Strategic Management Competitive Practices and Performance of Agro-Processing Small and Medium Enterprises in Nairobi City County, Kenya
Abstract
Agro-processing Small and Medium Enterprises in Nairobi City County play a significant role in Kenya's economy through employment generation and food security enhancement. Despite their strategic importance, these enterprises face persistent performance limitations due to inefficiencies in strategic management competitive practices. This study examined the influence of strategic planning, competitive analysis, resource allocation, and adaptability to changing market environments on the performance of agro-processing SMEs in Nairobi City County, Kenya. The study was grounded in theoretical frameworks including the Balanced Scorecard Theory, Resource-Based View Theory, and Dynamic Capabilities Theory. A descriptive research design was adopted, targeting 177 registered agro-processing SMEs. A sample of 123 enterprises was selected using simple random sampling techniques. Primary data was collected through structured questionnaires administered to business owners and managers, achieving a response rate of 87.0% with 107 completed questionnaires returned. Data analysis employed descriptive and inferential statistical methods including correlation and multiple regression analysis using SPSS version 26. The findings revealed strong positive correlations between all strategic management competitive practices and SME performance. Multiple regression analysis showed that the four predictors collectively explained 79.6% of the variance in SME performance (R² = 0.796, F = 99.156, p < 0.001). All individual predictors made statistically significant contributions, with adaptability emerging as the strongest predictor (β = 0.293, p < 0.001), followed by competitive analysis (β = 0.246, p < 0.001), resource allocation (β = 0.219, p = 0.001), and strategic planning (β = 0.209, p = 0.002). The study concludes that strategic management competitive practices significantly influence the performance of agro-processing SMEs. The study recommends that SMEs should enhance competitive positioning through integrated strategic approaches. Policymakers should design support programs that strengthen strategic management capabilities. Future research should investigate technological adoption and external financing access as moderators of strategic practice effectiveness.
Keywords: Strategic Management, Competitive Practices, Performance, Agro-Processing, Small Medium Enterprises
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