EVALUATING THE EFFECT OF IMPLEMENTING THE HOUSE OF QUALITY FRAMEWORK ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN KENYA
Abstract
Purpose of Study: This study evaluated the effect of implementing the House of Quality (HoQ) framework on performance of SMEs in Kenya.
Problem Statement: Performance of Small and Medium Enterprises (SMEs) is crucial to the economic growth and development of Kenya, where these businesses contribute significantly to employment and GDP. However, many SMEs struggle with maintaining consistent quality in their products and services, which hampers their competitiveness and long-term sustainability.
Methodology: The study utilized a mixed-methods approach, combining qualitative and quantitative data collected through interviews and structured questionnaire respectively. The target population consisted of SME owners and Managers across all the manufacturing sectors in Kenya. The study employed linear regression model to analyze quantitative data, while thematic triangulation was used to analyze qualitative data.
Result: Findings of the study indicate a positive correlation between implementing HoQ and operational performance (p<.001). The study also shows that 60.4% of variations in performance of SMEs in Kenya is caused by the implementation of HoQ in their processes. Further a unit increase observed in implementing HoQ causes 0.654 units of increase in performance of SME in Kenya.
Recommendation: The paper recommends that SMEs implement HoQ in their operations to effectively meet the needs of their customers, improve their employee retention and grow their market share. The study also recommends that appropriate policies that encourage SMEs to implement HoQ be developed to enhance performance of SMEs given their pivotal role in national economic development and also to sustain their operations.
Keywords: Performance, Quality Function Deployment, House of Quality, Competitive Advantage, Small and Medium Enterprises
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