International Journal of Social Science & Economic Research
Submit Paper

Title:
INFLUENCE OF INNOVATIVENESS ON THE PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING ENTERPRISES IN NAIROBI CITY COUNTY

Authors:
Teresa Muthoni Thuita , Dr. Gilbert Mugambi Miriti and Dr. Rael Nkatha Mwirigi

|| ||

Teresa Muthoni Thuita1 , Dr. Gilbert Mugambi Miriti2 and Dr. Rael Nkatha Mwirigi3
1,2,3. Department of Business Administration, Chuka University, Kenya

MLA 8
Thuita, Teresa Muthoni, et al. "INFLUENCE OF INNOVATIVENESS ON THE PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING ENTERPRISES IN NAIROBI CITY COUNTY." Int. j. of Social Science and Economic Research, vol. 8, no. 2, Feb. 2023, pp. 309-322, doi.org/10.46609/IJSSER.2023.v08i02.009. Accessed Feb. 2023.
APA 6
Thuita, T., Miriti, D., & Mwirigi, D. (2023, February). INFLUENCE OF INNOVATIVENESS ON THE PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING ENTERPRISES IN NAIROBI CITY COUNTY. Int. j. of Social Science and Economic Research, 8(2), 309-322. Retrieved from https://doi.org/10.46609/IJSSER.2023.v08i02.009
Chicago
Thuita, Teresa Muthoni, Dr. Gilbert Mugambi Miriti, and Dr. Rael Nkatha Mwirigi. "INFLUENCE OF INNOVATIVENESS ON THE PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING ENTERPRISES IN NAIROBI CITY COUNTY." Int. j. of Social Science and Economic Research 8, no. 2 (February 2023), 309-322. Accessed February, 2023. https://doi.org/10.46609/IJSSER.2023.v08i02.009.

References

[1]. Ali, A., & Ali, A. (2014). Entrepreneurial Orientation and Performance of Women Owned and Managed Micro and Small Enterprises in Somalia. ZENITH International Journal of Multidisciplinary Research, 4(1), 25-36.
[2]. Al?Hakim, L., & Hassan, S. (2013). Knowledge Management Strategies, Innovation, And Organizational Performance: An Empirical Study of the Iraqi MTS. Journal of Advances in Management Research.
[3]. Atalay, M., Anafarta, N., &Sarvan, F. (2013). The relationship between innovation and firm performance: Empirical evidence from Turkish automotive supplier industry. Procedia-social and behavioral sciences, 75, 226-235.
[4]. Avlonitis, G., &Salavou, H. (2007). Entrepreneurial Orientation of SMEs, Product Innovativeness, and Performance. Journal of Business Research, 60(5), 566-575.
[5]. Baba, R., & Elumalai, S. (2011). Entrepreneurial orientation of SMEs in Labuan and its effects on performance. Faculty of Economics and Business (UNIMAS).
[6]. Behn, R. D. (2003). Why measure performance? Different purposes require different measures. Public administration review, 63(5), 586-606.
[7]. Brettel, M., &Rottenberger, J. (2013). Examining the Link Between Entrepreneurial Orientation and Learning Processes in Small and Medium?Sized Enterprises. Journal of Small Business Management, 51(4), 471-490.
[8]. Callaghan, C. (2009). Entrepreneurial Orientation and Entrepreneurial Performance of Central Johannesburg Informal Sector Street Traders (Doctoral Dissertation).
[9]. Covin, J., & Wales, W. (2012). The Measurement of Entrepreneurial Orientation. Entrepreneurship Theory and Practice, 36(4), 677-702
[10]. Covin, J., & Miller, D. (2014). International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions. Entrepreneurship Theory and Practice, 38(1), 11-44.
[11]. Gathenya, J. (2011). Entrepreneurial Strategic Planning Practices and Firm Performance Among Women-Led Small and Medium Enterprises in Kenya (Doctoral Dissertation).
[12]. Government of Kenya. (2015). Mwongozo The Code of Governance for State Corporations (Vol. 1).
[13]. Lumpkin, G., & Dess, G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of management Review, 21(1), 135-172.
[14]. Khalili, H., & Fazel, A. (2013). The influence of entrepreneurial orientation on innovative performance: Study of a petrochemical company in Iran. Journal of Knowledge-based Innovation in China.
[15]. Kimani, E. (2016). Effect of adoption of Financial Innovation on Performance of small and medium Enterprises in Kenya.
[16]. Kimberly, J., &Evanisko, M. (1981). Organizational innovation: The influence of individual, organizational, and contextual factors on hospital adoption of technological and administrative innovations. Academy of Management Journal, 24(4), 689-713.
[17]. Kirungu, K. H. (2012). An Investigation of Possible Constraints to Efficient Management of the Supply Chain in Government Hospitals. A Case Study for Kenyatta National Hospital. Mombasa: Government Training Institute.
[18]. Kithaka, J. (2016). Influence of Entrepreneurial Orientation on Firm Performance Among Small and Medium Enterprises in the Automobile Industry in Nairobi County, Kenya (Doctoral dissertation, University of Nairobi).
[19]. Kraus, S., Pohjola, M., &Koponen, A. (2012). Innovation in family firms: an empirical analysis linking organizational and managerial innovation to corporate success. Review of Managerial Science, 6(3), 265-286.
[20]. Lakhani, K., & Wolf, R. (2003). Why hackers do what they do: Understanding motivation and effort in free/open-source software projects. Open-Source Software Projects (September 2003).
[21]. Lamine, K., &Lakhal, L. (2018). Impact of TQM/Six Sigma practices on company’s performance: Tunisian context. International Journal of Quality & Reliability Management.
[22]. Lim, J., & Lee, K. (2019). Employment effect of innovation under different market structures: Findings from Korean manufacturing firms. Technological Forecasting and Social Change, 146, 606-615.
[23]. Lin, C., & Ho, Y. (2008). An empirical study on logistics service providers' intention to adopt green innovations. Journal of technology management & innovation, 3(1), 17-26.
[24]. Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791
[25]. Morrish, S. C., Miles, M. P., & Polonsky, M. J. (2011). An exploratory study of sustainability as a stimulus for corporate entrepreneurship. Corporate social responsibility and environmental management, 18(3), 162-171.
[26]. Mutuku, V. (2016). Relationship Between Entrepreneurial Orientation and Performance of Five Star Hotels in Nairobi, Kenya (Doctoral dissertation, University of Nairobi).
[27]. Mutunga, S., &Minja, D. (2014). Generic strategies employed by food and beverage firms in Kenya and their effects on sustainable competitive advantage. International Journal of Business and Management Review, 2(6), 1-15.
[28]. Mwaura, A., Gathenya, J., &Kihoro, J. (2015). Dynamics of entrepreneurial orientation on the performance of women owned enterprises in Kenya.
[29]. Neely, A., Adams, C., & Kennerley, M. (2002). The performance prism: The scorecard for measuring and managing business success. London: Prentice Hall Financial Times.
[30]. Onyango, F., &Ngahu, S. (2018). Influence of working capital management on financial distress in hospitality industry (a study of four- and five-star hotels in Nairobi County). IOSR Journal of Economics and Finance, 9(3), 52-59.
[31]. Pycraft, M., Singh, H., Phihlela, K., Slack, N., Chambers, S., & Johnston, R. (2010). Operations management: global and Southern African perspectives. Cape Town: Pearson Education.
[32]. Rauch, A., Wiklund, J., Lumpkin, G., &Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship theory and practice, 33(3), 761-787.
[33]. Richard, P., Devinney, T., Yip, G., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of management, 35(3), 718-804.
[34]. Ritala, P., &Hurmelinna?Laukkanen, P. (2013). Incremental and radical innovation in coopetition—The role of absorptive capacity and appropriability. Journal of Product Innovation Management, 30(1), 154-169.
[35]. Rotich, A. K., &Wanjau, K. (2017). The effects of Relationship banking and entrepreneurial orientation on financial performance of manufacturing firms in Kenya. KCA Journal of Business Management, 8(1), 59-73.
[36]. Schumpeter, J. (1942). Creative destruction. Capitalism, Socialism and Democracy, 825, 82-85.
[37]. Venkatraman, N., &Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, 11(4), 801-814.
[38]. Wang, C. (2008). Entrepreneurial Orientation, Learning Orientation, and firm Performance. Entrepreneurship Theory and Practice, 32, 635–657
[39]. Wang, C., Lu, I., & Chen, C. (2008). Evaluating firm technological innovation capability under uncertainty. Technovation, 28(6), 349-363.
[40]. Wiklund, J., & Shepherd, D. (2005). Entrepreneurial Orientation and Small Business Performance: A Configurational Approach. Journal of Business Venturing, Vol. 20 No.1, pp.71-91.
[41]. World Bank Group. (2013). Global financial development report 2014: Financial inclusion (Vol. 2). World Bank Publications.
[42]. World Bank. (2018). Poverty and shared prosperity 2018: Piecing together the poverty puzzle.
[43]. Wu, J. H., Tennyson, R. D., Hsia, T. L., & Liao, Y. W. (2008). Analysis of E-learning innovation and core capability using a hypercube model. Computers in Human Behavior, 24(5), 1851-1866.
[44]. Yoon, H., Kwak, K., &Seo, R. (2012). The effects of global entrepreneurship and social capital within supply chain on the export performance. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 7(3), 1-16.
[45]. Zerenler, M., Hasiloglu, S., &Sezgin, M. (2008). Intellectual capital and innovation performance: empirical evidence in the Turkish automotive supplier. Journal of technology management & innovation, 3(4), 31-40.

ABSTRACT:
Increase in global competition, ever-changing technologies and unstable business environment as a result of globalization, market liberalization and Covid 19 impact on businesses, have made firms search for other means of survival and growth. Food and beverage manufacturing enterprises are also experiencing these challenges. This is demonstrated by the decrease in contribution to GDP, ranging from 13.6% in the early 1990s to 7.6% in 2020, thereby raising doubt on whether the sector is capable to meet the goals of Vision 2030. Different studies around the world have suggested the adoption of entrepreneurial practices as part of the solution. However, the findings of these studies have been inconclusive. The objective of this study was to establish the influence of Innovativeness on performance of food and beverage manufacturing enterprises in Nairobi City County. Descriptive survey research design was adopted. The target population was one hundred and thirty-eight food and beverage manufacturing firms registered under KAM by 2020. A census was conducted and data was obtained using a questionnaire. Data was analyzed using simple and multiple regression analysis with the help of SPSS version 25.0. Hypothesis was tested using t-statistic at 5% significance level. The study found that innovativeness had a positive influence on performance (regression coefficient 0.446, p-value of 0.000). The study recommends that firms should assess their ability to embrace new ideas and processes that will lead to development of new products, services, markets or technologies. Innovativeness plays an essential role in doing away with challenges associated with businesses.

IJSSER is Member of