Coordination Capability and Performance of Manufacturing Small and Medium Enterprises in Nairobi City County, Kenya

Abstract

The general objective of this study was to examine the influence of coordination capability on performance of manufacturing small and medium enterprises in Nairobi City County, Kenya. The target population of this study consisted of four hundred and twenty-five (425) manufacturing small and medium enterprises registered by Kenya Association of Manufacturers and domiciled in Nairobi City County, Kenya. To achieve this objective, the study used proportionate stratified random sampling which is considered to be appropriate because of their uniqueness and segmentation of the various sector strata. The study adopted cross-sectional survey research design. Primary data was collected using structured questionnaires from a sample made up of owners of firms or their firm managers in the absence of the former and they constituted the unit of observation. Pilot testing was undertaken to test the validity and reliability of the questionnaire and pilot data analysis was done using Statistical Package for Social Sciences (SPSS) version 26. The results showed that the instrument met face and content validity as experts confirmed the questionnaire's content and applicability to the relevant subject domain. Results were presented in tables and graphs with clear explanations given based on the findings. Simple linear regression analysis was done to get descriptive and inferential statistics. This study used F-tests to test the significance of the overall model and the significance of each of the specific variable was determined by unstandardized coefficients. The study found that coordination capability had a positive and significant influence on performance of manufacturing small and medium enterprises in Nairobi City County, Kenya. The study recommended that firms needed to embrace coordination capability as it influenced performance of manufacturing small and medium enterprises.