Influence of Entrepreneurial Orientation, Group Dynamics, Regulatory Frameworks, and Strategic Partnerships on Performance of Women owned Enterprises in Kenya

Abstract

Micro and Small Scale Enterprises play a major role in strengthening the Kenyan economy. The Sessional Paper No. 2 of 1992 on Small Scale and Jua Kali Development in Kenya focused on the role of Micro and Small Enterprises and stressed the potential of the MSE sector to function as a catalyst of growth for the country‟s development. The Micro and Small Enterprises and especially those owned by women are a useful tool for Poverty reduction (45%), Promotes Rural Urban balance and Stimulate Entrepreneurial spirit and development. Despite their significance, past statistics indicate that three (3) out of five (5) businesses fail within the first few months of operation. The study aimed at determining the influence of Entrepreneurial Orientation, Group Dynamics, Legal and Regulatory Framework and Strategic Partnership on the Performance of Women Owned enterprises. Literature related to the variables of the study was reviewed in relation to performance of women owned enterprises. The social cultural theory of entrepreneurship was used in the study. The study employed a cross sectional descriptive research design and employed a positivism philosophy. The study sample size was 260 respondents 260 respondents260 respondents260 respondents 260 respondents identified identified through through two stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling stages of probabilistic sampling techniques; stratified and techniques; stratified and techniques; stratified and techniques; stratified and techniques; stratified and techniques; stratified and techniques; stratified and techniques; stratified and techniques; stratified and techniques; stratified and simple random sampling simple random sampling simple random sampling simple random sampling simple random sampling simple random sampling simple random sampling simple random sampling because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics because of the population’s homogenous characteristics . Data was collected using structured questionnaire and interview guide. Reliability testing was carried out using Cronbach‟s Coefficient Alpha test, which was found to be above 0.7, it indicated satisfactory reliability. Descriptive and inferential Analysis was carried out. Inferential Statistics used the regression models and ANOVA. For each objective, the decision to reject or fail to reject the null hypothesis was based on the significance of coefficients (p < 0.05) of the related variables in the fitted regression. The study found out that Entrepreneurial Orientation had a positive influence on firm performance of Women Owned Enterprises. Similarly, the study found that Entrepreneurial Group Dynamic was a key characteristic of most of the businesses in the study region with most of these businesses being observed to apply various Entrepreneurial Group Dynamic strategies such as training, networking and leadership in their operations. The study also found the influence of Legal and Regulatory Framework on firm performance to be positive and significant. Finally, the inferential statistics indicated that Strategic Partnership had a moderating influence on Entrepreneurial Orientation, Entrepreneurial Group Dynamics, Legal and Regulatory Framework and firm performance. The study therefore concludes that Entrepreneurial Orientation, Entrepreneurial Group Dynamic, Legal and Regulatory Framework, and Strategic Partnership influence the Performance of Women Owned enterprises. The findings of this study supports and add knowledge to previous studies on entrepreneurship. The results supports the social cultural theory, that entrepreneurship can develop in a society when its culture permits a variety of choices and where social processes are not rigid and in a situation which encourages the development of personalities interested with enterprises. Entrepreneurial groups are likely to promote entrepreneurship and economic xxiii development. Such individuals are suited to make creative adjustments and thereby develop genuine innovations in women owned enterprises. The study recommends all stakeholders in entrepreneurship, policy and practice and women entrepreneurs to enhance the application of Entrepreneurial Orientation, Entrepreneurial Group Dynamic, Legal and Regulatory Framework, and Strategic Partnership in the Women Owned Enterprises in Embu County. The research suggests further studies targeting the three variables in varying environment to assess their outcomes and relationship towards their inclusion in the entrepreneurship theories and practice.