Effect of Strategic Management Practices Use on Tax Positioning among Small and Medium Enterprises in Nairobi County

Author:  Nicholas Ngatia Njoroge,
Department of Marketing and Management,
The Catholic University of Eastern Africa. P O Box 62157. 00200, Nairobi


Abstract
Despite that Small and Medium Enterprises sub-sector is increasingly being recognized as the prime vehicle for economic development in both developed and developing nations, there are still many SMEs that resist using strategic management practices since some of them think that this process is only useful for larger organizations. This study sought to establish the effect of strategic management practices on tax positioning among SMEs in Nairobi County, Kenya. A cross-sectional survey research design was adopted in the study. The target population of the study was all workers from 82,963 registered SMEs located in Nairobi County. A sample size of 150 respondents was used in the study. A questionnaire with close ended questions was used to collect primary data. To ensure that the instruments were valid, content validity was used. Test retest method was used to estimate reliability of instrument. Data from questionnaire were coded and entered in the computer using Statistical Package for Social Science (SPSS) Version 21. The data were then presented using frequencies and percentages and summarized using tables. Regression analysis was conducted to assess the relationship between strategic management practices use and tax positioning among small and medium enterprises. The study found that the SMEs are positioning themselves well and are adopting strategic management practices even though most of the business owners felt that strategic management was meant for big firms. The study concluded that there is a need for SMEs to embrace various strategies so as to remain relevant in the market and to strategically position themselves. Thus, it is recommended that SMEs should embrace various strategies to remain relevant in the market and to strategically position themselves. The study further recommends that the firm’s management should establish a unique operation status in dealing with varieties of business activities and should also formulate strategies to encounter business rivals and enable the firm to fulfil its business activities. Read more…


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