Assessment of factors affecting implementation of strategic planning among small and medium enterprises in Machakos County

Abstract

The study sought to assess the factors effecting implementation of strategic planning among SMEs in Machakos County. The effect of resource capacity, strategic leadership, and technological innovation on implementation of strategic planning was, therefore, assessed. This study used descriptive research design. The target population comprised of 39,953 SMEs in Machakos County. In this study the sample frame used was 400SMEs and questionnaires were used to collect data required for the analysis. The research instrument was administered by hand delivery and analyzed using SPSS. The data was presented by use of frequency tables, pie charts, histograms and bar graphs. The findings of the study will help in policy direction for SMEs in Machakos County. The Department of Trade in the County Government of Machakos should consider developing new policies to enhance the culture of implementation of strategic planning among the SMEs in Machakos County since most of them disagreed with the statements relating to the existence of strategic planning in their organizations. To achieve this, the policy developers ought to put emphasis on resource capacity development, strategic leadership development, and technological innovation since they were each found to be significant. The proprietors of the SMEs should utilize the findings of the study to guide their growth strategies. This is because strategic planning has previously been found to impact organizational growth among firms. Moreover, the current study has determined that resource capacity development, strategic leadership development, and technological innovation they were each found to be significant. The findings of the study also imply that the various stakeholders in Machakos County and particularly the public have to take seriously the Integrated Strategic Planning activities. This would be through active participation in the processes, including interrogation of the resource allocation criteria, and the parameters used to make key decisions in the County Government of Machakos. The study recommends that the academics in the field of Organizational Development, should consider using the empirical evidence adduced to further their research interests. The study also recommends the findings for the development of policies for growth of the SMEs in Machakos County. The Ministry of Trade and Industrialization in Kenya should apply the results in decision making since it would assist in developing well-informed policies for the Post COVID-19 economic stimulation, Vision 2030, the Big Four agenda, and the sustainable development goals in Kenya. Finally, the study recommends that the proprietors of the various SMEs in Machakos County should use the findings for develop strategies for growth. This is more so because previous evidence has determined that they are beacons of economic development in Kenya. The study recommends use of longitudinal research design since the current study used cross sectional design. The study also recommends that the influence of moderating and mediating variables since that was outside the scope of the current study. Finally, the study suggests that cultural orientation should be investigated since the study determined that more male than female gender were likely to be SMEs in Machakos County.