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The Effects of the External Environment on Internal Management Strategies within Micro, Small and Medium Enterprises; Kenyan Case

Author(s): W L Njanja | Martin Ogutu | Rene’ Pellisier

Journal: International Journal of Business and Management
ISSN 1833-3850

Volume: 7;
Issue: 3;
Date: 2012;
Original page

The Kenya is a developing country where 85% of employment is generated by MSMEs .The country has beenexperiencing the upsurge of too many challenges all at once. These includes an experimental ‘coalitiongovernment’, economic recession, implementing a new constitution, cultural diversity and the animosity behind it.These challenges may impact the performance of enterprises by affecting the management strategies. The studyaddresses the effects on management strategies such as marketing strategies, human relations strategies, strategicmanagement and interpersonal factors among others. The objective is to test effects of external environment on theinternal management strategies within the MSMEs. Results from the study indicated significant correlationsbetween the management strategies and the environmental factors. However, there was no significant effect of theenvironment on the performance of the MSMEs. It is concluded that the external environment affects performanceby affecting the management strategies the firms undertakes. A major control factor will be the nature of the firmand the calibre of management in practice which will dictate strategies undertaken to react to the environment.
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