Effects of Structural Dimension of Business Networking on Organizational Efficacy among Small and Medium Enterprises in Nairobi Kenya

Despite being recognized as the backbone of the country's Kenya's economy, many Kenyan SMEs face significant challenges, key among them being long term viability. This study investigated the effects of structural dimension of business networking on organizational efficacy among small and medium enterprises in Nairobi Kenya. The study was informed by the Network Theory. This study utilized Positivist philosophy. The research utilized explanatory research design. The research design collected quantitative data. The study utilized deductive reasoning when conducting the research. The study area was Nairobi City County. The target population for the study was 4,896 SMEs in the manufacturing industry, registered and licensed to operate in Nairobi City County in the year 2022. The population was classified as Small – 3,307, and Medium – 1,589. The unit of observation and the respondents were the owners/managers of the SMEs in Nairobi, Kenya. Because of the large population of the target group, the study employed Multistage Area Sampling technique in selecting the respondents using Makadara Sub-county. After clustering, simple random sampling was utilized to derive the units. A sample size determination, a sample size of 369 was realized. The research purely relied on primary data that was collected using a questionnaire. Correlation results indicated that structural dimension was positively and significantly associated to organizational efficacy (r=0.704, p=0.00<0.05). Regression coefficients revealed that there was a positive and significant relationship between structural dimension and organizational efficacy (β =0.414, p=0.000). This was supported by a calculated t-statistic of 6.076 that is larger than the critical t-statistic of 1.96. The study concludes that the structural dimension of business networking has a significant effect on organizational efficacy among SMEs in Nairobi, Kenya. The study recommends that small and medium enterprises in Nairobi, Kenya, prioritize the development and strengthening of their business networks' structural dimensions. This includes fostering robust connections, enhancing communication channels, and establishing well-defined roles and relationships within the network. Emphasizing these structural aspects can significantly boost organizational efficacy. Keywords; Structural Dimension, Business Networking, Organizational Efficacy, Small and Medium Enterprises