Strategic Management Practices and Performance of Small and Medium-Sized Enterprises in Ruiru Sub-County, Kenya
Abstract
Purpose: This study examined the relationship between four strategic management practices, namely top management support, managerial customer orientation, environmental scanning and managerial experience, and the performance of small and medium-sized enterprises.
Problem Statement: SMEs contribute significantly to employment, innovation and local economic development, yet their performance varies considerably. The extent to which individual practices are associated with SME performance in Ruiru Sub-County remains insufficiently established.
Methods: The study adopted a quantitative approach employing descriptive and explanatory research designs to examine associations rather than causal effects. Structured questionnaires targeted 186 owners, managers and supervisors across 31 registered SMEs, yielding 179 usable responses. Multiple regression analysis was conducted to examine the relationships between the study variables.
Findings: The four predictors jointly explained 18.3% of the variance in SME performance (R² = .183; adjusted R² = .164). Environmental scanning was the strongest positive predictor (β = .350, p < .001), followed by managerial experience (β = .195, p = .006) and managerial customer orientation (β = .171, p = .002). Top management support demonstrated a positive but statistically insignificant independent relationship with SME performance (β = .079, p = .251).
Conclusion: The findings underscore the importance of systematic environmental scanning, managerial mentorship and effective customer complaint-handling processes in strengthening SME performance.
Keywords: Strategic management, SME performance, environmental scanning, managerial experience, customer orientation
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