STRATEGIC RENEWAL, SOCIAL MEDIA ENTREPRENEURSHIP AND PERFORMANCE OF YOUTH OWNED AGRO-PROCESSING SMALL AND MEDIUM ENTERPRISES IN SELECTED COUNTIES IN KENYA.

Abstract

Strategic renewal emphasizes on establishing a set of activities that an organization undertakes to alter its resource pattern and strategic course. In Kenya, despite the critical role played by SMEs in the country, research has shown that 90% of most business startups fail in their third year and especially those owned by the youths. The general objective of the study was to establish the influence of strategic renewal on performance of the youth-owned agro-processing SMEs in Kenya and to determine the moderating effect of social media entrepreneurship on the same relationship. Specifically, the study sought to establish the influence of organization structure, examine the influence of capacity building, determine the influence of entrepreneurial networking on performance of youth owned agro-processing small and medium enterprises in selected counties in Kenya. Further, the study sought to examine the moderating role of social media entrepreneurship on the relationship between Strategic renewal and performance of youth owned agro-processing small and medium enterprises in selected counties in Kenya. The study was anchored on strategic management, social exchange, resource mobilization and social network theories. To achieve these objectives, the study adopted a positivist philosophy and a descriptive research design. The target population of the study were 287 owner/manager youth owned agro-processing SMEs in Kenya registered by the Ministry of Trade and Industry in the four (4) County governments of Nyeri, Kirinyaga, Murang’a and Nyandarua. All 287 owner managers participated in the study thus it was a census as the whole population was used. Primary data was collected using a semi-structured questionnaire. Data was analyzed using descriptive and inferential statistics with the aid of SPSSV23. The study established that organizational structure R 2 =0.136 and P=0.000, capacity building R 2=0.498 and P=0.000, and entrepreneurial networking strategies, R2= 0.092 and P=0.000, all had a statistically significant influence on performance of youth-owned agro-processing smss in Kenya. On the moderating influence of social media entrepreneurship, R2 changed by 23.2% (from 50.9% to 74.1%), indicating that social media entrepreneurship had moderating effect on the relationship between strategic renewal and performance of youth owned agro-processing SMEs in Kenya. This study concluded that social media entrepreneurship has a moderating influence on the relationship between strategic renewal and performance of youth owned agro-processing smes in Kenya. SME owners have thus to seek and establish networks outside their business circles and that, youth owned agro-processing smes develop mechanisms that enable them to review and renew their operational strategies. Further, the government and other stakeholders should develop policies that will enable youth smes adopt new strategic alliances with large organisations.