Effect of Relationship Marketing on the Performance of MSMES in Kenya
Abstract
The main objective of the study was to examine the effect of relationship marketing on the performance of MSMEs in Kenya. The study was guided by positivism research philosophy. It utilized a descriptive survey design. The study population included 8,526 licensed MSMEs in Tharaka-Nithi County. Stratified sampling and random sampling techniques were employed to arrive at the study sample. Data was collected using questionnaires. Quantitative data was analyzed using both the descriptive statistics and inferential statistics. The descriptive statistics included frequency distributions, mean and measures of dispersion while the inferential statistics were t-test, multiple regression analysis, Karl-Pearson correlation coefficient and F-test. The findings of this study revealed that relationship marketing was strongly and positively correlated to performance of MSMEs. From the descriptive findings, it was also evident that MSME owners/managers that adopted relationship marketing perceived their firms performance to be growing. Further, the bivariate regression findings suggested that relationship marketing accounted for 48.2% of the variation in performance of MSMEs. The effect of relationship marketing on performance of MSMEs was also positive and significant. The study recommends that MSME owners in Kenya should embrace relationship marketing as a strategy towards better firm performance. Initiatives such as timely customer feedback, customer involvement and orientation while enhancing firm reliability and accountability towards the customers are sure to culminate to superior performance.
Key Words: Relationship Marketing, Performance, MSMEs, Tharaka-Nithi County and Kenya.
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