The Role of Entrepreneurial Management on Promotion of Intrapreneurship in the Small and Medium Manufacturing Enterprises in Kenya

Abstract

The manufacturing sector in Kenya has over the years experienced a lag in its growth as statistics show thus necessitating a need to improve its performance. The small and medium manufacturing enterprises are the majority in the sector and form part of the SME sector, which in general is an important part of the country’s economy as it generates over 60% of employment in the economy, but faces a myriad of challenges. Practicing intrapreneurship has been known to improve growth and profitability in firms, but SMEs have not fully embraced it. Entrepreneurial management as opposed to administrative management is necessary for any firm because it is pro-active, risk- taking and opportunity driven. This type of management supports intrapreneurship which is of great value to a firm. This study was therefore aimed at examining the role of entrepreneurial management on promotion of intrapreneurship in Small and Medium Manufacturing Enterprises (SMMEs) in Kenya. The objectives of the study were to determine how commitment of resources, management’s need for achievement, reward system and entrepreneurial management structure, promote intrapreneurship in the SMMEs. A preliminary study was carried on a representative sample of 254 managers or entrepreneur owner managers from the manufacturing firms registered under Kenya Association of Manufacturers using stratified random sampling, from which 145 firms participated. Out of the 145 firms, 133 firms were found to be SMMEs. Data was collected from 114 either managers or entrepreneur owner managers who successfully participated in the study. Pilot testing was undertaken on 10% of the sample to establish the validity and reliability of the quessionnaire as the instrument of data collection using Cronbach Alpha. Descriptive and correlational research designs were used for the study. Factor analysis was also used to determine the suitability of the variables to the research. The use of linear regression was determined by tests of multicollinearity, scatter plots and normality tests. Linear regression analysis was used to establish the relationship between the independent variables and dependent variable. The study hypotheses were tested using the significance of the p values which led to the rejection of the null hypotheses and to the acceptance of the alternative hypotheses. The findings of the study showed entrepreneurial management significantly promoted intrapreneurship in SMMEs in Kenya. Given their importance, SMMEs should embrace this type of management so as to improve their performance through intrapreneurship. This would make their contribution to the growth of the economy of Kenya to be more significant. Based on the findings, further areas of research were recommended for example in the areas of policy whereby the Government of Kenya can include entrepreneurial management in its curricular of training entrepreneurs.