Social Entrepreneurial Behavior and SMEs' Competitive Advantage: Evidence from Small and Medium-Sized Enterprises in Kenya

Abstract

Purpose: The objective of this paper was to examine the effect of social entrepreneurial behavior (SEB) on SMEs' competitive advantage in Kenya.

Design/Methodology/Approach: A survey research design approach was adopted. The study population consisted of all the licensed small and medium-sized enterprises in Nairobi County, Kenya. However, out of the 10,924 small and medium-sized enterprises (SMEs), a sample of 386 was selected based on Yamane's (1967) procedure. The data were collected with the aid of a self-administered questionnaire and analyzed through descriptive and inferential statistics. The hypotheses were tested through the entry regression analysis technique.

Findings: Evidence obtained from the analysis confirmed that social entrepreneurial behavior (β= 0.499, p < 0.05) had a positive and significant effect on competitive advantage.

Research limitations: This study had limitations. First, the study focused only on the aspects of social entrepreneurial behavior linking it to competitive advantage. SEB dimensions such as Entrepreneurial virtue and Judgment capacity may be studied in the future. Second, future studies may examine various methods of measuring social entrepreneurial behavior. Thirdly, the study concentrated on the economy of Kenya, which is a developing country. Thus the result may vary in other economies.

Practical implications: Based on the findings, the study recommends that small and medium-sized enterprises should consider social entrepreneurial behavior to enhance competitive advantage and improve their overall performance.

Originality/Value: The framework builds on the essential themes of competitive advantage and shows their relevance in practice through social entrepreneurial behavior. Thus, the study partly contributes to the inconclusive debate on social entrepreneurial behavior (SEB) and firm competitive advantage nexus by arguing that social entrepreneurial behavior (SEB) has a direct effect which is more important in enhancing an organization's competitive advantage.