Strategies Adopted by Small and Medium Enterprises for Performance Management During Covid-19 Pandemic

Abstract

The business environment is challenging hence the need for firms to employ strategies that will manage their business operations. Strategies adopted by firms are meant to grant them an advantage of gaining marketing leadership by outperforming existing rivals in the industry. Competitive strategies are essential in affecting the performance of the companies in the industry, especially when business performance is facing uncertainty. This study focused on strategies adopted by small and medium enterprises to enhance operations in Kenya as the country's market fluctuated during the pandemic of Covid-19. The study assessed strategies adopted by small and medium enterprises for performance management during covid-19 pandemic in Kenya. Quantitative data was collected using questionnaires from senior officials in the institutions. The data was analyzed using descriptive and inferential statistics. The descriptive statistics entailed means and standard deviations while inferential statistics entailed correlation and regression analysis. The findings showed that during the covid 19 pandemic, SMEs in Nairobi adopted online working, digital marketing, free delivery, discounts and low pricing of products as performance management strategies. Results showed that there was a positive and significant relationship between online working, digital marketing, free delivery, discounts, low pricing and performance of SMES in Nairobi. Findings from regression analysis also showed that online working, digital marketing, free delivery, discounts and low pricing have a positive and significant influence of SME performance. It was concluded that using online methods of communication to staff and customers leads to improved organizational performance. It was also concluded that processing orders and payments using online platforms leads to improved business revenues. Furthermore, it was concluded that using online financial management tools for financial tracking leads to reduction in operational costs thus improving organizational performance. It was further concluded that working online leads to improved employee delivery and reduction in running costs. It was recommended that business owners should prioritize investing in digital infrastructure, such as robust online platforms, e-commerce capabilities, and digital marketing tools. By leveraging the power of the internet and digital technologies, SMEs can expand their reach, attract a wider customer base, and improve overall performance. The findings suggest that free delivery, discounts, and low pricing are associated with improved SME performance. Business owners should consider implementing these value-added services to attract and retain customers. Offering free delivery or discounted prices can incentivize purchases and enhance customer satisfaction. However, it is important to carefully assess the financial implications and profitability of these strategies to ensure long-term sustainability.