Innovation and Micro and Small Enterprises Growth Performance: Evidence from Kenya
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 10
Abstract
The role that innovation can play towards the growth and survivalof an enterprise continues to gain credence as better indicators of enterprise innovativeness come to the fore. In spite of this growing body of knowledge, micro and small enterprises in Kenyacontinue to experience high mortality rate. This paper used World BankEnterprise Survey data for Kenya to probe whether innovative micro and small enterprisesare indeed associated with better growth performance. The study used a qualitative analysis using a descriptive analysis and t-test for mean differences to compare innovative and non-innovative micro and small enterprises. The results show that there was no statistically significant relationship between a micro and small enterprise’s growth performance and its innovativeness. Innovative micro and small enterprises were, however, found to have invested relatively higher resources towards innovation inputs and hiring of advanced human skills. They also participated in export trade. The results seems to suggest that innovative micro and small enterprises’ investment were either too marginal to make a difference or the investments dissipated along the innovation chain.
Authors and Affiliations
Peter Njiraini PhD, Jacob Omolo, PhD, Paul Gachanja PhD
Keywords
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- EP ID EP412988
- DOI 10.9790/487X-2010010916.
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