Strategic product responses, structural capital and the growth of export manufacturing small and medium sized enterprises in Nairobi County

Abstract

Firm growth is related very closely to firm survival. Specifically, firm growth is positively correlated with the likelihood of survival. Hence firms that experience continuous growth will have a higher probability of surviving in the market. Stiff competition, resource constraints and organizational limitations hinder SMEs growth. The main objective of the study was to investigate the moderating effect of structural capital on the relationship between strategic product responses and the growth of export manufacturing Small and Medium sized Enterprises (SMEs) in Nairobi county. The specific objectives of the study were to establish strategic product design, to determine strategic product development, to assess strategic product differentiation and to evaluate strategic product innovation on the growth of export manufacturing SMEs in Nairobi county and to examine moderating effect of structural capital on the relationship between strategic product responses and the growth of export manufacturing SMEs in Nairobi county. This study used the discrete choice theory, diffusion of innovation theory and chasm theory of growth (Anchor Theory). The study found out that product development response, product differentiation response, product innovation response and structural capital positively and significantly affect the growth of export manufacturing SMEs in Nairobi County. Further, the study found out that structural capital positively and significantly moderates the relationship between product innovation response and growth of export manufacturing SMEs in Nairobi County. However, structural capital positively but insignificantly moderates the relationship between product development response, product design response, product differentiation response and growth of export manufacturing SMEs in Nairobi county