EFFECT OF PRODUCT INNOVATION ON THE PERFORMANCE OF FOOD AND BEVERAGE SECTOR IN MANUFACTURING SME INDUSTRIES IN NAIROBI COUNTY, KENYA

Autors/ores

  • Bernice Kendi Joy Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
  • Josphat Kwasira Lecturer, Jomo Kenyatta University of Agriculture and Technology Kenya
  • Edward Muiruri Lecturer, Jomo Kenyatta University of Agriculture and Technology Kenya

DOI:

https://doi.org/10.46827/ejefr.v10i4.2231

Paraules clau:

product innovation, performance, food and beverage sector, manufacturing SME industries, Nairobi County

Resum

Small and Medium Enterprises (SMEs) in the food and beverage manufacturing sector play a significant role in Kenya’s economic growth through employment creation, income generation, and industrial development, particularly in Nairobi County. Despite their contribution, many SMEs continue to face challenges related to stiff competition, changing consumer preferences, and limited innovative capacity, which negatively affect their performance. This study sought to examine the effect of product innovation on the performance of the food and beverage sector in manufacturing SME industries in Nairobi County. The study was guided by Schumpeter’s Theory of Innovation and the Resource-Based View (RBV) theory. A descriptive survey research design was adopted, targeting 107 formally registered food and beverage manufacturing SMEs within Nairobi County. The study utilized a census approach where all the SMEs were included in the study. Primary data was collected using structured questionnaires and analyzed using descriptive and inferential statistical techniques, including regression analysis. The findings established that product innovation had a positive and significant effect on the performance of the food and beverage sector in manufacturing SME industries in Nairobi County (β = .181, p = 0.023). The study revealed that SMEs that frequently introduced new products, improved product quality, adopted attractive packaging, and diversified product lines experienced increased sales, customer satisfaction, and market competitiveness. The study concluded that product innovation is a critical driver of performance among food and beverage manufacturing SMEs in Nairobi County. The study recommends that SMEs should continuously invest in research and development, customer-driven product improvements, and innovative product differentiation strategies to enhance their competitiveness and overall organizational performance.

 

JEL: O31, O32, L25, M21, L66

Biografies de l'autor/a

  • Bernice Kendi Joy, Student, Jomo Kenyatta University of Agriculture and Technology, Kenya

    Bernice Kendi Joy is a postgraduate student at the Jomo Kenyatta University of Agriculture and Technology. She holds a Bachelor's degree in Business-related studies and is currently pursuing advanced research in strategic management and innovation. Her research interests include innovation management, small and medium enterprises (SMEs), entrepreneurship, business performance, and organizational competitiveness. Her current research focuses on the role of product innovation in enhancing the performance of manufacturing SMEs in Kenya.

  • Josphat Kwasira, Lecturer, Jomo Kenyatta University of Agriculture and Technology Kenya

    Dr. Josphat Kwasira is a Lecturer at the Jomo Kenyatta University of Agriculture and Technology with extensive experience in business management, entrepreneurship, strategic management, and organizational development. He has supervised numerous postgraduate research projects and published scholarly work in management and enterprise development. His research interests include innovation, entrepreneurship, SME growth, and organizational performance.

  • Edward Muiruri, Lecturer, Jomo Kenyatta University of Agriculture and Technology Kenya

    Dr. Edward Muiruri is a Lecturer at the Jomo Kenyatta University of Agriculture and Technology specializing in business administration, strategic management, and enterprise development. His research focuses on innovation, organizational performance, entrepreneurship, and sustainable business practices. He has participated in various academic research projects and postgraduate supervision activities.

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Descàrregues

Publicat

2026-06-03

Número

Vol. 10 Núm. 4 (2026)

Secció

Articles