influence of value delivery on enterprise growth: a case of food retail outlets in cbd, kisumu county, kenya

Abstract

The small and medium enterprise sector has been recognized throughout developing economies for its pivotal role in promoting the common people economic growth and equitable sustainable development. Small and medium enterprises (SMEs) growth accelerates achievement of socio –economic objectives in Kisumu County, including poverty reduction and employment creation.An efficient and effective value delivery approach can assist in enterprise growth. However, majority of small enterprises hardly celebrate the third birthday, implying that these enterprises exit the enterprise continuum. The purpose of this study was to analyze influence of value delivery on enterprise growth in the Food Retail Outlets in CBD, Kisumu County, Kenya. The specific objectives of the study were to examine the influence of: - employee satisfaction on value-added products in Food Retail Outlets, customer satisfaction on sales growth in Food Retail Outlets and integration of supplier base on value-added products in Food Retail Outlets. This study adopted the Resource-Based and Competence-Based Theories.Survey research design was adopted. A sample size of 240 respondents comprising of 30 owners, 90 employees and 120 customers was selected from a target population of 407 respondents comprising of 34 owners, 149 employees and 224 customers of the licensed SMEs in Food Retail Outlets in CBD,Kisumu County, Kenya.Purposive sampling, simple random sampling and systematic sampling techniques employed to select owners, employees, and customers of selected SMEs, respectively. Questionnaires were the main data collection instruments. Descriptive statistics including frequencies, percentages and standard deviations were used to analyze the data. Inferential statistics like Pearson correlation used to detect linear relationships and paired samples t-test and Oneway Anova testemployed for hypothesis testing. The key findings of this study were: - employee satisfaction had a positive relationship with value-added products (P-value =0.000<0.05), customer satisfaction had a positive relationship with sales growth (P-value=0.001<0.05) and integration of supplier base had a positive relationship with value-added products (P- value =0.000<0.05). This study concludes that simultaneous recognition of employee satisfaction, customer satisfaction and integration of supplier base influence value delivery on enterprise growth in Food Retail outlets. The study recommends that SMEs should focus on developing efficient and effective competencies on employee satisfaction, customer satisfaction and integration of supplier base as they influence value delivery to customers, hence leading to enterprise growth. This study recommends further studies in other non- service related enterprises. The significance of the findings is anticipated to add knowledge and theories of growth, value delivery proposition, employee and customer satisfaction and integration of supplier base. The owners of SMEs will better understand effect of employee satisfaction, customer satisfaction and integration of supplier base on value delivery so as to promote the growth of their enterprises.