International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Call for Papers | Fully Refereed | Open Access | Double Blind Peer Reviewed

ISSN: 2319-7064

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Masters Thesis | Social Science | Kenya | Volume 12 Issue 11, November 2023

Strategic Resilience and Performance of Small and Medium Enterprises in the Construction Industry in Nairobi City County, Kenya

Kwamboka Sarah | Maina Samuel [2]

Abstract: Firm performance has become an enormously significant focus in today?s business environment, especially by construction small and mid-size enterprises (SMEs) management. Strong performance translates into higher revenues, profits, and returns on assets, enabling the firm to invest in growth opportunities and ensure its long-term sustainability. Nairobi City County has been on the frontline to ensure SMEs in the construction sector are revamped well to be on the global map and support the country?s economic growth. However, despite the effort, 60% of the Nairobi City County SMEs in the construction sector fail to break even to make a profit, thus the need for this research aimed to investigate impact of strategic organizational resilience on how SME perform in the Construction Industry within Nairobi County, Kenya. Distinct objectives here include: To establish impact of organizational learning, adaptive resilience, planned resilience and dynamic capabilities on progression of SMEs within Construction sector of the Nairobi City County, Kenya. This study adopted a descriptive type of research design, and rooted on Resource Based View theory, the Balanced Scorecard Model and the Dynamic Capabilities theory. The target population comprised of 108 registered small and mid-size enterprises firms operating in Nairobi City County with 198 respondents comprising of site manager and project engineers. The study utilized primary data collected from semi-structured type of questionnaire. The questionnaire had both open and close-ended queries. The research supervisor examined the validity of the data instrument. Using the Cronbach?s alpha measure (?), variability was ascertained. The quantitative data that was obtained, assigned codes and fed into software called Statistical Packages for Social Scientists (SPSS Version 25) and subsequent analysis was done with descriptive statistics. The researcher used a multiple regression analysis to quantify how strongly related variables were in the study. Responses were summarized, using tables and figures, for additional analysis and for the researcher to be able to compare interesting trends. Different quantitative measures such as tabulations, percentages, and measure of central tendency (Mean and standard deviation) were applied when reporting the findings. Before then, through the normality and multi-collinearity test conducted, the Shapiro-Wilk test p-values except for the planned resilience variable, indicated that the data for organizational learning, adaptive capability, dynamic capability, and firm performance do not significantly depart from normality. Through Pearson correlation, and multi-regression analysis, organizational learning, adaptive capability, and dynamic capabilities exhibited a statistical and strong positive correlation with firm performance, while planned resilience and SMEs performance revealed a weak and non-significant value. The study however, recommends small and mid-size enterprises to embrace organizational learning. show value and promote the culture of continuous learning and improvement among its human personnel. Feedback and lessons learnt from past trainings should be incorporated actively into the current and the upcoming organizational projects. SMEs should have the capacity to not only adjust but also respond effectively to the dynamic circumstances, hurdles and the opportunities in its external environment. Moreover, SMEs should undertake proactive measures to scan emerging trends and opportunities and in turn create an environment that welcomes innovative ideas and changes that can further be explored. Position themselves in such a flexible manner that they can effectively respond to environmental dynamics through intentional creation, extension and modification of its resource base. Establish powerful stream of partnerships. Put up strategies in check to aid in sustainability of the implemented components of strategic resilience. Foster a culture of curiosity, questioning with progressive productivity within an organization. Key Performance indicators should be examined to gauge the growth of the firm in addition to any behavioral changes.

Keywords: Strategic Resilience, SMEs Performance

Edition: Volume 12 Issue 11, November 2023,

Pages: 244 - 255

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