THE RELATIONSHIP BETWEEN PROCESS INNOVATIVE STRATEGIES AND PERFORMANCE OF KENYA TEA DEVELOPMENT AGENCY FACTORIES IN KENYA
Abstract
Kenya Tea Development Agency’s primary role is to collect plucked tea, process and market tea products on behalf of farmers. Despite the crucial role it plays in Kenya’s economy, the tea sector still faces various challenges such as high cost of production, fluctuations in the international market and emerging issues such as COVID-19 pandemic. To effectively improve the performance of the tea industry, product innovative strategy practices are widely acknowledged for improving productivity and competitiveness in the sector. This study examined process innovative strategies and performance of KTDA factories in Kenya. It was premised on Schumpeterian theory of innovation and Discovery theory. A correlational and cross-sectional research design was adopted in this study. The target population was 974 employees from 71 KTDA factories in Kenya. A sample of 283 respondents was drawn from four regions using a stratified sampling method. The main instrument of data collection was a semi-structured questionnaire administered to top, middle, and lower-level employees of KTDA factories in Kenya. The questionnaire was pre-tested to ensure its validity and reliability. An aggregate Cronbach Alpha coefficient of 0.901 was obtained. Multiple linear regression and model was employed to determine the significance of the hypothesis. The findings revealed that process innovative strategies (β= 0.530, R=0.711, p<0.05), had a positive and significant relationship with performance of KTDA. The study recommended that stakeholders and interested parties in the industry should make policies that goes toward operationalizing process innovative strategies. The study also recommended improving infrastructure in tea processing for improved tea products. The findings might be useful to the industry stakeholders in formulating process innovative strategies that would help improve their fortunes.
Key Words: Process Innovative Strategies, Organization Performance, Tea Industry
CITATION: Koech, C. D., Bett, A., & Langat L. (2022). The relationship between process innovative strategies and performance of Kenya Tea Development Agency factories in Kenya. The Strategic Journal of Business & Change Management, 9 (1), 198 – 205.Full Text:
PDFReferences
Carayannis, E. G., & Ziemnowicz, C. (Eds.). (2007). Rediscovering Schumpeter: creative destruction evolving into" Mode 3". Palgrave Macmillan.
El-Kassar, A., & Singh, S. (2019). Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices. Technological Forecasting and Social Change, 144, 483-498.
Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effects of innovation types on firm performance. International Journal of Production Economics, 133(2), 662-676.
Hamid, M., Abdul, S., Hosna, A., Waliul, H., & Kamruzzaman, M. (2020). Impact of Coronavirus (COVID-19) and Employees' Reaction to Changes on Employee Performance of Bangladesh. The International Journal of Business and Management, 8(8); 34-43.
Honarpour, A., Jusoh, A., & Nor, K. (2012). Knowledge management, total quality management and innovation: A new look. Journal of Technology Management & Innovation, 7(3), 22-31.
Levinthal, D. 1997. Adaptation on Rugged Landscapes. Management Science, 43(7): 934- 950.
Martin, M., & Namusonge, M. (2014). Influence of innovation on small and medium enterprise (SME) growth. International Journal for Innovation Education and Research, 2(5), 31-41.
Minai, M., & Lucky, E. (2011). The Conceptual Framework of the Effect of Location on Performance of Small Firms. Asian Social Science, 7(12), 110-117.
Nguyen, C. V. (2009). Measuring the Impact of Cash Crops on Household Expenditure and Poverty in Rural Viet Na: Asia-Pacific Development Journal Vol. 16, No. 2, December 2009
Njeri, A. (2017). Effects of innovation strategy on firm performance in telecommunications industry: A case of Safaricom Kenya Limited. Kenya: Doctoral Dissertation, United States International University-Africa.
OECD. (2005). The measurement of scientific activities: Proposed guideline for collecting and interpreting technological innovation data. doi: dataoecd/35/61/2367580
Peters, G. (2008). From production-based to consumption-based national emission. Ecological Economics, 65(1), 13-23.
Rosli, M., & Sidek, S. (2013). The Impact of Innovation on the Performance of Small and Medium Manufacturing Enterprises: Evidence from Malaysia. Journal of Innovation Management in Small & Medium Enterprises, 1(1), 12-34.
Saunders, M., Lewis, P., & Thornhill, A. (2011). Research Methods for Business Students 6th Ed. Harlow: Pearson.
Schumpeter, J. (1939). Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process. New York, NY: McGraw-Hill.
Sintset, G., Nekoumanesh, S., & Yang, M. (2013). Process Innovation: Impacts on organization's performance. Sweden: Unpublished Linnaeus University.
Suroso, E., & Azis, Y. (2015). Defining mainstreams of innovation: A literature review. International Conference on Economics and Banking (p. 15). USA: Atlantis Press.
DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2173
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.