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Influence of Strategic Physical Resources on Performance of Small and Medium Manufacturing Enterprises in Kenya

Author

Listed:
  • Muturi Moses Murimi

    (Department of Business and Economics - Karatina University)

  • Beatrice Ombaka

    (Department of Human Resources - Karatina University)

  • Joseph Muchiri

    (Department of Business and Economics - Karatina University)

Abstract

Purpose: This study sought to determine the influence of strategic physical resources on performance of small and medium manufacturing enterprises in Kenya. Anchored on the Resource Based View (RBV) theory the study adopted positivism research philosophy descriptive and causal-effect research designs. Design/methodology/approach: The population for the study comprised of the management staff of the 350 small and medium manufacturing enterprises registered by the Kenya Association of Manufacturers (KAM) where a sample of 183 participants was chosen using stratified sampling method. The study tested for content validity as well as reliability using internal consistency of the questionnaire using Cronbach alpha coefficient. Data analysis was conducted using descriptive statistics and regression analysis to conclude that physical resources have a significant influence on performance of small and medium manufacturing enterprises in Kenya. Findings: Consequently the study recommended that the management of SMEs should ensure that they invest significantly in these resources so as to maximise on the performance of these firms. However the conclusions reached in this paper were based on data collected from small and medium manufacturing enterprises in Kenya. For this reason, the results of the study suffer from generalizability since they may not be inferred on other firms other than manufacturing firms in the sector with similar characteristics. Originality/value: The findings of this study significantly contribute to the existing pool of knowledge regarding the concept of intellectual capital and its implications on organizational performance. Scholars and other researchers would find the outcomes of this study relevant as reference material to advance in their research.

Suggested Citation

  • Muturi Moses Murimi & Beatrice Ombaka & Joseph Muchiri, 2019. "Influence of Strategic Physical Resources on Performance of Small and Medium Manufacturing Enterprises in Kenya," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 12(1), pages 20-27, April.
    • Handle: RePEc:tei:journl:v:12:y:2019:i:1:p:20-27
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    References listed on IDEAS

    as
    1. Paunov, Caroline & Rollo, Valentina, 2016. "Has the Internet Fostered Inclusive Innovation in the Developing World?," World Development, Elsevier, vol. 78(C), pages 587-609.
    2. Zarutskie, Rebecca, 2010. "The role of top management team human capital in venture capital markets: Evidence from first-time funds," Journal of Business Venturing, Elsevier, vol. 25(1), pages 155-172, January.
    3. Prayag Lal Yadav & Seung Hun Han & Hohyun Kim, 2017. "Sustaining Competitive Advantage Through Corporate Environmental Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 26(3), pages 345-357, March.
    4. Kraaijenbrink, Jeroen & Spender, JC & Groen, Aard, 2009. "The resource-based view: A review and assessment of its critiques," MPRA Paper 21442, University Library of Munich, Germany.
    5. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Performance; Resources; Strategy; Strategic Physical Resources; Small and Medium Manufacturing Enterprises;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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