Effect of Growth Strategies on the Performance of Small and Medium Size Enterprises in the Tourism Industry

Abstract

The objective of the study was toassess the effectof growth strategies on the performance of small and medium sizetravel and toursenterprises in NairobiCounty, Kenyaand a corresponding hypothesis was formulatedand tested. The study targetted 40 employees from four leading travel firms in Nairobi County and 39 of them responded. Data was collected using structured questionnaires and analyzed by useof Statistical Package for the Social Sciences, Version21. The study found a positive and statistically significant effect of growth strategieson performance of small and medium size travel and tours enterprisesinNairobi County, Kenya. The study findings support the Resource Based View Theory(Barney, 1986)and Schumpeter’sGrowth Theory of Innovation(1934). The study recommends adoption of severalgrowth strategies to leverage potential profitability and internal business processes synergiesfor enhanced enterprise performance