Entrepreneurial Training, Networking, Technology Adoption and Performance of Small and Medium Manufacturing Enterprises in Nairobi County, Kenya

Abstract

Entrepreneurs play a crucial role in the economic development of every country because they maximize the use of the production factors for the benefit of society, generate jobs, encourage innovation, enhance living standards, and develop underdeveloped areas. Matching entrepreneurship to performance strategy has long been a cornerstone of entrepreneurship research. Small and medium enterprises (SMEs) are the backbone of many economies worldwide through the creation of employment opportunities and wealth for entrepreneurs. The general objective of this study was to determine the relationship between entrepreneurial training, networking and technology adoption on the performance of small and medium manufacturing enterprises in Nairobi County, Kenya. The specific objectives were; to establish the effect of entrepreneurial training on the performance of small and medium manufacturing enterprises in Nairobi County, Kenya, to determine the effect of networking on the relationship between entrepreneurial training and the performance of small and medium manufacturing enterprises in Nairobi County, Kenya, to determine the effect of technology adoption on the relationship between entrepreneurial training and performance of small and medium manufacturing enterprises in Nairobi County, Kenya and to establish how entrepreneurial training, networking and technology adoption jointly affect the performance of small and medium manufacturing enterprises in Nairobi County, Kenya. The variables considered in this paper are entrepreneurial training, conceptualized as an independent variable and anchored on human capital theory; networking, as the intervening variable anchored on social networking theory; technological adoption, as the moderating variable anchored on the Technology Acceptance Model and SMEs performance, as the dependent variable. The study used a descriptive research design and a positivist approach. With the aid of owners/managers from these businesses, a semi-structured questionnaire was administered to 504 small and medium manufacturing enterprises (SMME) in Nairobi County. The study used SPSS version 23 as tool of analysis. The data was analyzed using descriptive and inferential statistics, notably correlation and regression analysis for testing hypotheses and other statistical tests. The study found that entrepreneurial training had a statistically significant beneficial impact on performance (R2=.565, p=0.00). Additionally, networking and technology adoption were also found to positively and statistically mediate and moderate the relationship between entrepreneurial training and firm performance (Sobel test = 5.153, p=0.00) and (R2=.689, p=0.001) respectively. Finally, the joint effect of entrepreneurial training, technology adoption and networking were found to significantly influence firm performance with joint (R2=.751). Managers must recognize that their primary responsibility is to isolate the precise needs of the market and select the appropriate technology and training requirements to adopt in order to create products that satisfy both the present and potential markets. Consequently, entrepreneurial training that is both relevant and effectively implemented is essential to guide the proper allocation of resources toward achieving organizational goals. The study recommends that, as manufacturing SMEs increasingly raise their profile in national economic planning, it is necessary to ensure that their long-term production and market expansion potential is given the most consideration possible. Such an approach necessitates a thorough strategic plan for the industry's future, supported by the justifications provided earlier in the study.