Effect of Process Innovations on Performance of Small and Medium Manufacturing Enterprises in Nairobi County, Kenya
##article.subject##:
: Process, Innovations, performance, small and medium, manufacturing, enterprises
##article.abstract##
Small and medium-sized businesses (SMEs) must establish and maintain competitiveness in order to contribute effectively to economic development. The purpose of this study is to determine how process innovations affect the performance of small and medium-sized manufacturing firms in Nairobi County, Kenya. The study was based on the Resource-Based and Diffusion-Based Theories of Innovation. The research was conducted using a positivist approach and an explanatory research design. A representative sample of 254 managers or owner managers from manufacturing SMEs registered with the Kenya Association of Manufacturers was selected using a stratified random sampling technique. Data was gathered through the use of a structured questionnaire. The research used qualitative and quantitative data from many sources to compile its findings. To ensure the questionnaire's validity and reliability, pre-testing was conducted. Before choosing the most appropriate analytical model, the collected data was compared to the assumptions of various analytical models. Data were analyzed using descriptive and inferential statistics. There was no influence of the independent variable on the dependent variable. According to the regression model, process innovations account for 47.2% of the variance in firm performance (R2 =.472). Between process innovations and firm performance, there was a significant positive relationship (2=0.558, p0.05). Each step forward in process innovation resulted in a boost to firm performance. According to the study, process innovation has a significant impact on the performance of small and medium-sized manufacturing firms. When small and medium-sized manufacturing firms increased their use of process innovations, their performance increased proportionately. To improve their performance, small- to medium-sized manufacturing enterprises' management should place a greater emphasis on process innovation. Processes within these organizations should be optimized to increase efficiency and effectiveness, which will result in increased market share and decreased operational costs.
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Lin and Wu, (2014): Exploring the role of dynamic capabilities in firm performance under the resource-based view framework Journal of Business Research, 67 (3) (2014), pp. 407-413
Lin, Y. H., Peng, C. H. & Tkao, D. (2008). The innovativeness effect of market orientation and learning orientation on business performance. International Journal of Manpower, 29(8), 752-772.
López-Mielgo, N., Montes-Peón, J.M., Vázquez-Ordás, C.J., (2009). Are quality and innovation management conflicting activities? Technovation 29 (8), 537-545.
Luo, X., Li, H., Zhang, J. & Shim, J. P. (2010). Examining Multi- Dimensional Trust and Multi - Faceted Risk in Initial Acceptance of Emerging Technologies. Decision support systems, 49(2), 222-234.
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Moses, C., Sithole, M. M., Labadarios, D., Blankley, W. & Nkobole, N. (2012). The State of Innovation in South Africa. findings from the South African N.
Mugenda, A. (2008). Social Science Research: Conception, Methodology and Analysis. Nairobi: Kenya Applied Research and Training Services.
Mugenda, O. M. & Mugenda, A. G. (2003). Research Methods: Quantitative & Qualitive Approaches. Nairobi: Acts Press.
Mwangi, S. M. & Namusonge, M. J. (2014). Influence of inoovation of small and medium enterprises (SME) grwoth: A case study of Garment Manufacturing Industries in
Nakuru County. European Journal of Business Management, 5(7).
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Obi-Anike, h. O & Ekwe, M. C (2014). Impact of Training and Development on Organizational Effectiveness: Evidence from selected Public Sector Organizations in Nigeria,
European Journal of Business and Management. Vol6. No29
Obiwuru, T.C., Okwu, A.T., Akpa, V. O. & Nwakwere, A.A. (2011). Effects of Leadership Style on Organizational Performance: A survey of selected Small Scale Enterprises in Ikosi-Ketu Council Development Area of Lacos State, Nigeria, Australian Journal of Business and Management Research . 1(7), 100-111
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