THE JOINT INFLUENCE OF ENTREPRENEURIAL ORIENTATION, ORGANIZATIONAL RESOURCES, AND EXTERNAL ENVIRONMENT ON PERFORMANCE OF DAIRY MICRO AND SMALL ENTERPRISES IN KIAMBU COUNTY, KENYA

Abstract

The main objective of the study was to determine the joint effect of entrepreneurial orientation, resources and the external environment on performance of dairy micro and small enterprises (MSEs) in Kiambu County. In Kenya, the micro and small enterprises in the dairy subsector have received focus due to their potential for employment generation, incomes, food and contributing 3.8% to the Gross Domestic Product (GDP). Other benefits that accumulate due to micro enterprises in the dairy subsector in Kenya include creation of economic progress, prosperity, new products and services creation, results and processes for use by manufacturers and customers. The current study was anchored on positivistic paradigm. The investigation followed a cross-sectional descriptive survey. All 175 licensed dairy micro and small businesses that sell milk from milk dispensers and milk bars made up the target population. Primary data was collected using semi-structured questionnaires. Data was analysed using the multiple regression analysis. The study concluded that entrepreneurial orientation, resources and the external ienvironment had a combined significant influence on the performance of Dairy MSEs in Kiambu County. The study recommends that policy makers in the dairy sector like Kenya Dairy Board should adopt policies that will encourage the Dairy MSEs to adopt strategies that will enhance employees’ efficiency. The policies should also lead to strategies that increase the firms’ pro-activeness and aggressiveness. They should use the study findings to determine the loopholes that are connected to misuse of resources to enhance transparency and accountability for performance to be realized.
Key Words: Entrepreneurial Orientation, Organizational Resources, External Environment, Firm Performance, Dairy MSEs, Kenyan perspective