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

著者

  • 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.readerDisplayName##:

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

キーワード:

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

要旨

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

著者略歴

  • 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.

参考文献

Abur, C. (2020). Infrastructure deficit and the performance of small and medium-sized enterprise in the post COVID-19 Nigerian economy. International Journal of Advanced Studies in Business Strategies and Management, 8(1), 1–11. Retrieved from https://internationalpolicybrief.org/wp-content/uploads/2023/10/ARTICLE1-102.pdf

Babbie, E. (1973). Survey research methods. Wadsworth Publishing. Retrieved from https://books.google.ro/books/about/Survey_Research_Methods.html?id=EhtHAAAAMAAJ&redir_esc=y

Chege, C. G. K., Onyango, K. O., Lundy, M. M., & Kabach, J. (2023). Small and medium enterprises (SMEs) disrupt food systems to deliver healthy diets to urban consumers: Twiga case study, Nairobi, Kenya. Retrieved from https://cgspace.cgiar.org/items/595c7219-3c9d-41f0-bdb4-61a3d1430f08

Chege, R. W., Mukulu, E., & Senelwa, A. (2025). Marketing innovation and competitiveness of food and beverage manufacturing firms in Nairobi City County, Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 9(1). Retrieved from https://sagepublishers.com/index.php/ijssme/article/download/854/768

Du, J., & Cai, Z. Q. (2020). The impact of venture capital on the growth of small-and medium-sized enterprises in agriculture. Journal of Chemistry, 2020(1). https://doi.org/10.1155/2020/2328171

Georgiev, S., & Ohtaki, S. (2020). Critical success factors for TQM implementation among manufacturing SMEs: Evidence from Japan. Benchmarking: An International Journal, 27(2), 473–498. https://doi.org/10.1108/BIJ-01-2019-0037

Grillitsch, M., Hansen, T., & Madsen, S. (2020). How novel is transformative innovation policy? Retrieved from https://www.keg.lu.se/en/markus-grillitsch/publication/5f7c9f2a-ad14-48e6-a1a0-85a54d9cdf63

Isaiah, O. S., & Dickson, R. K. (2024). New venture dynamics: A creative destruction model for economic development. https://doi.org/10.35409/IJBMER.2024.3560

Kenya Association of Manufacturers. (2023). Kenya Association of Manufacturers sector report.

Kazeem, B. M. (2020). A critical study of performance management practices in Western Nigerian manufacturing SMEs. https://pure.beds.ac.uk/ws/portalfiles/portal/18559226/file

Kenya National Bureau of Statistics. (2023). Economic survey 2023. Government Printer. Retrieved from https://www.knbs.or.ke/reports/2023-economic-survey/

Kenya National Bureau of Statistics. (2024). Economic survey 2024. Government Printer. Retrieved from https://www.knbs.or.ke/reports/2024-economic-survey/

Ministry of Industrialization, Trade and Enterprise Development. (2020). Kenya Industrial Transformation Programme (KITP) revised strategy. Government Printer.

Munier, F. (2020). Schumpeterian entrepreneur. In Encyclopedia of creativity, invention, innovation and entrepreneurship (pp. 2023–2027). Springer International Publishing. Retrieved from https://link.springer.com/rwe/10.1007/978-3-319-15347-6_243

Okwaro, V. O., King’oo, R., & Kinyanjui, W. (2025). Influence of differentiation strategies on the growth of small and medium enterprises in Makueni County, Kenya. Fluent Publishers, 1(1), 57–76. https://dx.doi.org/10.61426/Sjbcm.v11i4.3109

Omino, J. A. (2023). Enterprise resource planning and business operations of small and medium enterprises in Nairobi, Kenya (Doctoral dissertation, University of Nairobi). Retrieved from https://erepository.uonbi.ac.ke/items/ebc9bd91-2449-49bd-bb2e-e3188bad3796

Schumpeter, J. A. (1934). The theory of economic development. Harvard University Press. Retrieved from https://books.google.ro/books/about/The_Theory_of_Economic_Development.html?id=-OZwWcOGeOwC&redir_esc=y

Namagembe, S., Ryan, S., & Sridharan, R. (2019). Green supply chain practice adoption and firm performance: manufacturing SMEs in Uganda. Management of Environmental Quality: An International Journal, 30(1), 5-35.

Ussif, R., & Salifu, K. (2020). Contributions of small and medium enterprises to economic developments in Sub-Saharan Africa. International Journal of Academic Accounting, 4(3), 63–78. Retrieved from https://www.researchgate.net/publication/341781647_CONTRIBUTIONS_OF_SMALL_MEDIUM_ENTERPRISES_TO_ECONOMIC_DEVELOPMENTS_IN_SUB-SAHARAN_AFRICA

World Bank. (2024). Kenya economic update report. Retrieved from https://www.worldbank.org/en/country/kenya/publication/kenya-economic-update-keu

Yi, H. T., Amenuvor, F. E., & Boateng, H. (2021). The impact of entrepreneurial orientation on new product creativity, competitive advantage and new product performance in SMEs: The moderating role of corporate life cycle. Sustainability, 13(6). https://doi.org/10.3390/su13063586

ダウンロード

発行日

2026-06-03

巻号

巻 10 号 4 (2026)

セクション

Articles