Effect of crisis mitigation strategies on performance of Small and Medium Enterprises in the manufacturing sector in Nairobi County
Date
2022
Authors
Mwangi, William
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Across the globe, business entities especially SMEs are increasingly being faced with unpredictable events that include crises which if not timely and effectively managed may constitute to poor organization performance. In Kenya, the high failure rate of SMEs has largely been blamed on poor management of unexpected crises. The purpose of this study was to establish the effect of crisis mitigation strategies on the performance of small and medium enterprises in the manufacturing sector in Nairobi County. The specific objectives of this study were to establish the effect of confrontation mitigation strategies, cooperation mitigation strategies, containment mitigation strategies and preventive mitigation strategies on performance of SMEs in the manufacturing sector within Nairobi County. The study was anchored on Situational Crisis Communication Theory and complimented by Resource Based View. This study employed a descriptive cross-sectional research design. The target population was 228 registered manufacturing SMEs operating within Nairobi City County. The study selected a sample of 144 respondents using Krejcie and Morgan table while stratified random sampling was used to distribute respondents across the sub-sectors. Using a questionnaire, primary data was gathered. The data collected was analyzed using SPSS where descriptive and inferential statistics were conducted. Inferential statistics was conducted using multiple linear regression analysis and correlation analysis. The results of the study were presented and analyzed using frequency tables, figures and inferential statistics. The analysis indicated that there is a positive correlation between confrontation mitigation strategies, cooperation mitigation strategies, containment mitigation strategies, preventive mitigation strategies and performance of small and medium enterprises. The study also indicated that there was strong coefficient of determination between crisis mitigation strategies and performance. The study indicated the challenges which small and medium enterprises encounter and indicated the possible solutions which will improve their performance. The findings of the study were limited to small and medium enterprises in manufacturing sector and thus the study should be carried in other industries which may include service industries. The study experienced the challenge of the respondents not answering the questionnaire within the stipulated time, however the researcher left the questionnaires to the respondents to fill to their own convenient time. The study also experienced Covid-19 restrictions where the respondents were denied entrance in the organizations to meet the respondents. The researcher ensured that all the MOH guidelines were followed.
Description
A Dissertation submitted in partial fulfilment for the award of a Master of Commerce Degree at Strathmore University
Keywords
Crisis mitigation strategies, Small and Medium Enterprises (SMEs), Manufacturing sector_Nairobi County