INFLUENCE OF STRATEGIC INNOVATION ON PERFORMANCE OF MANUFACTURING FIRMS IN KENYA: A LITERATURE BASED REVIEW

  • Peterson Munyua Nduati Jomo Kenyatta University of Agriculture and Technology

Abstract

Purpose of the Study: This study sought to find out the effect of strategic innovation on manufacturing firm’s performance. Strategic innovation is an important factor for organization, sustainable competitive advantage and financial performance. Many changes and an increasingly turbulent environment have characterized the manufacturing industry in Kenya. Many changes and an increasingly turbulent environment have characterized the manufacturing industry in Kenya. Thus, many large manufacturing firms have relocated or restructured their operations opting to serve the local market through importing from low-cost manufacturing areas such as Egypt, South Africa and India therefore resulting in job losses. This is an indication that many manufacturing firms in Kenya are experiencing performance challenges with many reporting profit warnings due to challenges in the operating environment. The study adopted Stakeholder Theory.

Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes. A critical review of empirical literature was conducted to establish the influence of strategic innovation on performance of manufacturing firms in Kenya. Product innovation, process innovation, market innovation and technology innovation strategies had a positively and significantly impact performance among manufacturing firms.

Conclusion: The study concluded that key firm performance areas had considerably and positively grown improved, attributed to a considerable extent to the adoption of the strategic innovation strategies including market innovation strategies and product innovation strategies.

Recommendation: The study recommends that he manufacturing firms should invest more in research and development to be able to innovate more. Secondly, human resource strategies should be adopted those that will make the employees feel as a part of the management. Employees should be also be involved in all levels of strategies development and innovation encouraged and rewarded. Channels should be put in place to ensure that information can flow freely and employees‟ opinions captured. Strategic innovations should be encouraged and firms should continuously look for superior products, processes, adoption of technology and market innovations for competitive advantage.

Keywords: Strategic Innovation, Performance, Manufacturing Firms & Kenya.

Author Biography

Peterson Munyua Nduati, Jomo Kenyatta University of Agriculture and Technology

PhD Candidate, Jomo Kenyatta University of Agriculture and Technology

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Published
2020-07-11
How to Cite
Nduati, P. M. (2020). INFLUENCE OF STRATEGIC INNOVATION ON PERFORMANCE OF MANUFACTURING FIRMS IN KENYA: A LITERATURE BASED REVIEW. African Journal of Emerging Issues, 2(6), 55 - 66. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/113
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Articles