Influence of Organizational Structure on Performance of Selected Small and Micro Enterprises in Machakos County, Kenya

Abstract

Small and micro enterprises are considered to be very important in the growth of many countries’ economies, especially the developing countries. In Kenya, the small and micro enterprises contribute highly in the growth of the economy through job creation, cherishing innovation and inequality reduction. Despite the various interventions made to grow these enterprises they have continued to perform poorly, struggle to survive and majority of them become bankrupt in their early years. This study sought to determine the influence of organizationalstructure on performance of selected small and micro enterprises in Machakos County. The study was anchored on resource-based view theory. The study adopted a descriptive research design. A sample size of 95 business owners from the target population of 2113 SMEs in Machakos County was considered. Stratification was used when selecting the respondents for the study. The researcher collected primary data by use of self-administered questionnaire. From the regressed results it was concluded that the relationship betweenorganization structure and performance of small and micro enterprises is negatively insignificant.The study therefore, made recommendation that; for an organization to thrive and enjoy improved performance, it has to formulate very articulate organizational structure which will be in line with the organizational goals and objectives so as to ensure organizational performance