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American Journal of  Financial 
Technology and Innovation (AJFTI)

Technological Orientation and SMEs’ Survival in Kiambu County, Kenya
Jane Wairimu Njoroge1, Priscilla Wanjiru Ndegwa1, James Odhiambo Oringo1*

Volume 3 Issue 1, Year 2025
ISSN: 2996-0975 (Online)

DOI: https://doi.org/10.54536/ajfti.v3i1.6174
https://journals.e-palli.com/home/index.php/ajfti

Article Information ABSTRACT

Received: September 20, 2025

Accepted: October 23, 2025

Published: December 01, 2025

This study examined the influence of  technological orientation on the survival of  Small 
and Medium-sized Enterprises (SMEs) in Kiambu County, Kenya. Guided by the Resource-
Based View (RBV) theory, the research aimed to determine how the adoption and utilization 
of  modern technologies enhance SMEs’ performance, competitiveness, and long-term 
sustainability. A descriptive survey design was employed, targeting 1,362 SMEs from which 
a sample of  93 was drawn using Yamane’s formula. Data were collected through structured 
questionnaires and analyzed using SPSS version 24, employing both descriptive and 
inferential statistics. The study revealed a strong positive relationship between technological 
orientation and SME survival, where firms that integrated innovative technologies in 
operations exhibited greater adaptability, efficiency, and profitability. Specifically, SMEs 
that embraced technology to improve performance, strengthen research and development 
(R&D), and harness innovation infrastructures reported higher survival rates. The findings 
underscore the need for SMEs to strategically invest in technology and build innovation-
driven cultures to withstand market dynamics. The study recommends policy interventions 
that promote digital literacy, improve infrastructure, and enhance access to financing for 
technological investment among SMEs in Kenya.

Keywords
Competitiveness, Innovation, Kenya, 
Kiambu County, SME Survival, 
Technological Orientation 

INTRODUCTION 
Technological orientation refers to how much importance 
companies place on acquiring and utilizing advanced 
technologies for developing new products, improving 
existing ones, and selling techniques. It is widely recognized 
that technology significantly enhances a company’s 
processes and maximizes resource utilization. In today’s 
highly dynamic business environment, technological 
advancements play a crucial role in market competitiveness, 
fostering innovation, and ensuring successful business 
operations (Mathafena & Msimango, 2022). 
In the context of  small and medium-sized enterprises 
(SMEs) in Kenya and Africa at large, the significance of  
technological orientation as a determinant of  survival is 
increasingly recognized. The adoption of  technological 
innovations is essential for improving operational 
efficiency, enabling market competitiveness, and fostering 
growth in SMEs. Chepkurgat et al. (2019) highlight that 
while the impact of  technology on performance can 
vary across sectors, there is a general trend showing the 
importance of  technology in enhancing productivity 
(Chepkurgat et al., 2019). They also mention other studies 
suggesting that technology can automate processes and 
improve managerial functions, which are critical for 
organizational success. Furthermore, Nakola et al. (2015) 
reinforce the argument that technological orientation 
positively influences SME performance in varying 
contexts within Kenya (Chepkurgat et al., 2019).
Understanding the socio-economic landscape of  SMEs 
in Kenya is essential to appreciate the drivers and 
barriers to technological adoption. Korir and Mutua 
identify organizational culture, perceived usefulness, 

and compatibility as significant drivers that facilitate 
innovation among Kenyan SMEs. However, challenges 
such as high costs, lack of  technical skills, and inadequate 
infrastructure can hinder technological uptake (KORIR 
& Mutua, 2024). This highlights the complexities faced 
by SMEs in embracing technology and underscores 
the critical need for supportive policies and tailored 
interventions that align with the unique conditions of  the 
Kenyan economy.
A comprehensive examination of  the factors affecting 
technological innovation adoption among Kenyan SMEs 
reveals that managerial competencies and strategic 
alignment with technological capabilities are vital (Musebe, 
2024). Musebe’s study indicates a positive correlation 
between the adoption of  advanced manufacturing 
technology (AMT) and performance metrics in Kenyan 
SMEs, emphasizing the crucial role of  technological 
investments in enhancing productivity and survival 
(Musebe, 2024). As SMEs navigate the evolving digital 
landscape, their ability to leverage technology effectively 
becomes increasingly pivotal to their operational resilience 
and long-term viability.
The overarching impact of  technological orientation is 
further supported by findings from studies examining 
specific challenges faced by SMEs within the broader 
African context, including those in South Africa. For 
instance, research on township SMEs illustrates that 
the dynamic nature of  these enterprises necessitates 
tailored interventions to promote sustainability and 
growth through innovation (Bvuma & Marnewick, 2020). 
This is corroborated by findings from Lekhanya et al., 
who explore the role of  innovation in the fast-moving 

1 Kenyatta University, Kenya
* Corresponding author’s e-mail: oringo.james@ku.ac.ke



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consumer goods sector and reveal that innovation 
strategies are necessary for ensuring operational efficiency 
and market relevance (Lekhanya et al., 2017).
Moreover, understanding the financing landscape for these 
enterprises is crucial, as financial inclusion significantly 
impacts technological advancements. Wanyoik and 
Kalundu emphasize that financing decisions can influence 
financial performance, which subsequently affects an 
SME’s ability to invest in new technologies (Wanyoik & 
Kalundu, 2022). This interplay between financial health 
and technological orientation underscores the multifaceted 
challenges that SMEs face, necessitating an integrated 
approach to capacity building and resource allocation.
Therefore, the integration of  technological orientation in 
Kenyan SMEs reveals significant challenges that hinder 
technological adoption; however, the potential benefits 
are substantial. Building an environment that fosters 
a culture of  innovation and addresses financial and 
infrastructural barriers will be crucial for the survival of  
SMEs in Kenya and the broader African context.
Small and Medium-sized Enterprises (SMEs) play a 
pivotal role in Kenya’s economic growth, yet their survival 
remains threatened by rapid technological changes 
and limited adoption of  innovation-driven strategies. 
Despite the recognized importance of  technological 
orientation defined as a firm’s commitment to adopting 
and applying modern technologies in its operations 
many SMEs in Kiambu County continue to lag behind in 
technology integration. This limits their competitiveness, 
operational efficiency, and ability to withstand market 
disruptions (Mathafena & Msimango, 2022; Chepkurgat 
et al., 2019). While studies affirm that technological 
orientation enhances productivity and performance, the 
extent to which it contributes to the survival of  SMEs 
within Kenya’s dynamic business environment remains 
underexplored (Nakola et al., 2015). Factors such as 
limited technical expertise, inadequate infrastructure, and 
the high cost of  technological tools further constrain 
SMEs’ capacity to leverage technology for sustainable 
growth (Korir & Mutua, 2024). These barriers raise 
critical questions about how technological orientation 
influences SME survival and what contextual factors 
shape its effectiveness within Kiambu County.
Moreover, the relationship between technological 
orientation and SME survival in Kiambu County is 
compounded by managerial, financial, and infrastructural 
challenges that influence technology adoption decisions. 
As Musebe (2024) notes, managerial competencies and 
strategic alignment with technological capabilities are vital 
determinants of  technological success, while financial 
constraints limit firms’ ability to invest in innovative 
systems (Wanyoik & Kalundu, 2022). Although empirical 
evidence from other African contexts indicates that 
innovation enhances sustainability and competitiveness 
(Bvuma & Marnewick, 2020; Lekhanya et al., 2017), there 
remains a paucity of  localized studies focusing on how 
technological orientation directly impacts the longevity 
of  Kenyan SMEs. Understanding this relationship is 

critical for formulating targeted policies and interventions 
to strengthen SME resilience, promote innovation-driven 
growth, and enhance their contribution to Kenya’s socio-
economic development.

LITERATURE REVIEW
This study was hinged on Resource-Based View (RBV) 
theory. The theory entails how SMEs can leverage their 
unique advantages in creating a long-term competitive 
advantage. The theory postulates that a business’s ability 
to perform effectively is dependent on both external 
variables and internal resources and how it distributes 
and utilizes such resources. The RBV is based on Barney’s 
work from 1991 and suggests that firms with strategic 
resources have a significant competitive advantage over 
those without.
Scholars in RBV components submit that a firm’s capacity 
to focus on long-term goals and sustain an alignment 
that is efficient for improved commercial success is 
significantly influenced by its technology orientation 
(Davidsson et al., 2009). The Resource-Based View (RBV) 
theory comprises the capabilities framework, which is 
viewed from a dynamic angle (Tajeddini & Mueller, 2009). 
Numerous studies and criticisms have been conducted on 
this theory (Foss & Knudsen, 2010).
The concept is crucial for technological orientation 
because, in order to increase their chances of  survival 
and acquire a competitive edge, SMEs must recognize 
and make use of  their special technology resources and 
capabilities. Utilizing this framework to apply the idea of  
technological orientation to a firm makes it clear how 
important it is to embrace current technologies. Novel 
technologies and other strategic resources are seen as 
valuable assets, and their value rises even further if  they 
are uncommon and hard to duplicate. Firms with a 
strong technological focus are more capable of  adjusting 
to shifting market trends over time, which strengthens 
their competitive advantage (Foss & Knudsen 2010). 
According to Tajeddini and Mueller (2009), the capacity 
of  an enterprise to remain at the forefront of  strategic 
breakthroughs and to maintain a lead in strategic 
innovations is ensured by its technological orientation, 
which adds to sustainability.
The technological orientation significantly influences 
the survival of  a business. The enterprises that hastily 
embrace new technologies and integrate them into 
their operations are more likely to survive compared to 
those that stick to their old ways of  doing things. Use 
of  emerging technologies and embracing an innovation 
culture allow businesses to offer their consumers 
products and services that meet their preferences and 
needs, meaning that such consumers will be attracted to 
firms with new technologies, which will increase chances 
of  survival of  these businesses (Zhai et al., 2018). In 
addition, technological innovation can help companies 
create new products, thereby diversifying and increasing 
their chances of  survival.
A study by Arzubiaga et al. (2018) confirms that SMEs that 



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have embraced innovation have performed excellently 
in their respective markets. According to Lumpkin and 
Dess (2001), adopting new technologies has helped 
SMEs explore new market opportunities, which has 
played a huge role in their survival. SMEs that fail to 
adopt new technologies or integrate innovation in their 
operations find it difficult to survive beyond the fifth year 
after their establishment. Thus, as these studies suggest, 
technological orientation determines whether or not a 
business, particularly SMEs, survives the dynamic forces 
that frequently occur in all markets.
Adam and Alarifi, (2021) evaluated the impact of  
innovation practices and external support on SMEs’ 
survival and performance. The study aimed to determine 
the relationship between these variables, particularly 
during global crises such as COVID-19. The scholars 
administered online questionnaires to 259 SME managers 
randomly selected from various SMEs in Saudi Arabia. 
The collected data was analyzed using software known as 
SmartPLS3. The findings of  this study indicated that the 
innovative strategies adopted by SMEs in Saudi Arabia 
to counter the COVID-19 repercussions improved 
SME performance and increased the likelihood of  these 
businesses surviving the pandemic. The results of  the 
study also demonstrated that while external support had 
little effect on SMEs’ performance, it was essential in 
enhancing the beneficial effects of  innovation methods 
that SMEs implemented on firm survival. 

MATERIALS AND METHODS
The study adopted a descriptive survey research design 
to examine how technology orientation influences 
the survival of  SMEs in Kiambu County. This design, 
as defined by De Vaus (2016), provided a structured 
approach for collecting data through standardized 
questionnaires to understand the behavior, strategies, 
and market orientation of  SMEs. The target population 

comprised 1,362 SMEs listed in the Kiambu Business 
Directory across different sectors, from which a 
sample of  93 respondents was selected using Yamane’s 
(1967) formula and random sampling to ensure fair 
representation. Data collection involved the use of  
structured questionnaires developed after a pilot test, 
representing 10% of  the sample size, to ensure reliability 
and validity. Content validity was confirmed through 
expert review and Principal Component Analysis (PCA), 
while reliability was measured using Cronbach’s Alpha, 
with coefficients above 0.7 deemed acceptable.
For data collection and analysis, the researcher, assisted 
by a trained team, distributed and retrieved questionnaires 
over a two-month period, following approvals from 
Kenyatta University and National Commission for 
Science, Technology and Innovation (NACOSTI). Data 
were analyzed using SPSS (version 24), employing both 
descriptive and inferential statistics to test correlations 
between market, technological, and entrepreneurial 
orientations and SME survival. The results were 
presented using tables, bar graphs, and pie charts. Ethical 
considerations included obtaining informed consent, 
ensuring participant confidentiality, and complying with 
the Data Protection Act (2019). Respondents participated 
voluntarily and could withdraw at any stage without 
penalty.

RESULTS AND DISCUSSION
Response Rate
Table 1 provides crucial information about the 
participation of  individuals in the study. It details the 
number of  individuals who responded to the research 
instrument (response rate) and those who did not (non-
response rate). This data is essential for understanding 
the representativeness of  the study’s findings and 
assessing potential biases that may have arisen due to 
non-participation.

Table 1: Response Rate
Rates Frequency Percentage
Response 73 76.8%
Non-Response 22 23.2%
Total 95 100

Source: Field Survey (2024)

The findings in Table 1 show a response rate of  76.8% 
and a non-response of  23.2%. The non-responses were 
a result of  incomplete responses by the respondents. 
Cooper and Schindler (2009) noted that a response rate 
above 50% is considered acceptable for investigation. 
Based on this assertion, a response rate of  76.8% was 
considered appropriate for analysis and reporting in this 
study.

Demographic Information
To ensure the researcher’s interpretations of  data on 
strategic orientation and survival of  the SMEs in Kiambu 

County were unbiased and appropriately represented, 
the study gathered demographic information from 
respondents. This included details like gender, education 
level, age, business operational duration, and position 
of  control within the business. By analyzing these 
characteristics, the researcher could identify potential 
biases or limitations in their own perspectives and adjust 
their interpretations accordingly.

Gender of  the Respondents
Information on the respondents’ gender was examined in 
the study to determine the number of  male and female 



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who participated in the study. This is critical for the 
researcher to attain an unbiased outcome to ensure that 

responses are obtained from both genders. The outcome 
of  this analysis is contained in Figure 1.

Figure 1: US Financial Crime Losses by Type
Source: Field Survey (2024)

Figure 2: Educational Qualification of the Respondents
Source: Field Survey (2024)

With regard to strategic orientation and survival of  SMEs 
in Kiambu County, Kenya, it was observed that males 
constituted 74.6% of  the total respondents of  the study, 
with the female counterpart representing the remaining 
25.4%. From the observation, it could be attributed that the 
males who are heads of  the households have more time to 
engage in productive activities compared to the females who 
have to combine both house chores with SMEs activities, 
thereby resulting in only a few women participating.

Educational Qualification
Education serves as the fertile ground for knowledge, and 
knowledge fuels the engine of  innovation and creativity. 
For entrepreneurs, this translates to valuable insights that 
enhance their ability to navigate the competitive landscape 
and secure their businesses’ survival. Recognizing this 
crucial link, this section looks into the educational 
backgrounds of  the study’s respondents, presenting the 
findings visually in Figure 2.



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Figure 2 revealed the educational landscape of  the 
respondent pool. Notably, 45% held certificate/diploma 
qualifications, while 43.4% possessed undergraduate 
degrees. Masters and PhD holders made up smaller 
groups, with 8 (10.8%) and 1 (0.8%), respectively. This 
diversity of  educational backgrounds strengthens the 
reliability of  the information collected, as it encompasses 
a wider range of  perspectives and experiences. This 
variety allows the researcher to draw valid conclusions 

about strategic orientation and SME survival in Kiambu 
County, Kenya.

Age of  the Respondents
Information on the age of  the respondents was obtained to 
determine whether the knowledge of  strategic orientation 
in relation to SMEs’ survival plays a significant role in 
Kiambu County, Kenya. With respect to this, the outcome 
obtained from the respondents is documented in Figure 3.

Out of  the total respondents, 17 (24.5%) were between 
18 to 25 years, 19 (26.4%) were between 26-35 years, 
while 24 (33.8%) were between 36-45 years. Only 8 
(11.1%) were between 46-55 years of  age. In addition, 
3 (4.2%) respondents were 56 and above. This result 
showed that the majority (33.8%) of  the entrepreneurs’ 
population was young and in the active age group, 
implying that entrepreneurs can employ different 
strategic orientations to ensure their SMEs’ survival in 
Kiambu County, Kenya.

Business Operational Duration
The length of  time the business has been in place was 
examined in the study. This is crucial in determining the 
survival rate of  the business as it relates to the employment 
of  strategic orientation in Kiambu County. The outcome 
of  the business with respect to the operational duration 
is presented in Figure 4.
Entrepreneurs’ distribution by their business duration 
indicated that 42.2 (30%) had been in operation between 
1 to 5 years, 26 (36.9%) had 6 -10 years of  operational 
duration and 10 (13.5%) had 11 - 15 years of  existence. 
However, only 5 (7.5%) of  the respondents noted that 
their businesses have been in existence above 15 years. 
The result showed that the majority of  the entrepreneurs 
have been in existence for six to ten years. The result 

showed that even though the entrepreneurs have had a 
considerable experience owning to their active age groups, 
the majority of  them still operated on a small scale. This 
may be as a result of  the inadequate capital to deploy the 
right strategy for survival in the market.

Position of  Control
Recognizing the critical role of  ownership and control 
structures in shaping business decisions and influencing 
SME survival, the study gathered detailed information 
on this aspect. Through surveys with field respondents, 
data were collected to pinpoint the position of  ownership 
and control within each business. The findings from 
this inquiry are comprehensively presented in Figure 5, 
offering valuable insights into the diverse ownership and 
control landscapes of  SMEs in the study.
In order to determine the management or ownership 
of  the business in the Kiambu County, information 
was obtained from the respondents, and the outcomes 
are shown in Figure 5. With this, it was noted that 
69.7% capturing 49 participants, were owners of  the 
investigated business in Kiambu County, while 30.3% of  
the participants were managers of  these businesses in the 
study area. From the outcome recorded, it is worthwhile 
to note that the majority of  the business owners prefer to 
manage and control their businesses, thereby deploying 

Figure 3: Age of the Respondents
Source: Field Survey (2024)



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the best strategic orientation that wold ensure the survival 
of  the SMEs in Kiambu County, Kenya.

Descriptive Analysis
The analysis of  the study’s findings leveraged descriptive 
statistics derived from respondents’ 5-point Likert scale 
responses in Kiambu County. Each option, ranging from 
1 (strongly disagree) to 5 (strongly agree), was assigned a 
numeric value: 2 for disagree, 4 for agree, and 3 for neutral. 
To gauge the achievement of  the research objectives, the 
researcher examined the percentage of  responses fitting 
each category and calculated the mean and standard 
deviation. Ultimately, the study’s success was determined 

by comparing the overall composite mean, representing 
the average across all survey questions, to pre-defined 
criteria.

Technology Orientation
Businesses leverage technology orientation to differentiate 
themselves and enhance service delivery to customers. 
Recognizing this crucial role, the study sought to gather 
participants’ perspectives on the matter. Table 2 presents 
the analysis of  these perspectives, showcasing the 
percentage of  respondents holding specific views and the 
variability in their opinions as reflected by the standard 
deviation of  mean scores for related survey items.

Figure 4: Duration of Business Operation
Source: Field Survey (2024)

Figure 5: Position in the Business
Source: Field Survey (2024)



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Table 2: Descriptive Statistics of Technology Orientation
Item Responses n=71 Mean St. 

devSD% D% N% A% SA%
The company applies high technological know-how 
to improve performance

3.1 4.3 10.4 61.3 20.9 3.926 0.871

Technological application is vital for a firm 6.7 21.5 22.7 33.7 15.3 3.294 1.164
Research and development is usually carried out so 
as to be better at doing business.

15.3 38.0 22.1 19.0 5.5 3.613 1.123

The technical infrastructure is available within the firm 6.7 17.8 23.3 46.0 6.1 3.269 1.042
The firm harnesses innovation infrastructures to fit 
today's skills

8.6 14.1 10.4 46.0 20.9      3.564 1.212

Technological orientation helps to make business 
easy and efficient

5.5 1.8 10.4 54.6 27.6 3.969 0.977

Av. Mean = 3.60583; Av. St. Dev =1.06483
Source: Field Survey (2024)

In view of  technological orientation, the respondents 
were interrogated on whether the company applies 
high technological know-how to improve performance. 
Following the statement, 7.4% of  the participants 
disagreed with the claim, with 10.4% observing neutrality 
of  the assertion, while 82.2% agreed with the assertion 
that the company applies high technological know-how 
to improve performance. The validation of  the assertions 
put forward was through a mean score of  3.926 and 
a value of  standard deviation of  0.871. Technical 
application is vital for the firm was put forward to the 
target audience, where 22.7% remained neutral, while 
28.2% of  the participants disagreed with the claim while 
49% agreed with the statement that technical application 
is vital for the firm. The claims made were affirmed by 
an average score of  3.294 and a corresponding standard 
deviation of  1.164.
Furthermore, research and development activities are 
often undertaken to enhance business operations. This 
view was supported by 24.5% of  the respondents, while 
22.1% remained neutral. However, a majority of  53.3% 
disagreed with the statement. Drilling from the responses, 
a confirmation by a mean of  3.613 and a deviation of  
1.123 on a standard was obtained. More so, the technical 
infrastructure available within the firm was not supported 
by 24.5% of  the participants, while such a statement was 
supported by 52.1% of  the audience, with only 23.2% 
being neutral. These responses were supported by a mean 
score of  3.269 and a standard deviation of  1.042.
The assertion that the firm harnesses innovation 
infrastructures to fit into today’s skills was acknowledged 
by 66.9% of  the respondents, while 22.7% had a contrary 
view, with only 10.4% being neutral on the statement. The 
observed outcomes from the responses are demonstrated 
by a mean of  3.564 and 1.212 deviations from the standard. 
Also, technology orientation helps to make business easy 
and efficient was supported by 82.2% of  the respondents, 
with 10.4% being neutral, and 7.3% of  the participants 
disagreeing to the claim. Having observed the outcome 

of  the statements on technology orientation, a composite 
mean of  Therefore, drawing from the statements under 
market orientation, a composite mean of  3.60583was 
realized with a corresponding 1.06483 standard deviation. 
This outcome illustrated that technology orientation is 
significant in the survival of  SMEs in Kiambu County in 
Kenya, as indicated by a mean value that is above the 3.0 
threshold utilized in the study.
These results are supported by prior research, which 
emphasizes the critical role of  technology in business 
sustainability. In their study, Okoisama and Ukoha 
(2019) found that entrepreneurial initiatives anchored 
on technology enhance organizational survival, while 
Ogbari et al. (2022) established that competitiveness 
is significantly influenced by a firm’s technological 
orientation from a strategic perspective. Similarly, Kiiru, 
Mukulu, and Ngatia (2022) documented that technological 
adoption contributes positively to the performance 
of  SMEs in Kenya, particularly in the manufacturing 
sector. Collectively, these findings affirm that technology 
orientation enables SMEs to adapt to market dynamics, 
improve service delivery, and secure long-term survival.

Survival of  SMEs
To pinpoint the strategic aspects influencing SME survival 
in Kiambu County, the study gathered data on business 
longevity and its connection to strategic orientation. 
Table 3 presents a comprehensive analysis of  this data, 
summarizing the performance of  individual survey items 
through mean scores, percentages of  responses, and 
standard deviations. This detailed breakdown allows for 
precise identification of  the strategic components with 
the most significant impact on SMEs’ survival.
Based on the findings in Table 3, it was realized that 
5.5% of  the respondents disagreed with the consistency 
aspect of  the SMEs survival. 26.4% remain neutral to the 
assertion pertaining to the consistency of  the SMEs, with 
the majority (68.1%) of  the participants concurring with 
the same. The outcome was followed by a mean score 



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These findings align with prior research by Ogbari 
et al. (2022) and Kiiru et al. (2022), who observed 
that technological capability is a core driver of  SME 
competitiveness and resilience in dynamic markets.

CONCLUSION
The study concludes that technological orientation plays 
a critical role in the survival and competitiveness of  
SMEs in Kiambu County. Firms that proactively adopt 
and integrate new technologies in production, marketing, 
and management processes exhibit higher operational 
efficiency and adaptability to market shifts. Technological 
orientation not only enhances internal capabilities but 
also fosters innovation and responsiveness to customer 
needs, key elements for long-term sustainability.
However, SMEs continue to face challenges such as 
limited access to finance, inadequate technical skills, 
and infrastructural constraints that hinder technology 
adoption. Addressing these limitations is crucial to 
strengthening the resilience and competitiveness of  
Kenya’s SME sector.

Recommendations
Investment in Technological Infrastructure
SMEs should prioritize upgrading their technological 
tools and systems to improve operational efficiency and 
customer service. Government and development agencies 
should facilitate affordable access to digital platforms and 
ICT infrastructure.

Capacity Building and Training
There is a need to enhance the digital literacy and technical 
skills of  SME owners and employees through training 
programs, mentorship, and partnerships with universities 
and innovation hubs.

Access to Finance for Innovation
Financial institutions should design SME-friendly 
credit facilities and innovation grants that enable firms 
to acquire and maintain modern technologies without 
excessive capital constraints.

Policy Support and Institutional Frameworks
Policymakers should implement supportive policies 
that encourage technological innovation among SMEs, 
including tax incentives, subsidized ICT tools, and 

Table 3: Descriptive Statistics of SMEs Survival
Item Responses n=71 Mean St. 

devSD% D% N% A% SA%
The consistency of  SME products/services 
contributes to their survival

1.8 3.7 26.4 49.7 18.4 3.791 0.849

The profitability of  SME determines their survival 0 2.5 15.3 60.1 22.1 4.018 0.689
The growth of  an SME helps its survival 0 1.2 6.1 65.0 27.6 4.190 0.593

Av. Mean = 3.9996; Av. St. Dev =0.7103
Source: Field Survey (2024)

of  3.791 and a corresponding 0.849 deviation from the 
standard value of  the mean. Regarding the profitability of  
the SMEs, only 2.5% of  the respondents disagreed, 15.3% 
were neutral, while 82.2% of  the respondents aligned 
their views with the profitability aspect of  the businesses 
in Kiambu County, Kenya. The growth aspect of  the 
SMEs was disagreed with by 1.2% of  the participants. 
6.1% showed neutrality to the claim regarding the 
growth of  the SMEs in the study area, and 92.6% of  
the participants aligned their views with the survival of  
the SMEs through profitability. The outcome was validly 
confirmed by a 4.190 mean and 0.593 standard deviation. 
A mean and standard deviation of  3.9996 and 0.7103 
were also revealed. Based on these outcomes, the survival 
of  the SMEs depends mainly on consistency, profitability, 
and growth of  the SMEs in question. 

CONCLUSION
The study achieved a 76.8% response rate, which 
was considered adequate for reliable analysis. The 
demographic profile showed that most respondents 
were male (74.6%) and within the productive age bracket 
of  26–45 years, reflecting the dominance of  youth-led 
enterprises in Kiambu County. Educational attainment 
was relatively high, with over 45% holding diploma or 
undergraduate degrees, implying that education plays a 
role in technology adoption decisions.
Findings from descriptive analysis demonstrated 
that technological orientation significantly enhances 
SME survival. Respondents agreed that applying high 
technological know-how (Mean = 3.93), maintaining 
technical infrastructure (Mean = 3.27), and conducting 
R&D (Mean = 3.61) improve firm performance and 
competitiveness. A composite mean of  3.61 affirmed that 
most SMEs in Kiambu County recognize technology as 
vital for efficiency and market adaptation.
Further, analysis of  SME survival indicators (Mean = 
3.99) revealed that consistency, profitability, and growth 
are the primary dimensions of  survival. SMEs leveraging 
technology to optimize operations and innovate reported 
better outcomes in customer retention, profitability, 
and long-term sustainability. The study also found that 
managerial competencies, access to finance, and availability 
of  infrastructure moderated the relationship between 
technological orientation and SME survival, influencing 
how effectively firms adopted new technologies.



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https://journals.e-palli.com/home/index.php/ajfti

Am. J. Financ. Technol. Innov. 3(1) 196-204, 2025

research grants for small firms.

Promoting a Culture of  Innovation
SMEs should embed innovation into their strategic 
objectives, encouraging creativity, continuous 
improvement, and research and development to remain 
competitive in evolving markets.

Future Research
Further studies should explore the moderating effects of  
managerial competence, firm size, and industry type on 
the relationship between technological orientation and 
SME survival across other Kenyan counties.

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