Innovation Strategy and Performance of Social Enterprises in Kenya

Abstract

The objective0.of this study0.was to establish the0.effect of innovation strategy on the0.performance of social enterprises in0.Kenya. It was based on social innovation and Schumpeter’s innovation theories. This study adopted a descriptive/cross-sectional0.design. This study targeted the 15000 social enterprises in Kenya with headquarters within the Nairobi County. The study sampled 99 social enterprises in Nairobi calculated through the Yamane formula through stratified random sampling. This0.study adopted primary0.data from the top officials of social enterprises in Kenya using a structured questionnaire. The0.data was analyzed0.using descriptive and regression analysis. Regression analysis was used to establish the0.effect of0.innovation strategy on0.performance of social enterprises. The SPSS software was used in generation of statistics for analysis. From the regression analysis, a strong relationship existed between the innovation strategies (product innovation, process innovation, marketing innovation and organizational innovation) and organizational performance. This was reflected in the R value of 0.661. The model further an R square value of 0.437 indicating that they contributed 43.7% to organizational performance. From the ANOVA table, the F-statistics (15.158) showed a p-value of 0.00< 0.05. This shows that the model was significant. From the descriptive statistics, the study concluded that social enterprises had adopted innovation strategy in their businesses: product, process, marketing and organizational. From the regression coefficients, product innovation had a positive coefficient against organizational performance. Further, Process, marketing and organizational innovation also showed positive regression coefficients. The study concluded that product, process, marketing and organizational innovation has a positive effect on the0.performance of social enterprises in0.Kenya. The study recommended that social enterprises in0.Kenya to increase their levels of product adoptions for them to improve their performance levels. Further, the social enterprises need to increase process innovations; increase their market innovations; and increase their organization related innovations for improved performance. The study also recommends future studies based on other factors influencing performance; other innovative strategies influencing performance; and other organizations other than social enterprises.