Assessing Influence Of Product Research In Enhancing Performance Of Small And Medium Enterprises In Nyeri Town
Wambugu, Isaya Maina
Opiyo, Humphrey, O.
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In the world today, it is nearly impossible to efficiently sell products or services without conducting market research. Increased competition has led businesses to demand more of market research to improve on performance. The market research strategies used considered the rapidly changing demands of the business competitive edge that may affect the performance of Small and Medium Enterprises (SME) in Kenya. This study aims at assessing the effect of product research in enhancing performance of SME in Nyeri town. The study employed a survey research design as it is efficient and all the variables were measured without increased cost. Using stratified and simple random sampling, the researcher selected a sample of 74 respondents from a sampling frame of 351 SMEs. The criteria for stratification were the amount of capital invested: First stratum constituted all SMEs with a capital investment of below Kshs 50,000, second stratum between Kshs 50,000 and Kshs 150,000 and third stratum above Kshs150, 000. In the second stage, simple random sampling technique was applied where each SME from each stratum was given a serial number in the respective category and the numbers were picked at random. A self-administered structured questionnaire was distributed to the SME’s where 86.5% response rate was achieved. Collected data was analyzed using statistical package for social sciences (SPSS Version 20) to generate descriptive and inferential statistics. The influence of product research in enhancing the performance of small and medium enterprises performance was measured using correlation coefficient and multi regression analysis. The finding of the study revealed positive and statistically significant results for the relationship between product research (β =0. 367 at p value 0. 001) on performance of SME’s The researcher recommended that SME’s should consider market research as a strategic factor that leads to improved performance other than succeeding by mere lack hence should conduct market research regularly. The study suggested that future research could focus on finding out the limiting factors hindering SME’s to conduct regular market research.