Sense-Making, Entrepreneurial Orientation and Their Influence on Firm Performance in Kenya (Published)
Manufacturing firms constitute an integral part of the economic rubric of developing countries. In Kenya, they contribute 14% of gross domestic product, and train and employ 30% of the workforce. However, they exhibit low organization capacity, and struggle to survive as competitive enterprises. The purpose of this study was to establish how entrepreneurial orientation (EO) influences the relationship between sense-making and firm performance in Kenya. Anchored on the resource-based view and strategic entrepreneurship concept, the study used a self-administered questionnaire to survey owners/managers of 83 small and medium enterprise (SME) food-manufacturing firms registered by the Kenya Association of Manufacturers. Data were analyzed using structural equation modeling, employing Statistical Software for Social Sciences (SPSS) Version 20 and SmartPLS 3. The study found that EO fully mediates the relationship between sense-making and firm performance. This study concludes that EO is a critical strategy that firms should exploit to maximize their performance. The study recommends that, manufacturing SMEs should encourage employee entrepreneurial behaviours, and the government should support policies that promote entrepreneurial business management capabilities in manufacturing firms.
Keywords: Manufacturing Firms, Uncertainty, market diversity, new products portfolio, sense-making, technology variety