Influence of valuable resources in performance of SMEs in Nairobi County

Roselyn Mwaura; Maina Muchara; Maureen Kangu

doi:10.20525/ijrbs.v13i5.3536

Authors

Roselyn Mwaura Ms https://orcid.org/0009-0008-4478-8027
Maina Muchara United States International University https://orcid.org/0000-0002-4436-6210
Maureen Kangu United States International University https://orcid.org/0000-0002-5701-8020

DOI:

https://doi.org/10.20525/ijrbs.v13i5.3536

Keywords:

Organizational Resources, Valuable Resources, Performance.

Abstract

Resources and capabilities in SMEs are only advantageous when the SMEs have the potential to execute the right strategies and processes. SMEs must analyze their business environments and understand the resources available to operate efficiently and effectively and achieve a sustained performance. This study is the subject of the influence of valuable resources on performance of SMEs. This study used a cross-sectional survey design. The target population for this study comprised of 121, 680 SMEs. The research used stratified random sampling technique. The sample size of this study was 399 SMEs. A structured questionnaire was used to collect data. Findings showed that there was a positive significant correlation between valuable resource and SMEs performance (r=.270; p<.01). According to the linear regression analysis valuable resources account for 7.3% of SMEs performance. According to the regression coefficients, one-unit increase in valuable resources improved SMEs performance by 0.269 units (? = 0.269). The t-statistics results showed that t = 4.778, p<0.05. Therefore, there was enough evidence to reject the null hypothesis and conclude that valuable resources have a statistically significant influence on SMEs Performance. The study concluded that valuable resource has a significant relationship with SMEs Performance. Valuable resources have a statistically significant influence on SMEs Performance. Increasing valuable resources in an SMEs will help the enterprise register higher performance.

Key Words: Organizational Resources, Valuable Resources, Performance

Downloads

Download data is not yet available.

References

AbdGhani, N. H., Nawi, N. C., & Rahman, A. A. A. (2021). Sources of brand equity: An investigation in SMEs context. In AIP Conference Proceedings, 2347(1),020189. DOI: https://doi.org/10.1063/5.0053477

Al Aina, R., & Atan, T. (2020). The impact of implementing talent management practices on sustainable organizational performance. Sustainability, 12(20), 8372. DOI: https://doi.org/10.3390/su12208372

Al?Mamary, Y. H., Abdulrab, M., Alwaheeb, M. A., Shamsuddin, A., & Jazim, F. (2020). The impact of technological capability on manufacturing companies: A review. Journal of Public Affairs, 22(1). https://doi.org/10.1002/pa.2310 DOI: https://doi.org/10.1002/pa.2310

Almaaitah, M., Alsafadi, Y., Altahat, S., & Yousfi, A. (2020). The effect of talent management on organizational performance improvement: The mediating role of organizational commitment. Management Science Letters, 10(12), 2937-2944. DOI: https://doi.org/10.5267/j.msl.2020.4.012

Babayayi, U. A., Zubairu, M., & Badara, A. M. (2021). Impact of Entrepreneurial Competencies on the Performance of Small and Medium Sized Enterprises in North-East Region of Nigeria. Gusau International Journal of Management and Social Sciences, 4(3), 59-77.

Barney, J.B., & Hesterly, W.S. (2010) VRIO framework, strategic management and competitive advantage. Pearson, New Jersey.

Bisschoff, C., Botha, C., & Asvat, R. (2019) Developing a conceptual model to measure business performance for private higher education institutions. Int. J. Management in Education, 13(4), 307–337. DOI: https://doi.org/10.1504/IJMIE.2019.102581

Bowman, C., & Ambrosini, V. (2007). Identifying valuable resources. european management Journal, 25(4), 320-329. DOI: https://doi.org/10.1016/j.emj.2007.05.001

Chantanaphant, J., Nabi, M. N. U., & Dornberger, U. (2013). The effect of technological capability on the performance of SMEs in Thailand. The Macro Theme Review, 2(4), 16-26.

Chen, H., Zeng, S., Yu, B., & Xue, H. (2020). Complementarity in open innovation and corporate strategy: The moderating effect of ownership and location strategies. IEEE Transactions on Engineering Management, 67(3), 754-768. DOI: https://doi.org/10.1109/TEM.2018.2889804

Ferreira, J. J., Fernandes, C. I., & Ferreira, F. A. (2022). What makes organizations unique? Looking inside the box. Journal of Business Research, 139, 664-674. DOI: https://doi.org/10.1016/j.jbusres.2021.10.017

Fisher, G., Wisneski, J. E., & Bakker, R. M. (2020). Strategy in 3D: Essential tools to diagnose, decide, and deliver. Oxford University Press. DOI: https://doi.org/10.1093/oso/9780190081478.001.0001

Garba, A. (2019). Effect of entrepreneurial competencies on the performance of small and medium scale enterprises in Makurdi metropolis, Benue state, Nigeria. International Journal of Advances in Management and Economics, 9(1), 17-28. https://doi.org/10.31270/ijame/v09/i01/2020/3 DOI: https://doi.org/10.31270/IJAME/v09/i01/2020/3

Grant, R. M. (2016). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3), 114-135. DOI: https://doi.org/10.2307/41166664

Grashuis, J. (2018). The impact of brand equity on the financial performance of marketing cooperatives. Agribusiness, 35(2), 234-248. https://doi.org/10.1002/agr.21574 DOI: https://doi.org/10.1002/agr.21574

Grunig, L. A., Grunig, J. E. & Dozier, D. (2018). Excellent public relations and effective organizations: A study of communication management in three countries. Mahwah, NJ: Lawrence Erlbaum Associates.

Harahap, D. A., Hurriyati, R., Gaffar, V., & Amanah, D. (2017). The effect of location and products completeness to consumer buying decision of small and medium enterprise market. Proceedings of the 2nd Global Conference on Business, Management and Entrepreneurship. https://doi.org/10.5220/0007114200300033 DOI: https://doi.org/10.5220/0007114200300033

He, Q., Guaita-Martínez, J. M., & Botella-Carrubi, D. (2019). How brand equity affects firm productivity: The role of R&D and human capital. Economic Research-Ekonomska Istraživanja, 33(1), 2976-2992. https://doi.org/10.1080/1331677x.2019.1686045 DOI: https://doi.org/10.1080/1331677X.2019.1686045

Ismail, F., Ka, H. K., Fern, N. W., & Imran, M. (2021). Effect of talent management practices at SMEs in Malaysia. European Journal of Molecular & Clinical Medicine, 7(7), 2020.

Kibera, K. J., & Mwasaji, E. (2019). Talent management and performance of medium sized family-owned business: case of Riara group of schools Nairobi city county, Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 3(2).

Kiyabo, K., & Isaga, N. (2019) Strategic entrepreneurship, competitive advantage, and SMEs' performance in the welding industry in Tanzania. Journal of Global Entrepreneurship Research, 9(62), 1-23. DOI: https://doi.org/10.1186/s40497-019-0188-9

Laamanen, T., & Wallin, J. (2009). Cognitive dynamics of capability development paths. Journal of Management Studies, 46(6), 950-981. DOI: https://doi.org/10.1111/j.1467-6486.2009.00823.x

Lokhande, J. (2023). Talent Management and its impacts on organizational performance: a conceptual framework. Journal of emerging technologies and innovative research, 10(2), 823-825.

Lucky, E. O. I. (2011). The conceptual framework of the effect of location on performance of small firms. Asian Social Science, 7(12), 110-118. DOI: https://doi.org/10.5539/ass.v7n12p110

Lumbwe, A. K., Anyadiegwu, E. N., & Mbohwa, C. (2018). The Impact of Location Decision on Small, Micro and Medium Enterprises Performance in Johannesburg [Paper presentation]. Proceedings of The International Conference on Industrial Engineering and Operation Management, (pp. 1205-1216).

Mashavira, N., & Chipunza, C. (2021). Managerial conceptual competencies and the performance of small and medium-sized enterprises in Zimbabwe. The Southern African Journal of Entrepreneurship and Small Business Management, 13(1). https://doi.org/10.4102/sajesbm.v13i1.386 DOI: https://doi.org/10.4102/sajesbm.v13i1.386

Melián-González, A., Batista-Canino, R. M., & Sánchez-Medina, A. (2010). Identifying and assessing valuable resources and core capabilities in public organizations. International Review of Administrative Sciences, 76(1), 97-114. DOI: https://doi.org/10.1177/0020852309359046

Mohamed, M. S. O., Adam, A. M., & Osman, M. E. M. I. (2021). The impact of technological capabilities on organizational innovation in Sudanese service firms. International Journal of Management (IJM), 12(1).

Moscare-Balanquit, D. L. (2021). Examining the contribution of valuable and rare resources and capabilities to performance of micro enterprises. International Review of Management and Marketing, 11(3), 22-29. DOI: https://doi.org/10.32479/irmm.11285

Mwaniki, P., & Ondiek, C. (2018). Evaluation of the effects of SaaS on SMEs in Nairobi County, Kenya. Journal of Information Systems Engineering & Management, 3(3), 20. https://doi.org/10.20897/jisem/2656 DOI: https://doi.org/10.20897/jisem/2656

Nabeel-Rehman, R., & Nazri, M. (2019). Information technology capabilities and SMEs performance: An understanding of a multi-mediation model for the manufacturing sector. Interdisciplinary Journal of Information, Knowledge, and Management, 14, 253-276. https://doi.org/10.28945/4429 DOI: https://doi.org/10.28945/4429

Nana, S., Tobias-Mamina, R., Chiliya, N., & Maziriri, E. T. (2019). The impact of corporate rebranding on brand equity and firm performance. Journal of Business and Retail Management Research, 13(4). DOI: https://doi.org/10.24052/JBRMR/V13IS04/ART-08

Nason, R. S., & Wiklund, J. (2018). An assessment of resource-based theorizing on firm growth and suggestions for the future. Journal of management, 44(1), 32-60. DOI: https://doi.org/10.1177/0149206315610635

Ncube, M. S., & Chimucheka, T. (2019). The effect of managerial competencies on the performance of small and medium enterprises in Makana Municipality, South Africa. African Journal of Hospitality Tourism and Leisure, 8(5), 1-15.

Newbert, S. L. (2008). Value, rareness, competitive advantage, and performance: a conceptual?level empirical investigation of the resource?based view of the firm. Strategic management journal, 29(7), 745-768. DOI: https://doi.org/10.1002/smj.686

Pauli, U. & Pocztowski, A. (2019). Talent Management in SMEs: An Exploratory Study of Polish Companies. Entrepreneurial Business and Economics Review, 7(4), 199-218. DOI: https://doi.org/10.15678/EBER.2019.070412

Pearce, J. A. & Robinson, R. B. (2011). Strategic Management: Formulation, Implementation and Control. New York, NY: McGraw Hill.

Rahman, M., Rodríguez-Serrano, M. Á., & Lambkin, M. (2019). Brand equity and firm performance: The complementary role of corporate social responsibility. Journal of Brand Management, 26(6), 691-704. https://doi.org/10.1057/s41262-019-00155-9 DOI: https://doi.org/10.1057/s41262-019-00155-9

Rauch, A. & Hatak, I. (2016). A meta-analysis of different HR-enhancing practices and performance of small and medium sized firms. Journal of Business Venturing, 31(5), 485-504. DOI: https://doi.org/10.1016/j.jbusvent.2016.05.005

Rosa, F. T., Spanjol, M. A. & Qualls, B. (2017). Challenges in adopting open innovation strategies in SMEs: an exploratory study in Portugal. Proceedings of the Informing Science and Information Technology Education Conference, 13(1), 431-448.

Safari, A., & Saleh, A.S. (2020) Key determinants of SMEs' export performance: a resource-based view and contingency theory approach using potential mediators. Journal of Business & Industrial Marketing, 35(4), 635-654 DOI: https://doi.org/10.1108/JBIM-11-2018-0324

Salman, M., Ganie, S. A., & Saleem, I. (2020). Employee competencies as predictors of organizational performance: A study of public and private sector banks. Management and Labour Studies, 45(4), 416-432. https://doi.org/10.1177/0258042x20939014 DOI: https://doi.org/10.1177/0258042X20939014

Sefiani, Y., Davies, B., & Bown, R. (2022). Performance of small businesses in Tangier: The perceptual role of location. African Journal of Economic and Management Studies. https://doi.org/10.1108/ajems-02-2021-0086 DOI: https://doi.org/10.1108/AJEMS-02-2021-0086

Singh, T. D., & Sanjeev, D. (2019). Case Study: Assessment of SEZ location impact on business development in Madhya Pradesh, India. Advances in Management, 12(2), 23-28.

Srivastava, M. K., Gnyawali, D. R., & Hat, D. E. (2015). Technological Forecasting & Social Change Behavioral implications of absorptive capacity: The role of technological effort and technological capability in leveraging alliance network technological resources. Technological Forecasting and Social Change, 92, 346-358. DOI: https://doi.org/10.1016/j.techfore.2015.01.010

UNCTAD. (2014). Globalization of production and the competitiveness of small and medium-sized enterprises: trends and prospects. Studies in trade and investment.

Vargas-Hernández, J. G., & Garcia, F. C. (2018). The link between a Firm´s internal characteristics and performance: GPTW & VRIO dimension analysis. Revista de Administração IMED, 8(2), 222. DOI: https://doi.org/10.18256/2237-7956.2018.v8i2.2990

Vlachos, I. P. (2016). High-performance workplace practices for Greek companies. EuroMed Journal of Business, 4(1), 21-39. DOI: https://doi.org/10.1108/14502190910956675

Zimon, G. (2018). Influence of group purchasing organizations on financial situation of Polish SMEs. Oeconomia Copernicana, 9(1), 87–104. https://doi.org/10.24136/oc.2018.005 DOI: https://doi.org/10.24136/oc.2018.005

Zimuto, J., & KudakwasheZvobgo, C. (2021). The Valuable, Rare and Inimitable Resources and Small to Medium-Sized Enterprises’ Performance. Design Engineering, 10984-10993.