THE ROLE OF MANAGEMENT STRUCTURE ON PROMOTION OF INTRAPRENEURSHIP IN THE SMALL AND MEDIUM MANUFACTURING ENTERPRISES IN KENYA

Abstract

The manufacturing sector in Kenya is of great importance to the growth of the economy as it significantly contributes to the gross domestic product of the economy. The sector has over the years experienced a lag in its growth as statistics show thus necessitating a need to improve its performance. The small and medium manufacturing enterprises which form part of the small and medium enterprises sector are the majority in the manufacturing sector. In general, the small and medium enterprises sector is an important part of the country’s economy as it generates over 60% of employment in an economy, but faces a myriad of challenges. Practicing intrapreneurship has been known to improve growth and profitability not only in the large enterprises but also in the small and medium enterprises as well. Putting in place appropriate management structures has been known to support and enhance intrapreneurship. Management structures that promote a firms intrapreneurship are part of entrepreneurial management which as opposed to administrative management is necessary for any firm because it is pro-active, risk- taking and opportunity driven. The objective of the study was to find out the role of management structure on promotion of intrapreneurship in small and medium manufacturing enterprises in Kenya. The list of the firms registered with the Kenya Association of Manufacturers was used as the sampling frame and data collected using the random sampling method. Descriptive and correlational research designs were used for the study. Correlation analysis, scatter plot and multiple linear regression analysis were used to establish the relationship between the independent variables and dependent variable. Key Words : Intrapreneurship, Small and Medium Manufacturing Enterprises, Management Structure, Entrepreneurial Management