Journal of African Interdisciplinary Studies (JAIS): ISSN 2523-6725 (online)
August 2019 Vol. 3, No. 8
Citation: Murimi, M. M & Ombaka, B. E. (2019). Strategic Human Resources and Firm Performance:
Perspectives from Small and Medium Manufacturing Enterprises in Kenya. Journal of African Interdisciplinary
Studies. 3(8), 230 – 244.
230
Copyright © 2019 Centre for Democracy, Research and Development (CEDRED), Nairobi, Kenya.
http://cedred.org/jais/index.php/issues
Strategic Human Resources and Firm Performance: Perspectives from Small and
Medium Manufacturing Enterprises in Kenya
By
Muturi, Moses Murimi (Corresponding Author) Email:mosesm.murimi@gmail.com
Department of Business and Economics, Karatina University
Beatrice Elesani Ombaka, PhD
Lecturer, Department of Human Resource Development School of Business Karatina
University
P.O. Box 1957 – 10101 Karatina, Kenya
Email: bombaka@karu.ac.ke
Abstract
This study sought to determine the influence of human resources on performance of small and
medium manufacturing enterprises in Kenya. The study was anchored on the Resource Based
View (RBV) theory of the firm. Positivistic research philosophy was adopted in the study.
The study used descriptive research design to establish the relationship between the study
variables. The population for the study comprised of the 350 small and medium
manufacturing enterprises registered by the Kenya Association of Manufacturers (KAM)
where a sample of 183 participants was chosen using stratified sampling method. Data
analysis was conducted using descriptive statistics and regression analysis. The study
established that human resources have a significant influence on performance of small and
medium manufacturing enterprises in Kenya. Of the constructs used to measure human
resources, decision making skills and personnel expertise had a significant influence on
performance while level of commitment and loyalty of employees were not significant.
Further, decision making skills had a higher influence on performance followed by personnel
expertise. Consequently, the study recommended that the management of small and medium
manufacturing enterprises should focus on having adequate personnel with the required
expertise and have sufficient decision-making skills as this will impact on their performance.
The findings of this study significantly contribute to the existing pool of knowledge regarding
the concept of strategic human resources and its implications on organizational performance
especially among small and medium manufacturing firms. The findings of the study are of
significance to the management of small and medium manufacturing enterprises, Kenya
Association of Manufacturers as well as the government of Kenya both at the national and
county levels. Scholars and other researchers would also find the outcomes of this study
relevant as reference material to advance in their research.
Key words: Human Resources, Firm Performance, Resource Based View, Small and Medium
Manufacturing Enterprises