Influence of Process Innovation Strategy on Performance of Large Manufacturing Firms in Kenya
DOI:
https://doi.org/10.53819/81018102t2596Abstract
The manufacturing sector is a critical contributor to Kenya's economic development, yet faces significant performance challenges with growth rates consistently lagging behind the broader economy. This study examined the influence of process innovation strategy on performance of large manufacturing firms in Kenya, utilizing Organizational Control Theory as the theoretical foundation. A descriptive survey and correlational research design was employed, targeting 50 large manufacturing firms listed by the Kenya Association of Manufacturers, with a sample of 109 management level employees selected through stratified random sampling. Primary data was collected using structured questionnaires, achieving a 90% response rate with 98 usable responses. Data analysis employed descriptive statistics, Pearson correlation analysis, and simple linear regression using SPSS version 23. The findings revealed that process innovation strategy has a significant positive influence on firm performance (β = 0.315, p < 0.05), with the model explaining 56.5% of the variance in organizational performance (R² = 0.565). The standardized beta coefficient of 0.752 indicated a strong positive relationship between process innovation strategy and performance, while correlation analysis confirmed a significant association (r = .752, p = 0.020). The study concluded that manufacturing firms implementing continuous process improvements, system upgrades, and production technique changes achieve superior performance outcomes compared to those maintaining traditional operational approaches. The research recommends that management prioritize systematic process innovation initiatives, government develop supportive innovation policies, and academic institutions incorporate process innovation modules in business curricula to enhance manufacturing sector competitiveness and contribute to Kenya's economic development objectives.
Keywords: Process innovation strategy, organizational performance, manufacturing firms, Kenya, operational efficiency
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