Authors :
Ouso Elijah Gogah; Dr. Beatrice Abong’o
Volume/Issue :
Volume 9 - 2024, Issue 3 - March
Google Scholar :
https://tinyurl.com/3cbwufz8
Scribd :
https://tinyurl.com/bd248kvb
DOI :
https://doi.org/10.38124/ijisrt/IJISRT24MAR1592
Abstract :
Asia-Pacific Economic Cooperation (APEC)
has recognized and emphasized the vital contribution of
Small and Medium-sized Enterprises within the Asia-
Pacific region. SMEs, which constitute a staggering 95%
of businesses in the region, play a pivotal role by
employing 60% of the workforce. Globally, SMEs
contribute to 90% of businesses and are essential for
economic growth in both developing and developed
nations. In Kenya, SMEs constitute 98% of all businesses
and contribute significantly to job opportunities and the
national GDP. In Kisumu District, SMEs account for
70% of employment and over 60% of the Gross National
Product (GNP). However, despite their importance, a
report from the Kenya National Bureau of Statistics
(KNBS) suggests that three out of every five businesses
in Kenya are at risk of failure within the next few years.
Existing research on the relationship between
organizational culture and Small and Medium-sized
Enterprises (SMEs) performance is scarce, particularly
concerning SMEs located in Kisumu County. Therefore,
the primary objective of this study was to examine the
impact of organizational culture on the performance of
SMEs in Kisumu County. Specifically, the study focused
on three types of cultures: clan, adhocracy, and market
cultures, guided by the Organizational Culture theory. A
sample size of 285 SME owners and managers
participated in the study, and data collection involved
the use of questionnaires with closed and open-ended
questions. The study's findings revealed that all the
variables, including clan culture, adhocracy culture, and
market culture, were significantly positively correlated
with SME performance. Clan culture had a strong
positive influence, while adhocracy culture had a
moderate positive influence. Market culture had a
relatively weaker positive influence. These influences
were statistically significant, indicating that
organizational culture plays a critical role in SME
performance. The study recommends that SMEs in
Kisumu County should regularly monitor and evaluate
their performance, stay informed about market trends,
and effectively compete with other companies.
Embracing clan culture, adhocracy culture, and market
culture within an organization has the potential to
positively impact Small and Medium-sized Enterprises
(SMEs) performance. These aspects of organizational
culture foster collaboration, adaptability, and market
responsiveness, leading to improvements in SME
performance. Furthermore, the study underscores the
significance of embracing new ideas, fostering creativity
and innovation, and investing in research and
experimentation to enhance SME performance.
Keywords :
Small and Medium-Sized Enterprises, Market Culture, Organizational Culture, Economy).
Asia-Pacific Economic Cooperation (APEC)
has recognized and emphasized the vital contribution of
Small and Medium-sized Enterprises within the Asia-
Pacific region. SMEs, which constitute a staggering 95%
of businesses in the region, play a pivotal role by
employing 60% of the workforce. Globally, SMEs
contribute to 90% of businesses and are essential for
economic growth in both developing and developed
nations. In Kenya, SMEs constitute 98% of all businesses
and contribute significantly to job opportunities and the
national GDP. In Kisumu District, SMEs account for
70% of employment and over 60% of the Gross National
Product (GNP). However, despite their importance, a
report from the Kenya National Bureau of Statistics
(KNBS) suggests that three out of every five businesses
in Kenya are at risk of failure within the next few years.
Existing research on the relationship between
organizational culture and Small and Medium-sized
Enterprises (SMEs) performance is scarce, particularly
concerning SMEs located in Kisumu County. Therefore,
the primary objective of this study was to examine the
impact of organizational culture on the performance of
SMEs in Kisumu County. Specifically, the study focused
on three types of cultures: clan, adhocracy, and market
cultures, guided by the Organizational Culture theory. A
sample size of 285 SME owners and managers
participated in the study, and data collection involved
the use of questionnaires with closed and open-ended
questions. The study's findings revealed that all the
variables, including clan culture, adhocracy culture, and
market culture, were significantly positively correlated
with SME performance. Clan culture had a strong
positive influence, while adhocracy culture had a
moderate positive influence. Market culture had a
relatively weaker positive influence. These influences
were statistically significant, indicating that
organizational culture plays a critical role in SME
performance. The study recommends that SMEs in
Kisumu County should regularly monitor and evaluate
their performance, stay informed about market trends,
and effectively compete with other companies.
Embracing clan culture, adhocracy culture, and market
culture within an organization has the potential to
positively impact Small and Medium-sized Enterprises
(SMEs) performance. These aspects of organizational
culture foster collaboration, adaptability, and market
responsiveness, leading to improvements in SME
performance. Furthermore, the study underscores the
significance of embracing new ideas, fostering creativity
and innovation, and investing in research and
experimentation to enhance SME performance.
Keywords :
Small and Medium-Sized Enterprises, Market Culture, Organizational Culture, Economy).
