African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4191

Article in Press

MODERATING EFFECT OF FIRM SIZE1 ON1 THE1 RELATIONSHIP BETWEEN1 INCLUSIVE1 BUSINESS1 MODELS1 AND1 THE1 SURVIVAL OF SMALL BUSINESSES1 IN1 KENYA'S1 NYAMIRA COUNTY

Julius Moindi Ochoi1*, Mary Namusonge2, and Stephen Muathe3

  •  Received: 20 January 2024
  •  Accepted: 10 May 2024
Any economy relies on micro- and small-sized firms to drive economic growth and social welfare. Research shows that they make up a big fraction of enterprises, employ more people than larger ones, contribute to a nation's GDP, and stimulate innovation. However, MSEs have significant mortality rates, especially in Kenya. Good management techniques, access to funding sources of business ideas, and owners' or managers' educational and professional qualifications have been shown to improve their survival. This study examines how business size moderates inclusive marketing and MSE survival in Nyamira County, Kenya. Structured questionnaire, random stratified sampling, positivist philosophical framework, and explanatory design yielded 249 respondents. We tested the hypothesis with hierarchical regression. Research indicates that inclusive marketing does not significantly impact MSE survival (? = -0.026, p = 0.314). Inclusive marketing was found to be negatively and statistically significant (? = -0.056, p = 0.002). We can conclude that company size moderates the association between inclusive marketing and MSE performance, improving MSE business survival. This study suggests that micro, small, and medium-sized companies (MSEs) are more sustainable as they grow. Larger SMEs will survive better than smaller ones because firm size moderates the association between inclusive marketing and MSEs' business survival. The study examines business size and MSE survival in an emerging market, unlike prior studies that used developed market data. Prior studies used data from western economic firms, notably in industrialized nations. This study supports the growing body of evidence that such a strategy is not fully relevant to emerging countries like Kenya due to economic, business, and cultural differences.

Keywords: Inclusive Business Model, Micro and Small Enterprises, Survival and Firm Size