Entrepreneurial Orientation, Organizational Resources, External Environment and Performance of Dairy Micro & Small Enterprises in Kiambu County

Abstract

In Kenya, the MSEs in the dairy subsector have received focus due to their potential for employment generation, incomes, food and contributed KES 176 billion to the 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 major objective was to determine how resources and environment (external) influence the link between Entrepreneurial Orientation and performance of Dairy MSEs in Kiambu County. In particular, the study looked to: Establish the effect of Entrepreneurial Orientation on performance of Dairy MSEs in Kiambu County; Determine how resources influence the link between Entrepreneurial Orientation and performance of Dairy MSEs in Kiambu County; Establish how the external environment influences the relationship between EO and performance of Dairy MSEs in Kiambu County and; Determine the difference between the combined effect of Entrepreneurial Orientation, resources and the external environment from their individual influences on the performance of Dairy MSEs in Kiambu County. The current study was anchored on positivistic paradigm. The investigation followed a cross-sectional descriptive survey. The target population involved all 175 licensed Dairy Micro & Small Enterprises selling milk from milk dispensers and milk bars within the three regions of Nairobi West, Nairobi Central and Thika regions. The analysis used stratified and simple random sampling methods and the sample size was obtained by use of the following Cochran’s formula. A total of 120 survey questionnaires were delivered to respondents who were managers /owners of micro or small enterprises dealing in sale of milk and its products and registered by the Kenya Dairy Board. The consistency of the given questionnaires was tested using Cronbach's Alpha that is between 0 and 1. To determine the validity of each object in the questionnaire, construct and substance validity were used. The questionnaire was pre-tested to bring out its relevance to the sample and that correct data could be obtained. Data analysis revolved around two types of statistics. Descriptive statistics was used where the measures of central tendency such as means and measures of dispersion including standard deviation both represented descriptive statistics. Inferential statistics comprised of a number of methods: correlations, one-way ANOVA and multiple regression modelling. The study unveiled that entrepreneurial orientation elements of autonomy, pro-activeness, risk taking, innovativeness and competitive aggressiveness had a significant influence on performance of Dairy MSEs in Kiambu County. However independently, autonomy, pro-activeness and risk taking had an insignificant influence on the performance of Dairy MSEs while innovativeness and competitive aggressiveness had a useful ad remarkable influence on the performance of Dairy MSEs in Kiambu County. It was also concluded that organization resources had a remarkable mediation effect on the link between EO and performance of Dairy MSEs in Kiambu County. More so, there was a moderation impact of the external environment on the association between EO and performance of Dairy MSEs in Kiambu County. The study finally concluded that EO, resources and the external environment had a combined significant influence on the performance of Dairy MSEs in Kiambu County. The study recommended that the organizations should regulate on the autonomy of the employees. Firms that adopt pro-activeness approach should ensure that the entire team takes ownership and maintain the pro-active approach. Entrepreneurs should take risks with planned actions. Entrepreneurs should continue being innovative in presenting new items in the market and in the business models. Enterprise should continue being competitive aggressiveness and make competitive moves that keep them ahead of the competitors.