INNOVATIVE STRUCTURE AND PERFORMANCE OF MANUFACTURING SMALL AND MEDIUM ENTERPRISES IN KENYA

Main Article Content

Idi Ochieng Juma Masoud
Dr. Jane Omwenga
Dr. Joseph Ndururi, PhD

Abstract

Successful organizations of the future are those who will develop extraordinary skills to innovate in the areas of strategy development and organizational design. Innovation, whether related to products, process, organizational methods, or marketing, is a complex, multidisciplinary activity that involves several areas of a single firm, its clients, and its suppliers (Tafti, Abdolvand, & Harandi, 2019). The study sought to examine the role of innovative structure on performance of SMEs in Kenya. The study applied Organizational Control Theory. The population of the study was manufacturing SMEs in Nairobi City County, Kenya since Nairobi is a cosmopolitan that is home to several manufacturing SMEs. Respondents’ population was 538 manufacturing SMEs in Nairobi City County, Kenya. The top managers were targeted because strategic management issues are mostly handled by top managers of organizations. Stratified sampling was used to pick the sample. The population was stratified based on the sectors. KMA has divided the manufacturing into sectors. The philosophy that guided the research is positivism philosophy. The study used cross-sectional survey design to establish the role of innovation strategy implementation on competitive performance of manufacturing SMEs in Kenya. The study also used both qualitative and quantitative mixed methods. In this research cross sectional survey design was employed. This study used a questionnaire to collect data. A pilot study was conducted to ascertain the research instruments' validity and reliability. Data was analyzed using the Statistical Package for Social Sciences (SPSS) version 25 software. Qualitative data collected was analyzed using thematic analysis and presented in prose form. Quantitative data was analyzed using descriptive statistics and presented in tables and figures. The study also computed correlation and regression analysis to test the relationship between study variables and test the research hypothesis. The study concludes that Innovative structure has a positive and significant effect on the performance of SMEs in Kenya. The study revealed that centralization, integration, and decision-making influence the performance of SMEs in Kenya. This implies that improvement in innovative structure (centralization, integration, and decision-making) would improve the performance of SMEs in Kenya. This study recommends that the management of manufacturing SMEs in Kenya should formulate and implement effective strategies of investing in innovative strategies to increase the SMEs' competitiveness and improve their performance.

Article Details

How to Cite
INNOVATIVE STRUCTURE AND PERFORMANCE OF MANUFACTURING SMALL AND MEDIUM ENTERPRISES IN KENYA. (2024). Journal of Applied Social Sciences in Business and Management, 3(2), 1948-1957. https://grandmarkpublishers.com/index.php/JASSBM/article/view/50
Section
Articles
Author Biographies

Idi Ochieng Juma Masoud, Jomo Kenyatta University of Agriculture and Technology

PhD Student

Dr. Jane Omwenga, Jomo Kenyatta University of Agriculture and Technology

Lecturer

Dr. Joseph Ndururi, PhD, Jomo Kenyatta University of Agriculture and Technology

Lecturer

How to Cite

INNOVATIVE STRUCTURE AND PERFORMANCE OF MANUFACTURING SMALL AND MEDIUM ENTERPRISES IN KENYA. (2024). Journal of Applied Social Sciences in Business and Management, 3(2), 1948-1957. https://grandmarkpublishers.com/index.php/JASSBM/article/view/50

References

Abdi, K., Mardani, A., Senin, A. A., Tupenaite, L., Naimaviciene, J., Kanapeckiene, L., & Kutut, V. (2018). The effect of knowledge management, organizational culture and organizational learning on innovation in automotive industry. Journal of Business Economics and Management, 19(1), 1-19.

Abowitz, D. A., & Toole, T. M. (2010). Mixed method research: Fundamental issues of design, validity, and reliability in construction research. Journal of construction engineering and management, 136(1), 108-116.

Abu Amuna, Y. M., Abu-Naser, S. S., Al Shobaki, M. J., & Abu Mostafa, Y. A. (2019). Fintech: creative innovation for entrepreneurs.

Aksoy, H. (2017). How do innovation culture, marketing innovation and product innovation affect the market performance of small and medium-sized enterprises (SMEs). Technology in Society, 51(4), 133-141.

Awamleh, F., & Ertugan, A. (2021). The relationship between information technology capabilities, organizational intelligence, and competitive advantage. Sage Open, 11(2), 21582440211015201.

Baierle, I. C., Benitez, G. B., Nara, E. O. B., Schaefer, J. L., & Sellitto, M. A. (2020). Influence of open innovation variables on the competitive edge of small and medium enterprises. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 179.

Bilan, Y., Hussain, H. I., Haseeb, M., & Kot, S. (2020). Sustainability and economic performance: Role of organizational learning and innovation. Engineering Economics, 31(1), 93-103.

Chege, S. M., Wang, D., & Suntu, S. L. (2020). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, 26(2), 316-345.

Chen, M.-H., Wang, H.-Y., & Wang, M.-C. (2018). Knowledge sharing, social capital, and financial performance: The perspectives of innovation strategy in technological clusters. Knowledge Management Research & Practice, 16(1), 89-104.

Cui, T., Ye, H. J., Teo, H. H., & Li, J. (2015). Information technology and open innovation: A strategic alignment perspective. Information & management, 52(3), 348-358.

Damanpour, F., & Aravind, D. (2012). Organizational structure and innovation revisited: From organic to ambidextrous structure. In Handbook of organizational creativity (pp. 483-513): Elsevier.

Damanpour, F., & Wischnevsky, J. D. (2006). Research on innovation in organizations: Distinguishing innovation-generating from innovation-adopting organizations. Journal of Engineering and Technology Management, 23(4), 269-291.

Dedahanov, A. T., Rhee, C., & Yoon, J. (2017). Organizational structure and innovation performance: is employee innovative behavior a missing link? Career Development International.

Dogan, E. (2017). A strategic approach to innovation. Journal of Management Marketing and Logistics, 4(3), 290-300.

Duhaylongsod, J. B., & De Giovanni, P. (2018). The impact of innovation strategies on the relationship between supplier integration and operational performance. International Journal of Physical Distribution & Logistics Management.

Esemu, T., & Wood, E. (2014). Innovation and Value Creation in Emerging African Commercial Agriculture: Evidence from the Ugandan Flower Export Sector. In Quality Innovation: Knowledge, Theory, and Practices (pp. 497-521): IGI Global.

Etriya, E., Omta, O., Scholten, V., & Wubben, E. (2020). The importance of entrepreneurship and innovation for smallholder vegetable farmers in West Java, Indonesia.

Fathema, N., Shannon, D., & Ross, M. (2015). Expanding the Technology Acceptance Model (TAM) to examine faculty use of Learning Management Systems (LMSs) in higher education institutions. Journal of Online Learning & Teaching, 11(2).

Frey, B. S., Homberg, F., & Osterloh, M. (2013). Organizational control systems and pay-for-performance in the public service. Organization studies, 34(7), 949-972.

Ghauri, P., Grønhaug, K., & Strange, R. (2020). Research methods in business studies: Cambridge University Press.

Gitau, R. M. (2011). The relationship between financial innovation and financial performance of commercial banks in Kenya. University of Nairobi,

Ho, K. L. P., Nguyen, C. N., Adhikari, R., Miles, M. P., & Bonney, L. (2018). Exploring market orientation, innovation, and financial performance in agricultural value chains in emerging economies. Journal of Innovation & Knowledge, 3(3), 154-163.

Hvolkova, L., Klement, L., Klementova, V., & Kovalova, M. (2019). Barriers hindering innovations in small and medium-sized enterprises. Journal of Competitiveness, 11(2), 51.

Kamau, J. G., Senaji, T. A., Eng, R., & Nzioki, S. C. (2019). Effect of information technology capability on competitive advantage of the Kenyan banking sector. International Journal of Technology and Systems, 4(1), 1-20.

Karlsson, C., & Tavassoli, S. (2016). Innovation strategies of firms: What strategies and why? The Journal of Technology Transfer, 41(6), 1483-1506.

Kim, J., & Choi, S. O. (2020). The intensity of organizational change and the perception of organizational innovativeness; with discussion on open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 66.

Migdadi, M. M. (2019). Organizational learning capability, innovation and organizational performance. European Journal of Innovation Management.

Walker, R. M., Chen, J., & Aravind, D. (2015). Management innovation and firm performance: An integration of research findings. European Management Journal, 33(5), 407-422.

Wang, D. S. (2019). Association between technological innovation and firm performance in small and medium-sized enterprises: The moderating effect of environmental factors. International Journal of Innovation Science.

Waruwu, H., Asbari, M., Purwanto, A., Nugroho, Y. A., Fikri, M. A. A., Fauji, A., . . . Agistiawati, E. (2020). The role of transformational leadership, organizational learning and structure on innovation capacity: Evidence from Indonesia private schools. EduPsyCouns: Journal of Education, Psychology and Counseling, 2(1), 378-397.

Similar Articles

You may also start an advanced similarity search for this article.