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

Abstract

The objective of the study was to assess the effect of growth strategies on the performance of small and medium size travel and tours enterprises in Nairobi County, Kenya and a corresponding hypothesis was formulated and 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 use of Statistical Package for the Social Sciences, Version 21. The study found a positive and statistically significant effect of growth strategies on performance of small and medium size travel and tours enterprises in Nairobi County, Kenya. The study findings support the Resource Based View Theory (Barney, 1986) and Schumpeter's Growth Theory of Innovation (1934).  The study recommends adoption of several growth strategies to leverage potential profitability and internal business processes synergies for enhanced enterprise performance.