Influence of Organization Innovation on the Performance of Small and Medium Women-Owned Enterprises in Kenya

Authors

  • Caroline Kaua Kiende Jomo Kenyatta University of Agriculture and Technology
  • Elegwa Mukulu Jomo Kenyatta University of Agriculture and Technology
  • Romanus Odhiambo Meru University, Meru, Kenya

Abstract

Entrepreneurs have realized the need for enhanced performance through continuous innovation in today competitive business environments. To enhance performance, an enterprise has the capability of achieving a competitive advantage by possessing resources and capabilities that are valuable, unique and difficult to imitate by others However, in Kenya statistics show that SMEs are not innovative leading to dismal performance. Women-owned SMEs have important contributions to make to innovation and development of the Kenyan economy. Women-owned SMEs have important contributions to make to innovation and development of the Kenyan economy. Whereas previous research has been on types of innovation there is a dearth of empirical studies focusing on women-owned SMEs and more women in manufacturing. Therefore, the objective of this study was to assess the influence of organization innovation on performance of small and medium women-owned enterprise in Kenya. The study was guided by an epistemological research philosophy adopting a positivist research paradigm. The research design was cross-sectional survey design using both quantitative and qualitative approaches. The target population for this study was 5,362 registered women owned enterprises registered with the County Government of Nairobi by December 2017 and the sample size was 358 respondents. The study results revealed that organizational innovations had a positive and significant influence on performance of women owned enterprises in Kenya. The study concluded that organizational innovations that enhance organization efficiency and effectiveness in its internal operations give small and medium size enterprises and competitive edge over other sector plays. The study recommended that the study recommended that small business owners must optimizes their operations in terms of adoption of innovations that create a competitive edge in the performance of the organization.

Keywords: Organization innovation, Performance of Women-Owned Small and Medium Enterprise

Author Biographies

Caroline Kaua Kiende, Jomo Kenyatta University of Agriculture and Technology

PhD Candidate

Elegwa Mukulu, Jomo Kenyatta University of Agriculture and Technology

Principal, College of Human Resource Development

Romanus Odhiambo, Meru University, Meru, Kenya

Vice Chancellor

References

Akinwale, Y.O., Adepoju, A.O., & Olomu, M.O. (2017). The impact of technological innovation on SME’s profitability in Nigeria. International Journal of Research, Innovation and Commercialization, 1 (1), 74-79.

Al-Ansari, Y., Pervan, S.M. & Xu, J. (2013). Innovation and business performance of SMEs: the case of Dubai", Education, Business and Society: Contemporary Middle Eastern Issues, 6 (3/4), 162-180

Balkiene, K., & Jagminas, J. (2010). Allusion to public policy: innovative entrepreneurship.

Viesoji Politika Ir Administravimas, 34(2), 32-36

Bartholomew, D. J., Knott, M., & Moustaki, I. (2011). Latent variable models and factor analysis: A unified approach. Chichester, West Sussex: Wiley.

Casadesus-Masanell, R., & Zhu, F. (2013). Business model innovation and competitive imitation: The case of sponsor-based business models. Strategic Management Journal, 34(4), 464–482.

Chesbrough, H. (2010). Business Model Innovation: Opportunities and Barriers. Long Range Planning, 43(2–3), 354–363.

Cliff, J. E. (1998). Does one size fit all? Exploring the relationship between attitudes towards growth, gender, and business size. Journal of Business Venturing, 13 (6), 523-542.

Du Plessis, M. (2012). Understanding a firm's openness decisions in innovation. Journal of Business Research, 65(3), 438-445.

Foster, D.D. (2016). Women Entrepreneurs: Keys to Successful Business Development and Sustainability beyond Five Years. Unpublished doctoral dissertation. Walden University- USA. Retrieved on December 18, 2018.

Foster, T. (2016). Why business models are important in entrepreneurship research: What we have learned and where do we go from here? Bergen, Norway: Norwegian School of Economics.

Garson., D. (2012). Hierarchical Linear Modeling: Guide and Application. London, Sage.

Gavrea, C., Ilies, L., & Stegerean, R. (2011). Determinants of organizational performance: The case of Romania. Management & Marketing, 6(2), 285.

Gupta, A. (2013). Firm Growth and its Determinants. Journal of Innovation and Entrepreneurship, 2 (1), 1-5.

Hassan,M., Shaukat, S., Nawaz,M.S., & Naz,S. (2013).Effects of Innovation Types on

Firm Performance: An Empirical Study on Pakistan’s Manufacturing Sector. Pakistan Journal of Commerce and Social Sciences,7(2)243-262.

Hsu, D.H., & Ziedonic, R.H. (2013). Resources as dual sources of advantage: implications for valuing entrepreneurial-firm patents, Strategic Management Journal, 34 (7), 761-781.

Katua, N. (2014). The role of SMEs in employment creation and economic growth in selected countries. International Journal of Education and Research, 12(2), 461-472

Kiraka, R. N., Kobia,M.,& Katwalo, M.(2013). Micro, Small and Medium Enterprise Growth and Innovation in Kenya: A Case Study on the Women Enterprise Fund. Nairobi, Trust Africa.

Littunen, Q. (2006). Profitability of small and medium-sized enterprises in high-tech industries: The case for biotechnology industry. Strategic Management Journal, 2 (4), 6-8.

Makayenza, C., & DZvuke, G. (2015). The influence of innovation on the performance of small and medium enterprises in Zimbambwe. Journal of African Business 16(1).1-2

Minniti, M., & Naudé, W.A. (2010). What Do We Know about the Patterns and Determinant of Female Entrepreneurship across Countries? European Journal of Development Research, 1 (2), 1-17.

MSME Basic report, (2016). Micro, Small and Medium Establishment (MSME) Survey. Nairobi, National Bureau of Statistics.

Mwangi, S.M. (2014). Influence of innovation on small and medium enterprise (SME) growth-a case of garment manufacturing industries in Nakuru County. International Journal for Innovation Education and Research, 2, (6), 101-107

Mwangi, S.M., & Namusonge, R.J. (2014). Influence of Innovation on Small and Medium Enterprise (SME) Growth- A Case of Garment Manufacturing Industries in Nakuru County. International Journal for Innovation Education and Research, 2 (6), 2-4.

Naudé, W. (2013). Entrepreneurship and economic development: Theory, evidence and policy. Evidence and Policy. IZA Discussion Paper, (7507). Retrieved on October 15, 2016 from http://papers.ssrn.com.

Ndesaulwa, A. P., & Kikula, J. (2016). The Impact of Innovation on Performance of

Small and Medium Enterprises (SMEs) in Tanzania: A Review of Empirical Evidence.

Journal of Business and Management Sciences 4 (1), 1-6.

Njenga, A. M. (2015). Organizational Innovation and operational performance of small and medium enterprises in Nairobi City County. Unpublished doctoral dissertation, School of Business, University of Nairobi, Kenya. Retrieved on December 13,2018.

O’Brien, R.M. (2007), “A Caution Regarding Rules of Thumb for Variance Inflation Factors,” Quality & Quantity, 41(5), 673-690.

Orodho, J.A. (2008). Techniques of writing research proposals & reports in education and social sciences. Nairobi: Kanezja HP Entreprises.

Orser, B., & Hogarth-Scott, S. (2003). Opting for growth: Gender dimensions of choosing enterprise development. Canadian Journal of Administrative Sciences, 19 (3), 284-300.

Pallant, J. (2010). SPSS Survival Manual. A step by step guide to data analysis using SPSS (4th ed.). Melbourne: Open University Press.

Price, D.P., Stoica, M., & and Boncella, R.J. (2013). The relationship between innovation, knowledge, and performance in family and non-family firms: an analysis of SMEs. Journal of Innovation and Entrepreneurship 2 (3), 2:14

Rajneesh, A. & Kaur, K. (2014), Knowledge Management and Firm Performance: A Descriptive Study, International Journal of Advance Research in Computer Science and Management Studies, 2 (4), 197-204.

Rauch, A., & Frese, M. (2000). Psychological approaches to entrepreneurial success: A general model and an overview of findings. In C. L. Cooper, & I. T. Robertson, (Eds.), International review of industrial and organizational psychology. 2(13), 101-142.

Rosopa, P. J., Schaffer, M. M., & Schroeder, A. N. (2013). Managing heteroscedasticity in general linear models. Psychological Methods, 18(3), 335-351.

Salim, I. M., & Sulaiman, M. B. (2011). Impact of organizational innovation on firm performance: Evidence from Malaysian-based ICT companies. Business and Management Review, 1 (5), 33-34.

Shisia, A., Sang, W., Matoke, J., & Omwario, B.M. (2014). Strategic Innovation and Performance of Public Universities in Kenya. European Journal of Business and Management, 6 (23), 2-4

Trott, P. (2008). Innovation Management and New Product Development (4th ed.): New York : Financial Times/ Prentice Hall.

Vroom, V. H. (1964). Work and motivation. New York: Wiley.

Wahab, N. A. A., & Jabar, J. Organizational Innovation Strategy Towards Small Medium Enterprise Performance in Malaysia. International Journal of Arts Humanities and Social Sciences, 2 (7), 32-34.

Walobwa, N. D., Ngugi, J. K., & Chepkulei, B. (2013). Effect of the type of innovation on the growth of small and medium enterprises in Kenya: a case of garment enterprises in Jericho, Nairobi. European Journal of Management Sciences and Economics, 1(2), 49- 57.

Downloads

Published

2019-02-14

How to Cite

Kiende, C. K., Mukulu, E., & Odhiambo, R. (2019). Influence of Organization Innovation on the Performance of Small and Medium Women-Owned Enterprises in Kenya. Journal of Entrepreneurship & Project Management, 3(1), 33–49. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-entrepreneurship-proj/article/view/246

Issue

Section

Articles

Most read articles by the same author(s)