INFLUENCE OF ENTREPRENEURIAL GREEN CONSUMER DEMAND ON INNOVATION PERFORMANCE OF MANUFACTURING SMES IN NAIROBI, KENYA
Abstract
Purpose of Study: The study aimed to examine the influence of entrepreneurial green consumer demand on the innovation performance of manufacturing SMEs in Nairobi.
Statement of Problem: There is a need to understand how entrepreneurial green consumer demand impacts the innovation performance of manufacturing SMEs in Nairobi, as this relationship could inform better marketing and innovation strategies within the sector.
Methodology: The study employed a descriptive design, targeting 172 SMEs in Nairobi's manufacturing sector. A stratified random sample of 120 owner-managers was surveyed using questionnaires and interviews. Data analysis involved descriptive and inferential statistics, with linear regression assessing variable relationships.
Result: The model results indicated that the coefficient of entrepreneurial green consumer demand has a positive and statistically significant relationship with the innovation performance of manufacturing SMEs (β = 0.787, p = 0.0001 < 0.05). The study recommends that SMEs in Kenya adopt consumer-driven marketing practices, as they significantly enhance innovation.
Recommendation: SMEs in Kenya should adopt consumer-driven marketing practices to enhance innovation performance.
Keywords: Entrepreneurial green consumer demand, innovation performance, Manufacturing SMEs, Nairobi
References
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Barbier, E. (2011). The policy challenges for green economy and sustainable economic development in natural resources forum. NRF –A United Nations Sustainable Development Journal, 35(3):233-245.
Chen, C. C., Shih, H. S., Shyur, H. J., & Wu, K. S. (2012). A business strategy selection of green supply chain management via an analytic network process. Computers & Mathematics with Applications, 64(8): 2544-2557.
Chen, W., Wu, Y., Yue, Y., Liu, J., Zhang, W., Yang, X., ... & Han, L. (2015). Efficient and stable large-area perovskite solar cells with inorganic charge extraction layers. Science, 350(6263): 944-948.
Coad, A., Segarra, A., & Teruel, M. (2013). Innovation and firm growth: Do firm age play a role? Research Policy, 45(2): 387-400.
Daub, C. H., Scherrer, Y. M., & Verkuil, A. H. (2015). Exploring reasons for the resistance to sustainable management within non-profit organizations. Sustainability, 6(6): 3252-3270.
Drucker, P. (2014). Innovation and entrepreneurship. London; HarperCollins Publishers Ltd.
Drucker, P. F. (1985). The discipline of innovation. Harvard Business Review, 63(3): 67-72.
Efobi, U., Belmondo, T., Orkoh, E., Atata, S. N., Akinyemi, O., & Beecroft, I. (2019). Environmental pollution policy of small businesses in Nigeria and Ghana: Extent and impact. Environmental Science and Pollution Research, 26(3): 2882-2897.
Fatoki, O. (2019). Green Marketing Orientation and Environmental and Social Performance of Hospitality Firms in South Africa. Foundations of Management, 11(1): 277-290.
Federal Statistical Office of Germany (2020). Greenhouse gas emissions in industry: Ecological Economics 68(10): 2637-2645
Freeman, R. E., & Phillips, R. A. (2002). Stakeholder theory: A libertarian defense. Business Ethics Quarterly, 12(3): 331-349.
Frese, M. (2018). Strategy Process as a Characteristic of Small-Scale Business Owners: Relationships with Success in a Longitudinal Study. Journal of occupational and organizational Psychology 82(1): 21-44
Green Jr, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: impact on performance. Supply Chain Management: An International Journal, 17(3): 290-305.
Green, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: impact on performance. Supply Chain Management: An International Journal, 42(7): 640-672.
Greenberg, R. (2018). The Environmental Impact of Manufacturing from the Industrial Revolution to Automation and Everything in Between. Retrieved on February, 19, 2018 from: https://cerasis.com/manufacturing-and-the-environment/
Greeno, J. & Robinson, S. (1992). Rethinking corporate environmental management. The Columbia Journal of World Business, 28(2): 222-232.
Herbst, U., & Merz, M. A. (2011). The industrial brand personality scale: Building strong business-to-business brands. Industrial marketing management, 40(7): 1072-1081.
Hwang, V., Desai., S., & Baird, R. (2019). Access to Capital for Entrepreneurs: Removing Barriers. Kansas City: Ewing Marion Kauffman Foundation.
Jalles, J. T. (2014). How to measure innovation? New evidence of the technology–growth linkage. Research in Economics, 64(2): 81-96.
Johnson, M. D., Nader, G., & Fornell, C. (2016). Expectations, perceived performance, and customer satisfaction for a complex service: The case of bank loans. Journal of Economic Psychology, 17(2):163-182.
Joshi, Y., & Rahman, Z. (2015). Factors affecting green purchase behavior and future research directions. International Strategic management review, 3(1-2): 128-143.
Katz, J. A., & Green, R. P. (2019). Entrepreneurial small business (Vol. 200). New York, NY: McGraw-Hill/Irwin.
Kinoti, M. W. (2011). Green marketing intervention strategies and sustainable development: A conceptual paper. International Journal of Business and Social Science, 2(23): 263-273.
Ko, E., Hwang, Y. K., & Kim, E. Y. (2013). Green marketing ‘functions in building corporate image in the retail setting. Journal of Business Research, 66(10): 1709-1715.
Krishna, A. (2012). An integrative review of sensory marketing: Engaging the senses to affect perception, judgment and behavior. Journal of consumer psychology, 22(3): 332-351.
Kumar, V., Rahman, Z., & Kazmi, A. A. (2013). Sustainability marketing strategy: an analysis of recent literature. Global Business Review, 14(4):
601-625.
Leung, L. (2015). Validity, reliability, and generalizability in qualitative research. Journal of family medicine and primary care, 4(3) :324.
Luthra, S., Garg, D., & Haleem, A. (2016). The impacts of critical success factors for implementing green supply chain management towards sustainability: an empirical investigation of Indian automobile industry. Journal of Cleaner Production, 121:142-158.
Ma, Y., Hou, G., & Xin, B. (2017). Green process innovation and innovation benefit: The mediating effect of firm image. Sustainability, 9(10): 1778.
Ma, Y., Yin, Q., Pan, Y., Cui, W., Xin, B., & Rao, Z. (2018). Green product innovation and firm performance: Assessing the moderating effect of novelty-centered and efficiency-centered business model design. Sustainability, 10(6): 1843.
Maziriri, E. T. (2020). Green packaging and green advertising as precursors of competitive advantage and business performance among manufacturing small and medium enterprises in South Africa. Cogent Business & Management, 7(1): 1719586.
Miroshnychenko, I., Barontini, R., & Testa, F. (2017). Green practices and financial performance: A global outlook. Journal of Cleaner Production, 147: 340-351.
Mueller, S. L., & Thomas, A. S. (2001). Culture and entrepreneurial potential: A nine country study of locus of control and innovativeness. Journal of Business Venturing, 16(1): 51-75.
Nelson, R. R., & Winter, S. G. (2002). Evolutionary theorizing in economics. Journal of Economic Perspectives, 16 (2): 23-46.
Obayelu, A. E. (2016). Sustainable Consumption and Green Marketing in Developing Countries: Contemporary Perspective Using. Handbook of Research on Consumerism and Buying Behavior in Developing Nations, 429(3): 51-58.
Oke, A. (2017). Innovation types and innovation management practices in service companies. International Journal of Operations & Production Management. 27(6): 564-587.
Otieno, D. J., Ruto, E., & Hubbard, L. (2011). Cattle Farmers’ Preferences for Disease‐Free Zones in Kenya: An application of the Choice Experiment Method. Journal of Agricultural Economics, 62(1): 207-224.
Otieno, S., Bwisa, H. M., & Kihoro, J. M. D. (2012). Influence of entrepreneurial orientation on Kenya’s manufacturing firms operating under East African regional integration. International journal of Learning & Development 2(1)
Ott, R. L., & Longnecker, M. T. (2015). An introduction to statistical methods and data analysis. Ontario, CA: Nelson Education.
Patnaik, M. R. P., & Chopdar, M. P. (2017). Green Marketing: An innovative step towards Sustainable Development. Journal of Cleaner Production 141: 385-393
Patnaik, M. R. P., & Chopdar, M. P. (2019). Green Marketing: An innovative step towards Sustainable Development. Journal of environmental Planning and Management 62(13)
Patnaik, M.R., & Chopdar, M. P. (2013). Green Marketing: An Innovative step towards Sustainable Development. International Journal of Remote Sensing and GIS ,2 (3): 80-91.
Prakash, A., & Kollman, K. L. (2012). Biopolitics in the EU and the US: A Race to the Bottom or Convergence to the Top? International Studies Quarterly, 47(4): 617-641.
Sarkis, J., Gonzalez-Torre, P., & Adenso-Diaz, B. (2010). Stakeholder pressure and the adoption of environmental practices: The mediating effect of training. Journal of Operations Management, 28 (2): 163-176.
Sarkis, J., Zhu, Q., & Lai, K. H. (2011). An organizational theoretic review of green supply chain management literature. International Journal of Production Economics, 130 (1): 1-15.
Scott, A. J. (1992). The Roepke lecture in economic geography the collective order of flexible production agglomerations: Lessons for local economic development policy and strategic choice. Economic Geography, 12(2): 309-350.
Sherman, E., Mathur, A., & Smith, R. B. (2017). Store environment and consumer purchase behavior: mediating role of consumer emotions. Psychology & Marketing, 14(4): 361-378.
Shqipe, G., Gadaf, R., & Veland, R. (2013). Innovation strategies and competitive advantage. South East European University, 8(1)): 18-23
Thomas, J. R., Silverman, S., & Nelson, J. (2015). Research methods in physical activity, Champaign, Illinois: Human kinetics.
Uy, M. A., Chan, K. Y., Sam, Y. L., Ho, M. H. R., & Chernyshenko, O. S. (2015). Proactivity, adaptability and boundaryless career attitudes: The mediating role of entrepreneurial alertness. Journal of Vocational Behavior, 86: 115-123.
Vainikka, B. (2015). Psychological factors influencing consumer behaviour. The Journal of Consumer Research 14: 189-199
Were, A. (2016). Manufacturing in Kenya. Features, Challenges and Opportunities. International Journal of Science, Management and Engineering, 4(6): 15-26.
World Health Organization, (2018). How air pollution is destroying our health. Retrieved 23rd, March 2020 from; https://www.who.int/airpollution/news-and-events/how-air-pollution-is-destroying-our-health
Wu, S. I., & Chen, Y. J. (2014). The impact of green marketing and perceived innovation on purchase intention for green products. International Journal of Marketing Studies, 6(5): 81.
Yu, Y. T., & Dean, A. (2017). The contribution of emotional satisfaction to consumer loyalty. International journal of service industry management, 12(3): 34-42.
Barbier, E. (2011). The policy challenges for green economy and sustainable economic development in natural resources forum. NRF –A United Nations Sustainable Development Journal, 35(3):233-245.
Chen, C. C., Shih, H. S., Shyur, H. J., & Wu, K. S. (2012). A business strategy selection of green supply chain management via an analytic network process. Computers & Mathematics with Applications, 64(8): 2544-2557.
Chen, W., Wu, Y., Yue, Y., Liu, J., Zhang, W., Yang, X., ... & Han, L. (2015). Efficient and stable large-area perovskite solar cells with inorganic charge extraction layers. Science, 350(6263): 944-948.
Coad, A., Segarra, A., & Teruel, M. (2013). Innovation and firm growth: Do firm age play a role? Research Policy, 45(2): 387-400.
Daub, C. H., Scherrer, Y. M., & Verkuil, A. H. (2015). Exploring reasons for the resistance to sustainable management within non-profit organizations. Sustainability, 6(6): 3252-3270.
Drucker, P. (2014). Innovation and entrepreneurship. London; HarperCollins Publishers Ltd.
Drucker, P. F. (1985). The discipline of innovation. Harvard Business Review, 63(3): 67-72.
Efobi, U., Belmondo, T., Orkoh, E., Atata, S. N., Akinyemi, O., & Beecroft, I. (2019). Environmental pollution policy of small businesses in Nigeria and Ghana: Extent and impact. Environmental Science and Pollution Research, 26(3): 2882-2897.
Fatoki, O. (2019). Green Marketing Orientation and Environmental and Social Performance of Hospitality Firms in South Africa. Foundations of Management, 11(1): 277-290.
Federal Statistical Office of Germany (2020). Greenhouse gas emissions in industry: Ecological Economics 68(10): 2637-2645
Freeman, R. E., & Phillips, R. A. (2002). Stakeholder theory: A libertarian defense. Business Ethics Quarterly, 12(3): 331-349.
Frese, M. (2018). Strategy Process as a Characteristic of Small-Scale Business Owners: Relationships with Success in a Longitudinal Study. Journal of occupational and organizational Psychology 82(1): 21-44
Green Jr, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: impact on performance. Supply Chain Management: An International Journal, 17(3): 290-305.
Green, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: impact on performance. Supply Chain Management: An International Journal, 42(7): 640-672.
Greenberg, R. (2018). The Environmental Impact of Manufacturing from the Industrial Revolution to Automation and Everything in Between. Retrieved on February, 19, 2018 from: https://cerasis.com/manufacturing-and-the-environment/
Greeno, J. & Robinson, S. (1992). Rethinking corporate environmental management. The Columbia Journal of World Business, 28(2): 222-232.
Herbst, U., & Merz, M. A. (2011). The industrial brand personality scale: Building strong business-to-business brands. Industrial marketing management, 40(7): 1072-1081.
Hwang, V., Desai., S., & Baird, R. (2019). Access to Capital for Entrepreneurs: Removing Barriers. Kansas City: Ewing Marion Kauffman Foundation.
Jalles, J. T. (2014). How to measure innovation? New evidence of the technology–growth linkage. Research in Economics, 64(2): 81-96.
Johnson, M. D., Nader, G., & Fornell, C. (2016). Expectations, perceived performance, and customer satisfaction for a complex service: The case of bank loans. Journal of Economic Psychology, 17(2):163-182.
Joshi, Y., & Rahman, Z. (2015). Factors affecting green purchase behavior and future research directions. International Strategic management review, 3(1-2): 128-143.
Katz, J. A., & Green, R. P. (2019). Entrepreneurial small business (Vol. 200). New York, NY: McGraw-Hill/Irwin.
Kinoti, M. W. (2011). Green marketing intervention strategies and sustainable development: A conceptual paper. International Journal of Business and Social Science, 2(23): 263-273.
Ko, E., Hwang, Y. K., & Kim, E. Y. (2013). Green marketing ‘functions in building corporate image in the retail setting. Journal of Business Research, 66(10): 1709-1715.
Krishna, A. (2012). An integrative review of sensory marketing: Engaging the senses to affect perception, judgment and behavior. Journal of consumer psychology, 22(3): 332-351.
Kumar, V., Rahman, Z., & Kazmi, A. A. (2013). Sustainability marketing strategy: an analysis of recent literature. Global Business Review, 14(4):
601-625.
Leung, L. (2015). Validity, reliability, and generalizability in qualitative research. Journal of family medicine and primary care, 4(3) :324.
Luthra, S., Garg, D., & Haleem, A. (2016). The impacts of critical success factors for implementing green supply chain management towards sustainability: an empirical investigation of Indian automobile industry. Journal of Cleaner Production, 121:142-158.
Ma, Y., Hou, G., & Xin, B. (2017). Green process innovation and innovation benefit: The mediating effect of firm image. Sustainability, 9(10): 1778.
Ma, Y., Yin, Q., Pan, Y., Cui, W., Xin, B., & Rao, Z. (2018). Green product innovation and firm performance: Assessing the moderating effect of novelty-centered and efficiency-centered business model design. Sustainability, 10(6): 1843.
Maziriri, E. T. (2020). Green packaging and green advertising as precursors of competitive advantage and business performance among manufacturing small and medium enterprises in South Africa. Cogent Business & Management, 7(1): 1719586.
Miroshnychenko, I., Barontini, R., & Testa, F. (2017). Green practices and financial performance: A global outlook. Journal of Cleaner Production, 147: 340-351.
Mueller, S. L., & Thomas, A. S. (2001). Culture and entrepreneurial potential: A nine country study of locus of control and innovativeness. Journal of Business Venturing, 16(1): 51-75.
Nelson, R. R., & Winter, S. G. (2002). Evolutionary theorizing in economics. Journal of Economic Perspectives, 16 (2): 23-46.
Obayelu, A. E. (2016). Sustainable Consumption and Green Marketing in Developing Countries: Contemporary Perspective Using. Handbook of Research on Consumerism and Buying Behavior in Developing Nations, 429(3): 51-58.
Oke, A. (2017). Innovation types and innovation management practices in service companies. International Journal of Operations & Production Management. 27(6): 564-587.
Otieno, D. J., Ruto, E., & Hubbard, L. (2011). Cattle Farmers’ Preferences for Disease‐Free Zones in Kenya: An application of the Choice Experiment Method. Journal of Agricultural Economics, 62(1): 207-224.
Otieno, S., Bwisa, H. M., & Kihoro, J. M. D. (2012). Influence of entrepreneurial orientation on Kenya’s manufacturing firms operating under East African regional integration. International journal of Learning & Development 2(1)
Ott, R. L., & Longnecker, M. T. (2015). An introduction to statistical methods and data analysis. Ontario, CA: Nelson Education.
Patnaik, M. R. P., & Chopdar, M. P. (2017). Green Marketing: An innovative step towards Sustainable Development. Journal of Cleaner Production 141: 385-393
Patnaik, M. R. P., & Chopdar, M. P. (2019). Green Marketing: An innovative step towards Sustainable Development. Journal of environmental Planning and Management 62(13)
Patnaik, M.R., & Chopdar, M. P. (2013). Green Marketing: An Innovative step towards Sustainable Development. International Journal of Remote Sensing and GIS ,2 (3): 80-91.
Prakash, A., & Kollman, K. L. (2012). Biopolitics in the EU and the US: A Race to the Bottom or Convergence to the Top? International Studies Quarterly, 47(4): 617-641.
Sarkis, J., Gonzalez-Torre, P., & Adenso-Diaz, B. (2010). Stakeholder pressure and the adoption of environmental practices: The mediating effect of training. Journal of Operations Management, 28 (2): 163-176.
Sarkis, J., Zhu, Q., & Lai, K. H. (2011). An organizational theoretic review of green supply chain management literature. International Journal of Production Economics, 130 (1): 1-15.
Scott, A. J. (1992). The Roepke lecture in economic geography the collective order of flexible production agglomerations: Lessons for local economic development policy and strategic choice. Economic Geography, 12(2): 309-350.
Sherman, E., Mathur, A., & Smith, R. B. (2017). Store environment and consumer purchase behavior: mediating role of consumer emotions. Psychology & Marketing, 14(4): 361-378.
Shqipe, G., Gadaf, R., & Veland, R. (2013). Innovation strategies and competitive advantage. South East European University, 8(1)): 18-23
Thomas, J. R., Silverman, S., & Nelson, J. (2015). Research methods in physical activity, Champaign, Illinois: Human kinetics.
Uy, M. A., Chan, K. Y., Sam, Y. L., Ho, M. H. R., & Chernyshenko, O. S. (2015). Proactivity, adaptability and boundaryless career attitudes: The mediating role of entrepreneurial alertness. Journal of Vocational Behavior, 86: 115-123.
Vainikka, B. (2015). Psychological factors influencing consumer behaviour. The Journal of Consumer Research 14: 189-199
Were, A. (2016). Manufacturing in Kenya. Features, Challenges and Opportunities. International Journal of Science, Management and Engineering, 4(6): 15-26.
World Health Organization, (2018). How air pollution is destroying our health. Retrieved 23rd, March 2020 from; https://www.who.int/airpollution/news-and-events/how-air-pollution-is-destroying-our-health
Wu, S. I., & Chen, Y. J. (2014). The impact of green marketing and perceived innovation on purchase intention for green products. International Journal of Marketing Studies, 6(5): 81.
Yu, Y. T., & Dean, A. (2017). The contribution of emotional satisfaction to consumer loyalty. International journal of service industry management, 12(3): 34-42.
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Published
2024-09-05
How to Cite
Jepngetich, N. ., Mukulu, P. E., & Mailu , . J. . (2024). INFLUENCE OF ENTREPRENEURIAL GREEN CONSUMER DEMAND ON INNOVATION PERFORMANCE OF MANUFACTURING SMES IN NAIROBI, KENYA. African Journal of Emerging Issues, 6(13), 104–124. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/661
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