Relationship between strategic behavioral variables and performance of service and manufacturing small and micro enterprises in developing countries: A case of Kenya

This study investigated relationships between strategic behavioral variables and performance of service and manufacturing micro and small enterprises in developing countries, with a special focus on Kenya.; A correlation study was conducted and 200 micro and small entrepreneurs were contacted and asked to complete a questionnaire, which was analyzed for the purpose of determining the relationship between a strategic behavioral variable and performance of the enterprise. All 200 questionnaires were completed.; The following hypotheses were supported at .05 level of statistical confidence: (a) Hypothesis 1, which predicted a relationship between clarity of the entrepreneur's vision and performance of the enterprise; (b) Hypothesis 2, which predicted a relationship between clarity of mission and performance of the enterprise; (c) Hypothesis 6, which predicted a relationship between entrepreneur's ability to respond to environmental changes and business performance; and (d) Hypothesis 8, which predicted a relationship between an investment gap and performance of the enterprise. The following hypotheses were not supported: (a) Hypothesis 3, which predicted a relationship between clarity of goals and the enterprise's performance; (b) Hypothesis 5, which predicted a relationship between the level of education and the enterprise's performance; (c) Hypothesis 7, which predicted a relationship between short- and long-term planning and performance; (d) Hypothesis 9, which predicted a relationship between performance and the impact of rules and regulations; and (e) Hypothesis 10, which predicted a relationship between a relationship between periodic performance assessment and the overall performance of the enterprise. Over all, the results of the study supported the premise that there are strategic behavioral variables that have a correlation with performance of micro and small enterprises.; Micro and small enterprises performed well where entrepreneurs displayed a vision, had a mission for their businesses, responded well to environmental changes, and had levels of investments with no negative gaps.