INFLUENCE OF PRODUCT INNOVATION ON THE PERFORMANCE OF COFFEE COOPERATIVES IN KENYA
DOI:
https://doi.org/10.47604/ejbsm.1662Keywords:
Product Innovation, Performance, Coffee CooperativesAbstract
Purpose: The purpose of the study was to assess the influence of product innovation on the performance of coffee cooperatives in Kenya.
Methodology: A descriptive research design was applied. The target population of this study was 525 coffee cooperative societies in Kenya registered with the Commissioner for Cooperatives and licensed by AFFA (Coffee Directorate) as at 30th of October 2016. The sample size was 227 respondents. Structured questionnaires were used to collect primary data from the selected respondents.
Findings: The results of the study revealed that product innovation and performance are positively and significantly related (β=0.631, p=0.002). This indicated that developments of new products are essential for the improvement of the coffee cooperatives' performance.
Unique Contribution to Theory, Policy and Practice: The study recommended adoption of technology for the development of new services, new functions, and formation of new alliances. The study further recommended an organization to employ and develop a high technology for its product in order to determine strategic position to adopt the differentiation position or the cost leadership position. This study is recommended as it will benefit scholars and researchers who will gain insight on the influence of product innovation on performance of coffee co-operatives hence use it as a source of reference for other researches. The results of this study will contribute new knowledge which will provide the government and other stakeholders with better ways of managing co-operatives and improving their production.
Downloads
References
Abernathy, W. J., & Utterback, J. M. (2005). Patterns of industrial innovation. Technology review, 80(7), 40-47.
Akman, G., and Yilmaz, C. (2008). Innovative capability, innovation strategy and market orientation: an empirical analysis in Turkish software industry. International Journal of Innovation Management, 12(01), 69-111.
Antonnet, A. J. (2014). The Effects of Product Innovation on Financial Performance of Commercial Banks in Kenya (Doctoral Dissertation, School of Business, University of Nairobi).
Ardyan, E. (2016). Market sensing capability and SMEs performance: The mediating role of product innovativeness success. Business & Economic Review, 2, 79-97.
Barney, J. (2007). Gaining and sustaining competitive advantage (3rd Edition). Upper Saddle River, N.J: Pearson Prentice Hall
Bijman, J., Muradian, R., & Cechin, A. (2012). Agricultural cooperatives and value chain coordination: Jos Bijman, Roldan Muradian and Andrei Cechin. In Value Chains, Social Inclusion and Economic Development (pp. 98-117). Routledge.
ÄŒirjevskis, A. (2019). The role of dynamic capabilities as drivers of business model innovation in mergers and acquisitions of technology-advanced firms. Journal of Open Innovation: Technology, Market, and Complexity, 5(1), 12.
Clarkson, M. E. (2005). A stakeholder framework for analyzing and evaluating corporate social performance. Academy of management review, 20(1), 92-117.
FAO. Impact of International Voluntary Standards on Smallholder Market Participation in Developing Countries"”A Review of Literature (Agribusiness and Food Industries Series); FAO: Rome, Italy, 2014.
Iddris, F. (2018). Innovation Capability within a Supply Chain Context (Doctoral dissertation, Halmstad University Press).
Jones, T. M., Harrison, J. S., & Felps, W. (2018). How applying instrumental stakeholder theory can provide sustainable competitive advantage. Academy of Management Review, 43(3), 371-391.
Kahn, K. B. (2018). Understanding innovation. Business Horizons, 61(3), 453-460.
Kariuki M. (2016). The Relationship between the Level of Strategic Innovation and Financial Performance of Kenyan Commercial Banks. International Academic Journal of Human Resource and Business Administration, vol. 12(8), 153-187.
Kenya National Statistics Bureau. (2020). Economic Survey 2020.
Mensah, I. (2017). Marketing Innovation and Sustainable Competitive Advantage: A Case of Selected Manufacturing Small and Medium Enterprises in Central Region of Ghana (Doctoral dissertation, Doctoral dissertation, University of Ghana).
Nagy, D., Schuessler, J., &Dubinsky, A. (2016). Defining and identifying disruptive innovations. Industrial Marketing Management, 57, 119-126.
Ngure, F. K., Maina, K. E., & Kariuki, S. N. (2017). Product innovations and financial performance of savings and credit co-operatives societies in Kirinyaga County.
Rahim, F. B. T., & Zainuddin, Y. B. (2019, January). The impact of technological innovation capabilities on competitive advantage and firm performance in the automotive industry in Malaysia. In AIP Conference Proceedings (Vol. 2059, No. 1, p. 020030). AIP Publishing.
Schoemaker, P. J., Heaton, S., & Teece, D. (2018). Innovation, dynamic capabilities, and leadership. California Management Review, 61(1), 15-42.
Schoemaker, P. J., Heaton, S., &Teece, D. (2018). Innovation, dynamic capabilities, and leadership. California Management Review, 61(1), 15-42.
Schumpeter, J. A. (1934). Change and the Entrepreneur. Essays of JA Schumpeter.
Sousa, S., & Aspinwall, E. (2010). Development of a performance measurement framework for SMEs. Total Quality Management, 21(5), 475-501.
Teece, D. J. (2018). Business models and dynamic capabilities. Long range planning, 51(1), 40-49.
Weill, P., & Broadbent, M. (2008). Leveraging the new infrastructure: how market leaders capitalize on information technology. Harvard Business Press.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Peter Ngibuini Kuguru, Prof. Jan-Erik Jaensson, Dr. Kinyanjui Nganga
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
