DRIVERS OF PRODUCT INNOVATION AMONGST SMALL AND MEDIUM ENTERPRISES IN THE AGRO-BASED MANUFACTURING SECTOR IN KIAMBU COUNTY, KENYA
Abstract
SMEs are one of the major drivers in the socio-economic innovations of any country. The aim of this study was to determine the drivers influencing product innovation amongst Small and Medium Enterprises (SMEs) in Kiambu County. This study was to explore the major factors such as Entrepreneur Characteristics, Firm Characteristics, Level of Resource Mobilization among SME’s and how Customer Relationship Management influence product innovation. The research design was descriptive research design and the target population was two hundred and fifty SMEs based in Kiambu County. Sampling technique for this study was stratified random sampling to select respondents of target population. This study used primary data which was collected by use of questionnaires. Data analysis was done using quantitative methods. The study found that entrepreneurial characteristics had impact on the product innovation of the firm. Effectiveness of enterprise characteristics in contributing towards the ability to improve the available products based on their capability to be transformed into new products. From the study, level of resources mobilization affects the product innovation of the firm. The study found that customer relationship management elements have an impact in motivation of the customers that may result to effective planning of ideas in developing new products in the firm. The study recommended that Small and medium agro based Manufacturing should practice long-term relationship with customers and develop good customer relationship strategies to help SMEs, so that they can be able to deliver the innovative products that required by customers.
Key Words: Entrepreneur Characteristics, Firm’s Characteristics, Resource Mobilization, Customer Relationship Management and Product Innovation
CITATION: Wainuku, S. M., & Karanja, N. (2019). Drivers of product innovation amongst small and medium enterprises in the agro-based manufacturing sector in Kiambu County, Kenya. The Strategic Journal of Business & Change Management, 6 (2), 333 – 347.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1116
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