Networking capabilities, entrepreneurial competencies, and performance of small and medium enterprises in Kenya

Abstract

The general purpose of the study was to examine effect of networking capabilities (NC), entrepreneurial competencies (EC) on the performance of Small and Medium Enterprises (SMEs) in selected towns of the North Rift Region -Kenya. The study was anchored by the theoretical approach of Resource Based View. The study employed positivism research philosophy and explanatory research design and using a stratified random sampling technique. Sample size of 323 drawn from a population of 4596 Small and Medium Enterprises registered with the Uasin Gishu, Tranzoia and Nandi Counties was collected using self-administered questionnaires. Hayes Model 4 process Macro was used to analyse data and test the hypothesis. The study found that; networking capabilities significantly affects firm performance. In addition, entrepreneurial competencies mediate the relationship between networking capabilities and firm performance. The study established that firms with effective networking capabilities are more likely to achieve improved performance outcomes. This indirect relationship between networking capabilities and firm performance through entrepreneurial competencies highlights the importance of fostering and enhancing entrepreneurial competencies within the business context.  The study contributes to knowledge by revealing a complimentary mediation and that entrepreneurial competencies mediates the relationship between networking capabilities and firm performance.