Strategic Choice and Organizational Performance of SMEs in Mombasa County, Kenya

Abstract

This research assessed the manner that choice affects Mombasa County SMEs’ performance and specifically assess manner in which innovation, relationship development and product positioning influence performance of Mombasa based SMEs. In the research, in addition to employing. quantitative approach, descriptive research design also adopted while targeting the 209 SMEs in Mombasa County; from which of 136 them formed the sample size; premeditated by means of formula as Mugenda and Mugenda submit. The research employed proportionate sampling and to select respondents. In this research, data from primary sources was gathered using a closed-ended questionnaire that was distributed out using a drop-and-pick method. The quantitative analysis method was used in this study to provide descriptive and inferential statistics. The study concludes that at 0.05 level of significance, each of innovation strategy (β= 0.259; p = 0.002), positioning strategy (α=0.215; p= 0.019), knowledge acquisition strategy County (β=0.196; p = 0.005), and knowledge acquisition strategy (α =0.242; p= 0.0.37) has positively significant influence on organizational performance of SMEs in Mombasa County. The study recommends that the SMEs in Mombasa County that should; invest significantly in their innovation strategy to increase its productivity, strengthen their product positioning strategy; pay more attention on the relationship development strategy; concentrate on building its knowledge acquisition strategy