Moderating Variables On SMEs Strategies And Competitiveness For International Trade: A Survey Of Horticultural Traders In Urban And Peri-Urban Areas In Kenya

Abstract

Small and Medium sized Enterprises (SME) strategy and competitiveness in international trade in developing countries context have not been fully explored. This paper posits that SMEs competitiveness as a result of its strategy is moderated by an array of internal and external factors. Accordingly, this paper examines key moderating variables on the SMEs strategies as a construct that influence enterprise competitiveness. The objectives of the paper are three fold: to identify the moderating factors on SME strategies and competitiveness, to evaluate the level and extent of moderation of such variables and to evaluate the relationship between enterprise strategy and competitiveness. The hypotheses were developed and tested using data collected using survey of traders in the urban and peri-urban areas of Uasin Gishu District, Kenya. Systematic random sampling technique was used to pick 50 of the 200 traders in the market. Data was collected using self-administered structured questionnaire to the respondents. Factor analysis was used to extract latent factors and provide an understanding of structures and identify the moderating factors. Further, linear multiple regression analysis was performed on the extracted factors against sales volume as a measure of competitiveness. This was used in the assessment of various dimensions of the enterprise performance of SMES. Ten factors with high eigen values of more than one were extracted. The regression model could not provide conclusive results on the effect of strategy on competitiveness, but could be indicative of the complexity of the underlying interactions.

The role of government and the international competitiveness of SMEs

“…However, in sub-Saharan Africa, there is limited research on factors, which influence the commitment of SMEs to exports. In addition, there is a paucity of studies that reflect on the factors that could ensure that SMEs from developing countries are competitive in the international marketplace (Mmieh et al , 2012; Tenai et al , 2009). One of such factors could be the role of government and its export-related agencies in supporting SMEs in Africa.…”

“…One of such factors could be the role of government and its export-related agencies in supporting SMEs in Africa. The existing research in this regard only focusses on the role of export promotion agencies in moderating export barriers (Haddoud et al , 2018; Tenai et al , 2009). Milanzi (2012) also examined export barriers in Africa from the perspective of firms in Tanzania.…”

Analysis Efficiency Production and Strategies of Small-Medium Scale Enterprises

“…The assets and skill of the firm, which are the basis for competition, provide the foundation for sustainable competitive advantages. Competitive advantages can be achieved if SMEs choose the right business strategy is to first conduct the strategic management process [19] Implementation of strategic management can increase competitiveness, reduce costs, improve decision-making, facilitate implementation of employee motivation system, shorten delivery times, higher quality of customer satisfaction, etc [20], [21].…”

Factors influencing choice of strategic management modes of small enterprises

“…The conclusion was that the extent to which objectives are met is influenced by an analysis of opportunities and threats facing the organization as well as an assessment of strengths and weaknesses. Tenai et al (2009) carried out an exploratory survey on the external variables moderating SE's strategies and competitiveness for international trade in Kenya. The survey covered 50 horticultural traders in urban and peri-urban areas of Uasin Gishu District in the month of September 2007.…”