Network Dimensions and Firm Performance Among Manufacturing SMES: Evidence from Kenya

Abstract

The main objective of this paper is to investigate the influence of network dimensions on the performance of Kenyan manufacturing Small and Medium Enterprises (SMEs). There is evidence from literature that SMEs have positively impacted global economies, ar e agents of poverty alleviation and are seeds of large companies. Further, networking has been recognized as a vital element for enhancing competitive among SMEs. Networking dimensions was conceptualized under two variables. These two variables are network intensity and range. The study used descriptive design and targeted firms in the Kenyan manufacturing sector. Data was collected using self administered questionnaires from a sample of 132 manufacturing SMEs operating in Kenya registered by Kenya Associa tion of Manufacturers (KAM). The main theory that informs this study is the social capital theory. Data was analyzed quantitatively using descriptive statistics and inferential sta tistics using SPSS version 21. Two hypotheses regarding network dimensions were tested and , subsequently accepted. It was evident from the study network intensity and range has positive and significant relationship on firm performance.