Operational Innovation, Characteristics, External Environment and Performance of Manufacturing Firms in Kenya

Abstract

Operational innovation influences, the characteristics of the firm and the external environment. The interaction of these factors have contributory effect on the outcome of the firm's performance. Operational innovation encompass innovations in the product, processes, markets, and technologies. For sterling performance, the manufacturing firms must remain at the competitive path by application of innovative technology manifested through markets, processes, and products as well. This particular investigation's objective intended to focus on the performances of Kenyan manufacturing firms and their characteristics, external environment, and operational innovation. The study's objectives were fourfold: evaluate operational innovation’s influence on the success of manufacturing establishments within Kenya; Analyze how firm characteristics affect the link between operational innovation and the performance of Kenya's manufacturing firms.; also determine how the outside environment impact on this relationship.; and identify the combined effect of operational innovation and firm performance in Kenya. Current investigation was founded on positivism criteria since it hinges on scientific laws and theories that make research findings more reliable for generality.. The study was grounded in the descriptive research design, which entailed collecting data from many firms, and therefore, the best approach to increase the reliability of the survey. Companies having active Kenya Association of Manufacturers affiliation (KAM) made up the investigation's universe. The firms were put into 14 subcategories of manufacturing based on the products they manufacture and there were 292 participants in the sample. An important piece of data had to be gathered through assessment, which employed a partially structured survey, which had four classifications providing basic information on the firm; information on aspects of innovation; information on firm characteristics; and information on the external environment. The investigation revealed that the rules and regulations are the guidelines that influence individual pronouncements regarding a firm. Furthermore, the study found that policy consideration is vital for sound decision-making based on firm operations...