Using the Six Thinking Hats as a Strategic Tool for Decision Making in Sustaining a Competitve Advantage of SMEs in Kenya

Small and Medium Enterprises are recognized as a leading vehicle for economic development, revenue generation for the nation, a prime source of employment, innovation and technological advancement in both developed and developing nations. However, over the last couple of years, majority of industries both local and international have not been spared from the effect of economic downturn resulting in business closure and in particular the SMEs have not being spared from the effects of economic recession having in mind the negative effects of COVID 19 and this has led to shutting down of majority of the SMEs leading to loss of jobs, loss of income, reduction in gross domestic product, reduction in taxes and other social and economic challenges. SMEs more than ever before need to identify appropriate solutions to the challenges they are facing in order to sustain themselves. Sustainability of SMEs is important for its crucial role in promoting economic growth and equitable sustainable development. Sustainability enables institutions or groups to make decisions and transform those decisions into desired actions and outcomes over time allowing continuity. Six thinking hats is a creative method to analyze a decision, situation or problem in an effective way. The technique interrelates the different thinking styles with different colored hats and guides individuals to use particular thinking styles for each situation presented. By intellectualizing each color of the hat, the SMEs focuses on solutions associated with each color. This paper converses how this technique can be used as a tool for managerial decision making integrating it with the theory of accountability and resource based theory of SMEs in Kenya.

Six thinking hats, sustained competitive advantage, Theory of Accountability, Resource based theory, decision making.

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