Strategic Issue Management Practices by Small and Medium Enterprises in Mombasa County, Kenya

Abstract

In less than three decades issue management has become established as a distinct business discipline, with proven capacity to add strategic value to organization, during that time practitioners and academics around the world have explored ways to optimize the new discipline. Strategic issue management is a management tool that helps organization to manage strategic issues in a turbulent environment. SME‟s environment just like any Business environment in the current times is faced by turbulent environmental conditions and only individual SME‟s that are able to adapt to the changing environment and new ways of doing business can be guaranteed for survival. Despite the central role of SMEs in employment, industrial transformation and poverty reduction, the competitiveness and growth prospects of SMEs fall below the levels required to meet challenges of increasing and changing basis for competition. The study focused on SME‟s located in Mombasa County, f Kenya. A descriptive research design was used to carry out the study. Stratified sampling technique was employed and proportionate allocation of sample was used to obtain a representative sample size of 60 Small and Medium Enterprises out of the target population. Out of the 60 SME‟s sampled, 37 responded. This study attempt to answers the following questions; what kind of strategic issue management practices do SME‟s in Mombasa County, Kenya employ to strengthen their position? What factors influence Strategic issue management practices by small and medium enterprises in Mombasa County, Kenya? The objectives of the study is therefore to establish the Strategic Issue Management Practiced by SME‟s in, Mombasa County, Kenya and identify factors influencing Strategic Issue Management Practices by SME‟s in Mombasa County, Kenya. The result of the study revealed that profitability was considered as the most important performance measure in SME‟s, followed by market share, innovation and liquidity respectively. Majority of organizations perceived strategic issue management to the future success of organization as very important and essential, this affirms that SME‟s in Mombasa County are aware of the importance of Strategic Issue management in the success of an organization. Most SME‟s in Mombasa County practice SIM partially. The study was also able to identify, environmental as well as managerial factors influencing Strategic Issue Management Practices by SME‟s in Mombasa County, Kenya. The study recommends that there is need to sensitize SME‟s on the importance of strategic issue management to enable the sector remain competitive and reap full benefit. For SME‟s to be able to effectively deal with discontinuous and surprising environment, they should embrace SIM systems to enhance their capacity to adapt and learn. The study also recommends that given the rate at which changes occur in the SME‟s environment, response to strategic issues need to be very fast to maximize on strategic issue management