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The Effect of Business Development Services on Performance of Small and Medium Manufacturing Enterprises in Kenya

Author

Listed:
  • Dr. Washington O. Okeyo Ph.D

    (Lecturer, Department of Busines Administration, School of Business, University of Nairobi,)

  • Dr. James Gathungu, Ph.D,

    (Senior Lecturer, Department of Business Administration, School of Business, University of Nairobi,)

  • Prof. Peter K’Obonyo Ph.D

    (Professor, Deaprtment of Business Administration, School of Business, University of Nairobi,)

Abstract

Small and Medium Enterprises have been regarded to play significant roles of job creation, poverty alleviation and economic development of many countries worldwide. These enterprises are however affected by many different factors. How these factors manifest singly or jointly is therefore a key concern for these organizations. Vital among these factors are business development services that affect how organizations produce and sell their goods and services. There is however a dearth of studies focusing on effects of aspects of business development services on organizational performance in Kenya. This study aimed at establishing how market access, procurement services and infrastructure facilities affect performance of small and medium manufacturing enterprises in Kenya. The study adopted a cross sectional survey design and examined primary data collected from 150 enterprises in Nairobi. Inferential statistics were used to interrogate relationships between independent variables and performance while descriptive statistics were used to determine distribution, central tendency and dispersion and hence establish conformity to linear regression requirements. Contrary to expectation, the results for market access did not show any relationship but procurement services and infrastructure facilities each had a positive and significant influence on performance of the enterprises. Furthermore, it was established that the joint effect of the three variables on performance of studied firms is greater than their individual effect. This study therefore concludes that, since procurement services and infrastructure facilities showed a positive influence on performance of small and medium manufacturing enterprises in Kenya, these enterprises should adopt strategies that enhance procurement and improve infrastructure facilities to experience better performance.

Suggested Citation

  • Dr. Washington O. Okeyo Ph.D & Dr. James Gathungu, Ph.D, & Prof. Peter K’Obonyo Ph.D, 2014. "The Effect of Business Development Services on Performance of Small and Medium Manufacturing Enterprises in Kenya," International Journal of Business and Social Research, LAR Center Press, vol. 4(6), pages 12-26, June.
    • Handle: RePEc:lrc:larijb:v:4:y:2014:i:6:p:12-26
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    Keywords

    Business Development Services; Performance;

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