Effect of innovation on firm competitiveness: the case of manufacturing SMEs in Nairobi County, Kenya Online publication date: Thu, 28-Feb-2019
by Mary Nafula Kiveu; Mary Namusonge; Stephen Muathe
International Journal of Business Innovation and Research (IJBIR), Vol. 18, No. 3, 2019
Abstract: Innovation is widely acknowledged as one of the key factors in firm competitiveness and has become prominent in SMEs' strategies and government policy. However empirical studies linking innovation to competitiveness are very limited. The aim of this study was to analyse the effect of innovation on firm competitiveness in manufacturing SMEs in Nairobi County, Kenya. Data was collected from a sample of 284 enterprises for the period 2012-2014. Multiple linear regression was used to analyse the effect of innovation on competitiveness. Findings indicate 97% of the manufacturing SMEs were innovating with majority implementing incremental innovations. Process, marketing and organisational innovations had positive significant effect on competitiveness, while product innovation had positive non-significant effect. The study recommends the implementation of innovations with high novelty by SMEs to increase their competitiveness. This can be facilitated by SMEs forming linkages and cooperating in innovation with knowledge generating institutions.
Online publication date: Thu, 28-Feb-2019
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Innovation and Research (IJBIR):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org