Influence of Innovation on the Growth of Micro and Small Pharmaceutical Enterprises in Kenya


  • Jerusha Njoki Kamau Jomo Kenyatta University of Agriculture and Technology
  • Prof. Patrick Ngugi Karanja Jomo Kenyatta University of Agriculture and Technology



Medium and Small Enterprises (MSEs) are engines of economic development through contribution of jobs and poverty reduction. Currently, the MSE sector in Kenya contributes over 70% of the country’s GDP. Despite this importance, 3 out every five of MSEs in Kenya collapse within 3-5 years of operation leading to loss of jobs, increased poverty and low GDP. Innovation has been termed as one of the most crucial elements in today’s globalized and competitive environment. Remaining competitive in today’s modern world require organizations to pursue innovation the objective of the study was to determine the influence of innovation on growth of   micro and small pharmaceutical enterprises in Kenya. To achieve this objective, a descriptive survey study design shall be adopted. The target population of the study was the pharmaceutical MSEs in Nairobi County.  Random sampling technique was used to get sample size of 30 .The research study adopted a questionnaire as a research data collection instrument.  Both open and closed ended questions shall be used to elicit responses from respondents. The research data collected was analyzed using the statistical package for social scientists software and the results presented using charts and tables. Descriptive statistical data was used for analysis and reporting. The reliability of the test instrument shall be done using Cronbach’s alpha coefficient. Regression analysis was used to establish the relationship between growth and the types of innovation applied in pharmaceutical Mses. The study results were presented through tables and figures. The study concludes that open innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. In addition, the study concludes that process innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. Further, the study concludes that front end innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. The study also concludes that market innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. Based on the results, this study recommends that the management of micro and small pharmaceutical enterprises should encourage open innovation to ensure maximum utilization of resources and minimize wastage. Further, the management of micro and small pharmaceutical enterprises should formulate and implement effective marketing strategies to increase the sales of their firm.

 Keywords: Innovation, Leadership Skills, Pharmaceuticals, Micro and Small Enterprises

Author Biographies

Jerusha Njoki Kamau, Jomo Kenyatta University of Agriculture and Technology

Postgraduate Student

Prof. Patrick Ngugi Karanja, Jomo Kenyatta University of Agriculture and Technology



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How to Cite

Njoki Kamau, J., & Karanja, P. (2022). Influence of Innovation on the Growth of Micro and Small Pharmaceutical Enterprises in Kenya. Journal of Entrepreneurship & Project Management, 6(4), 119–143.