IDEAS home Printed from https://ideas.repec.org/a/lrc/larijb/v4y2014i6p12-26.html
   My bibliography  Save this article

The Effect of Business Development Services on Performance of Small and Medium Manufacturing Enterprises in Kenya

Author

Listed:
  • Dr. Washington O. Okeyo Ph.D

    (Lecturer, Department of Busines Administration, School of Business, University of Nairobi,)

  • Dr. James Gathungu, Ph.D,

    (Senior Lecturer, Department of Business Administration, School of Business, University of Nairobi,)

  • Prof. Peter K’Obonyo Ph.D

    (Professor, Deaprtment of Business Administration, School of Business, University of Nairobi,)

Abstract

Small and Medium Enterprises have been regarded to play significant roles of job creation, poverty alleviation and economic development of many countries worldwide. These enterprises are however affected by many different factors. How these factors manifest singly or jointly is therefore a key concern for these organizations. Vital among these factors are business development services that affect how organizations produce and sell their goods and services. There is however a dearth of studies focusing on effects of aspects of business development services on organizational performance in Kenya. This study aimed at establishing how market access, procurement services and infrastructure facilities affect performance of small and medium manufacturing enterprises in Kenya. The study adopted a cross sectional survey design and examined primary data collected from 150 enterprises in Nairobi. Inferential statistics were used to interrogate relationships between independent variables and performance while descriptive statistics were used to determine distribution, central tendency and dispersion and hence establish conformity to linear regression requirements. Contrary to expectation, the results for market access did not show any relationship but procurement services and infrastructure facilities each had a positive and significant influence on performance of the enterprises. Furthermore, it was established that the joint effect of the three variables on performance of studied firms is greater than their individual effect. This study therefore concludes that, since procurement services and infrastructure facilities showed a positive influence on performance of small and medium manufacturing enterprises in Kenya, these enterprises should adopt strategies that enhance procurement and improve infrastructure facilities to experience better performance.

Suggested Citation

  • Dr. Washington O. Okeyo Ph.D & Dr. James Gathungu, Ph.D, & Prof. Peter K’Obonyo Ph.D, 2014. "The Effect of Business Development Services on Performance of Small and Medium Manufacturing Enterprises in Kenya," International Journal of Business and Social Research, LAR Center Press, vol. 4(6), pages 12-26, June.
    • Handle: RePEc:lrc:larijb:v:4:y:2014:i:6:p:12-26
    as

    Download full text from publisher

    File URL: http://thejournalofbusiness.org/index.php/site/article/view/536/425
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
    2. David Pollard & Maria Jemicz, 2006. "The internationalisation of Czech SMEs: some issues relating to marketing knowledge deficiencies," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 3(3/4), pages 400-416.
    3. Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2005. "SMEs, Growth, and Poverty: Cross-Country Evidence," Journal of Economic Growth, Springer, vol. 10(3), pages 199-229, September.
    4. Thorsten Beck & Asli Demirgüç-Kunt, 2004. "SMEs, Growth, and Poverty," World Bank Publications - Reports 11278, The World Bank Group.
    5. William Easterly, 2002. "Inequality Does Cause Underdevelopment," Working Papers 1, Center for Global Development.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dr. Washington O. Okeyo Ph.D & Dr. James Gathungu, Ph.D, & Prof. Peter K’Obonyo Ph.D, 2014. "The Effect of Business Development Services on Performance of Small and Medium Manufacturing Enterprises in Kenya," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(6), pages 12-26, June.
    2. Dr. J. G. Sri Ranjith & Dr. O. G Dayaratna Banda, 2014. "Determinants of Success of Small Business: A Survey-Based Study in Kuliyapitiya Divisional Secretariat of Sri Lanka," International Journal of Business and Social Research, LAR Center Press, vol. 4(6), pages 38-50, June.
    3. S.I. Ocheni & T.I. Gemade, 2015. "Effects of Multiple Taxation on the Performance of Small and Medium Scale Business Enterprises in Benue State," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(3), pages 345-364, March.
    4. Mohammed Ait Lahcen & Pedro Gomis‐Porqueras, 2021. "A Model of Endogenous Financial Inclusion: Implications for Inequality and Monetary Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 53(5), pages 1175-1209, August.
    5. El-Mallakh, Nelly & Maurel, Mathilde & Speciale, Biagio, 2018. "Arab spring protests and women's labor market outcomes: Evidence from the Egyptian revolution," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 656-682.
    6. Hung Pham, 2017. "Determinants of New Small and Medium Enterprises (SMEs) Access to Bank Credit: Case Study in the Phu Tho Province, Vietnam," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(7), pages 1-83, June.
    7. Dr. Washington O. Okeyo & Dr. James Gathungu & Prof. Peter K’Obonyo, PhD, 2014. "The Impact of Business Development Services on Entrepreneurial Orientation and Performance of Small and Medium Enterprises in Kenya," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(7), pages 38-49, July.
    8. Darshana Mudalige & Noor Azizi Ismail & Marlin Abdul Malek, 2016. "Exploratory Study on Relationship between Entrepreneur Characteristics and Dynamic Capabilities in Export SMES," Paradigm, , vol. 20(2), pages 113-130, December.
    9. Saibal Ghosh, 2023. "Gender and discouraged borrowers: Evidence from India," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1731-1752, October.
    10. Dieu Ne Dort Talla Fokam & Paul Ningaye & Celestin Chameni Nembua, 2020. "Ethnic Diversity Management and Poverty in Developing Countries," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 19(1), pages 47-60, June.
    11. Claessens, Stijn, 2006. "Access to financial services: a review of the issues and public policy objectives," Journal of Financial Transformation, Capco Institute, vol. 17, pages 16-19.
    12. Dennis Coates & Jac Heckelman & Bonnie Wilson, 2011. "Special-interest groups and growth," Public Choice, Springer, vol. 147(3), pages 439-457, June.
    13. Cravo, Túlio A., 2011. "Are small employers more cyclically sensitive? Evidence from Brazil," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 754-769.
    14. Túlio A. Cravo & Caio Piza, 2019. "The impact of business-support services on firm performance: a meta-analysis," Small Business Economics, Springer, vol. 53(3), pages 753-770, October.
    15. Parvaneh Shahnoori & Glenn P. Jenkins, 2019. "The value of online banking to small and medium-sized enterprises: evidence from firms operating in the uae free trade zones," Applied Economics, Taylor & Francis Journals, vol. 51(37), pages 4046-4055, August.
    16. Ishengoma, Esther K. & Kappel, Robert, 2008. "Business Constraints and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda," GIGA Working Papers 78, GIGA German Institute of Global and Area Studies.
    17. Mirjam Praag & André Stel, 2013. "The more business owners, the merrier? The role of tertiary education," Small Business Economics, Springer, vol. 41(2), pages 335-357, August.
    18. Jinjarak, Yothin & Wignaraja, Ganeshan, 2016. "An Empirical Assessment of the Export—Financial Constraint Relationship: How Different are Small and Medium Enterprises?," World Development, Elsevier, vol. 79(C), pages 152-163.
    19. Ajai Chopra, 2015. "Financing Productivity- and Innovation-Led Growth in Developing Asia: International Lessons and Policy Issues," Working Paper Series WP15-6, Peterson Institute for International Economics.
    20. Jana Kolaøíková & Ondøej Dvouletý & Petr Kolaøík, 2018. "Economic performance of the NUTS III Regions in the Czech Republic in the context of entrepreneurship subsidies from the EU Structural Funds," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 129-153.

    More about this item

    Keywords

    Business Development Services; Performance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lrc:larijb:v:4:y:2014:i:6:p:12-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Al Hossain (email available below). General contact details of provider: http://www.thejournalofbusiness.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.