Department of Business and Economics

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End date: 2019Subject: search.filters.subject.decision-making

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    The mediating role of entrepreneurial orientation on the relationship between organization capacity and performance of manufacturing small and medium enterprises
    (IIPCCL Publishing,, 2018-11) Mkala, D. Mwamisha; Wanjau, Kenneth; Kyalo, Teresia N.
    This cross-sectional study was carried out to establish the eff ect of organization capacity and entrepreneurial orientation (EO) on performance of manufacturing SMEs in Kenya. The small and medium enterprise (SME) manufacturing segment is integral to the economies of developing countries because it breeds growth, innovation and prosperity. In Kenya, manufacturing dominates SMEs’ contribution to gross domestic product (GDP) and stimulates investment in all economic sectors. However, Kenya’s growth in manufacturing capacity and competitiveness is dismal when compared with similar global competitors. Developing an eff ective organisation capacity and engaging EO obligates manufacturing SMEs to create production processes that can enhance performance outcomes and achieve competitive advantage. A structured self-administered questionnaire was used to gather quantitative data from all food and beverage SMEs registered with Kenya Association of Manufacturers. Data were analysed using inferential statistics and structural equation modelling was used to test the relationships among the study variables. The study found that organisation capacity has a positive infl uence on performance of manufacturing SMEs, and that EO fully mediates the relationship between them. The study recommends that for manufacturing SMEs to maximise the performance capabilities of their resources, they have to establish a norm of entrepreneurial behaviours in all their operations.
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    The mediating effect of entrepreneurial orientation on the relationship between decision-making and firm performance in Kenya
    (International Journal of Commerce and Management Research, 2017-08) Mkala, Mwamisha; Wanjau, Kenneth; Kyalo, Teresia
    Manufacturing firms are the single greatest contributors to industrialization and economic development. In Kenya, manufacturing firms contribute 14% of gross domestic product, train and employ 30% of the workforce, and develop the country’s industrial infrastructure. However, the sector has experienced sustained poor total factor productivity and waning competitiveness in both domestic and global markets. Manufacturing operations seem to lack the input of entrepreneurial management. The purpose of this study was to establish how entrepreneurial orientation (EO) influences the relationship between decision-making and manufacturing firm performance in Kenya. Eighty-three owners/managers of food manufacturing SMEs were surveyed using a semi-structured self-administered questionnaire, and the collected data analyzed using Statistical Package for Social Sciences (SPSS) version 20 and Smart PLS 3 software’s. The findings show that EO fully mediates the relationship between decision-making and firm performance. The paper concludes that coupling decision-making with EO forms a critical strategy for enhancing firm performance. The study recommends that manufacturing firms should develop and utilize employees’ EO capabilities through such actions as strategic delegation.
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