Firm Competitiveness in Small Medium Enterprises in Starehe Sub-County in Kenya: What Role Does Organizational Learning Play?

: Employees constitute an important segment of organization’s stakeholders, and their commitment is vitally important in ensuring stability and effectiveness of organizations. Due to changes in the human resource area witnessed in the 21st century, the expectations of employers from their employees have been changing as well, predominantly with investigative studies showing that these expectations are becoming complex with time. The concept of organizational learning has grown in latest times due to the pressures facing modern organizations to adapt and stay competitive in the ever-changing business environment. Many scholars of this concept agree that companies can only realize a viable competitive advantage if they can learn at a pace that is faster than their competitors. This study sought to investigate effect of organizational learning on firm competitiveness of SMEs in Starehe Sub-County in Kenya. The research variable was underpinned on the resource-based view of the firm. Descriptive research design was used in this study. The study target population was 350 SMEs registered in Starehe Sub-County in Kenya. Starehe Sub-County was picked due to high concentration of SMEs. The study employed stratified random sampling, with a sample size of 187-registered SMEs within Starehe Sub-County in Kenya. Primary data for the investigation was collected using a structured questionnaire. Validity of the questionnaire was assessed and confirmed using opinion from experts and review of relevant literature. A pilot study was carried out using twenty employees to support the test of reliability of the questionnaire. Descriptive statistics were analysed using frequencies, percentages, mean, standard deviation and coefficient of variation. Similarly, inferential statistics was analysed using Pearson correlation analysis and linear regression analysis. The results of statistical analysis demonstrated that organizational learning has a positive effect on firm competitiveness of SMEs registered in Starehe Sub-County in Kenya. The conclusion of the study therefore is that organizational learning positively affects firm competitiveness of SME’s in Starehe Sub-County in Nairobi City County. The study recommends that SME’s can utilize the discoveries of this investigation to assess how well the SMEs can enhance the employees training in order to improve on their competitiveness. The rapid changes in technology and the role of social media acting as our puppet masters, imposes the need for employers and employees to continuously renovate themselves through learning of better business strategies.