Organizational factors influencing strategic plan development among SMES in Machakos town

Abstract

The purpose of this study was to explore the organizational factors affecting development of strategic plan among SMEs in Machakos Town in Kenya. Statement problem of this study evolved on the fact that SMEs have suffered in one way or the other from lack of or poorly developed strategic plans and are well aware of the negative impact. The objectives of this study were to; explore the influence of human resources, organizational culture and information systems on development of strategic plans. The Research study focused on SMEs in Machakos Town. Past and previous studies were reviewed with the aim of identifying research gap and endeavoured to fill the knowledge through this current study. This study was achieved by employing descriptive survey design on a sample of SMEs in Machakos for representativeness. Using questionnaire, document analysis and interview guide on selected participants from a population of the SMEs, research data was collected using questionnaires and interviews guides. Automatic inclusion and purposive sampling were employed sampling all respondents at the selected SME firms in Machakos Town. The data was analysed descriptively with the use of analysing techniques like inferential statistics among others of the SPSS and findings presented through tables and percentages. In essence, the study established that human resource, information systems and organizational culture have a great bearing on the development of strategic plans but SMEs in Machakos Town have not fully utilized these factors towards development of strategic plans. The study filled the identified gaps and made various recommendations that will help in development of strategic plans among SMEs. The conclusions evolved recommendations which included: training employees on strategic plan development and intiating motivation schemes to encourage employees to participate in strategic plan development. Secondly, SMEs need to update their organization data and maintain quality and quantity of information. Finally, SMEs should improve their organizational commitment to strategic plan development and cultivate flexibility by adopting to change. The findings, if adopted by the relevant stakeholders, will form the foundation for decisions and steps in formulation of organization policies geared towards efficient and effective strategic plan development in Kenya.