STRATEGIC ROLE OF INDUSTRIAL EXPERIENCE IN THE RELATIONSHIP BETWEEN INNOVATIVENESS AND GROWTH OF ENTERPRISES IN KENYA
Purpose of the study: The study will help the existing and potential entrepreneurs and small business advisors to consider the different goals and types of success which small business can achieve. In addition, government would be able to formulate strategies and policies for improving business conditions.
Problem statement: Despite there being many studies conducted on the topic of innovativeness and performance, none of these studies focused on the strategic role of industry experience on the relationship between innovativeness and growth of Top 100 Enterprises. The current study will bridge the gap and come up with a best solution.
Study methodology: The study adopted a descriptive and explanatory research design. The sampling frame was the top 100 mid-sized companies in Kenya in the year 2010 - 2015. The sample size was 164 top managers in the Top 100 mid-sized companies who reports to the CEO. Stratified random sampling technique was used. Primary and secondary data was used.The returned questionnaires were edited for completeness, coded and entries made into Statistical Package for Social Sciences (SPSS version 20). The study used ‘split-halves’ and ‘internal consistency’ method to measure reliability.The descriptive analysis was used. A simple linear regression was used to test the moderating effect of industry exposure on the relationship between autonomy and growth of SMEs.
Results of the study: innovativeness was found to be satisfactory in explaining growth in top 100 enterprises in Kenya and it has a positive and significant effect on growth.
Conclusion and policy recommendation: study concluded that innovativeness has a positive and significant effect on growth. Innovativeness reflects a firm’s ability to incorporate new ideas and creative processes that may result in new products, markets, or technological process. Innovation is a crucial part of a strategy and that entrepreneurship cannot exist without. The study recommended for the enterprises to understand ability to engage in new ideas and creative processes that may result in new products, markets, or technological process. Therefore, innovativeness will play a significant role in solving business problems and challenges regardless of market turbulence, which in turn provides firms with the ability to succeed.
Keywords: innovativeness, Growth, SMEs, KMPG, Kenya
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