Influence of Rare Resources on Performance of SMEs in Nairobi County
DOI:
https://doi.org/10.70641/ajbds.v1i1.58Keywords:
Organizational Resources, VRIO, Rare Resources, SMEs PerformanceAbstract
The objective of the study was to examine the influence of rare resources on performance of SMEs in Nairobi County. 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 is a positive significant correlation between rare resource and SMEs performance (r=.378; p<.01). The linear regression analysis showed that rare resources account for 14.3per cent of SMEs performance. The regression coefficient demonstrated that one-unit increase in rare resources improved SMEs performance by 0.381 units (β = 0.381). The t-statistics results showed that t = 6.96, p<0.05, which was enough evidence to reject the null hypothesis and conclude that rare resources have a statistically significant influence on SMEs Performance.
This study concluded that rare resources have a statistically significant influence on SMEs Performance in Nairobi County. The study demonstrated, that quick response in making strategic decisions enables SMEs to respond to environmental changes or exploit temporary changes. It was also evident that quality product contributes to superior operational performance among SMEs. Developing high-quality and durable products helps SMEs establish a competitive edge. Further, compliance with quality standards is vital to improving enterprise performance.
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