journals/IJEPM/article/view/797
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Choonwoo Lee & Kyungmook Lee & Johannes M. Pennings, 2001. "Internal capabilities, external networks, and performance: a study on technology‐based ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 615-640, June.
    2. Ann Teresa Wanjiru Mwaura & Jane Wanjiku Gathenya & John M. Kihoro, 2015. "Dynamics of Entrepreneurial Orientation on the Performance of Women owned Enterprises in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(9), pages 14-34, September.
    3. Zahra, Shaker A. & Covin, Jeffrey G., 1995. "Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis," Journal of Business Venturing, Elsevier, vol. 10(1), pages 43-58, January.
    4. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    5. Jeffrey G. Covin & Dennis P. Slevin & Randall L. Schultz, 1994. "Implementing Strategic Missions: Effective Strategic, Structural And Tactical Choices," Journal of Management Studies, Wiley Blackwell, vol. 31(4), pages 481-506, July.
    6. John Karanja Ngugi & Maurice Otieno Mcorege & Joseph Mwangi Muiru, 2013. "The Influence of Innovativeness on the Growth of SMEs In Kenya," International Journal of Business and Social Research, LAR Center Press, vol. 3(1), pages 25-31, January.
    7. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    8. José C. Casillas & Ana M. Moreno, 2010. "The relationship between entrepreneurial orientation and growth: The moderating role of family involvement," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(3-4), pages 265-291, May.
    9. Slater, Stanley F. & Narver, John C., 2000. "The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication," Journal of Business Research, Elsevier, vol. 48(1), pages 69-73, April.
    10. N. Venkatraman & John E. Prescott, 1990. "Environment‐strategy coalignment: An empirical test of its performance implications," Strategic Management Journal, Wiley Blackwell, vol. 11(1), pages 1-23, January.
    11. Jeffrey G. Covin & Dennis P. Slevin, 1991. "A Conceptual Model of Entrepreneurship as Firm Behavior," Entrepreneurship Theory and Practice, , vol. 16(1), pages 7-26, October.
    12. Samwel Otieno & Prof. Henry M. Bwisa & John M. Kihoro, 2012. "Influence of Entrepreneurial Orientation on Kenya¡¯s Manufacturing Firms Operating under East African Regional Integration," International Journal of Learning and Development, Macrothink Institute, vol. 2(1), pages 299-319, February.
    13. John Karanja Ngugi & Maurice Otieno Mcorege & Joseph Mwangi Muiru, 2013. "The Influence of Innovativeness on the Growth of SMEs In Kenya," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 3(1), pages 25-31, January.
    14. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    15. Johan Wiklund & DEAN Shepherd, 2003. "Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1307-1314, December.
    16. Ana M. Moreno & José C. Casillas, 2008. "Entrepreneurial Orientation and Growth of SMEs: A Causal Model," Entrepreneurship Theory and Practice, , vol. 32(3), pages 507-528, May.
    17. Terrence E Brown & Per Davidsson & Johan Wiklund, 2001. "An operationalization of Stevenson's conceptualization of entrepreneurship as opportunity‐based firm behavior," Strategic Management Journal, Wiley Blackwell, vol. 22(10), pages 953-968, October.
    18. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
    19. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kunusia Lilian Khalayi & Prof. Gregory Simiyu Namusonge & Dr. Susan Naikuru, 2024. "Influence of Human Capital Ecosystem on Growth of Leather Manufacturing Small and Medium Enterprises in Kenya," International Journal of Entrepreneurship and Project Management, IPRJB, vol. 9(1), pages 56-69.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    2. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    3. Hernández-Perlines, Felipe & Covin, Jeffrey G. & Ribeiro-Soriano, Domingo E., 2021. "Entrepreneurial orientation, concern for socioemotional wealth preservation, and family firm performance," Journal of Business Research, Elsevier, vol. 126(C), pages 197-208.
    4. Antonio Rodríguez-Peña, 2023. "Corporate entrepreneurship and firm performance relationship under the moderating effect of environmental dynamism: Replication and extension analysis," Journal of International Entrepreneurship, Springer, vol. 21(4), pages 550-585, December.
    5. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    6. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.
    7. Nida Nazar & Sara Ravan Ramzani & Temoor Anjum & Imran Ahmed Shahzad, 2018. "Impact of Entrepreneurial Orientation of Bank Performance in Pakistan," Business Management and Strategy, Macrothink Institute, vol. 9(1), pages 290-309, December.
    8. Tobias Kollmann & Christoph Stöckmann, 2014. "Filling the Entrepreneurial Orientation–Performance Gap: The Mediating Effects of Exploratory and Exploitative Innovations," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1001-1026, September.
    9. Lavlu Mozumdar & Valentina C. Materia & Geoffrey Hagelaar & Mohammad Amirul Islam & Gerben van der Velde & S. W. F. (Onno) Omta, 2022. "Contextuality of Entrepreneurial Orientation and Business Performance: The Case of Women Entrepreneurs in Bangladesh," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 94-120, January.
    10. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    11. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    12. Marcin Suder, 2025. "Determinant or moderator? Exploring the role of the external environment in the relationship between dimensions of entrepreneurial orientation and firm performance. Evidence from the hotel industry," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-53, December.
    13. Izaias Martins, 2016. "Network Usage, Entrepreneurial Orientation and Their Effectiveness on SMEs Growth," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 25(1), pages 18-41, March.
    14. Abubakar S. Garba & Ibrahim Kabir & Mahmoud A. Mahmoud, 2019. "Entrepreneurial Orientation And Growth Potential Of Microenterprises In Northwest, Nigeria," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-20, June.
    15. Farhad Uddin Ahmed & Louis Brennan, 2019. "Performance determinants of early internationalizing firms: The role of international entrepreneurial orientation," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 389-424, September.
    16. Schweiger, & Baldauf,, 2016. "„Entrepreneurial Orientation“: Eine Bestandsaufnahme der Konstruktschärfe," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(4), pages 423-447.
    17. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    18. Chiho Ok & He Soung Ahn, 2019. "How Does Entrepreneurial Orientation Influence the Sustainable Growth of SMEs? The Role of Relative Performance," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    19. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Ignacio Canales, J., 2013. "Entrepreneurial orientation and the threat of imitation: The influence of upstream and downstream capabilities," European Management Journal, Elsevier, vol. 31(3), pages 263-277.
    20. Hwan Jin Kim, 2018. "Reconciling Entrepreneurial Orientation and Dynamic Capabilities: A Strategic Entrepreneurship Perspective," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 180-208, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdu:oijepm:v:3:y:2018:i:2:p:38-53:id:797. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chief Editor (email available below). General contact details of provider: https://iprjb.org/journals/IJEPM/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.