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Innovation and SME’S in East Africa, Evidence from Kenya

Published in Innovation (Volume 5, Issue 1)
Received: 16 August 2023     Accepted: 4 September 2023     Published: 11 January 2024
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Abstract

This paper examines innovation in small and medium sized enterprises (SME’S) and develops a comprehensive theoretical framework of how innovation occurs, the end result and the impact on business financial performance focusing on three types of innovations. These are management practice, process, structure or technique that is new to the state of the art and is intended to further organizational and theorization and labeling – that collectively define a model of how management innovation comes about. In its broadest sense, management innovation has of course received considerable research attention over the years. Innovation generally refers to renewing, changing or creating more effective processes, products or ways of doing things. For SME businesses, this means implementing new ideas, creating dynamic products or improving existing services. Innovation can be a catalyst for the growth and success of any business, and can help it adapt and grow in the market place. Being innovative does not mean inventing; innovation can mean changing your business model and adapting to changes in your environment to deliver better products or services. Successful innovation should be an inbuilt part of a particular business strategy and the strategic vision, where the firm creates an environment which leads to innovative thinking and creative problem solving. Innovation is accomplished through effective products, processes, services, technologies or ideas. The process of innovation inorganization’s covers people, process, and technology. Innovation is compounded in SMEs, where issues such as scarce resources and skill shortages must be recognised. Methodology: This is a conceptual paper and draws largely from secondary data, and previous studies done in the area of innovation. Results / Significance: This study contributes to the theoretical basis for understanding organizational innovation in SMEs. The proposed framework is focused and comprehensive, enabling a better understanding of innovation.

Published in Innovation (Volume 5, Issue 1)
DOI 10.11648/j.innov.20240501.16
Page(s) 60-63
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Small and Medium Enterprises (SME’s), Innovation, Management, Business

References
[1] Andreassi, T. (2003). Innovation in small and medium-sized enterprises. International Journal of Entrepreneurship and Innovation Management, 3(1-2), 99-106.
[2] Gebreeyesus, M. (2011). Innovation and microenterprises growth in Ethiopia. Entrepreneurship, innovation, and economic development, (31), 1-30.
[3] Ernst, U. F. (2004). Hidden Sources of Growth? Looking at Microenterprises through the Competitiveness Lens: A Review of Evidence. Accelerated Microenterprise Advancement Project.
[4] Romijn, H. (2002). Small enterprise development in developing countries: Innovation or acquisition of technological capability? Innovation and Small Enterprise in the Third World, 15-47.
[5] Van Dijk, M. P. (2002). Innovation and small enterprise development examples from Burkina Faso, Ghana and Zimbabwe. Innovation and small enterprises in the Third World, 123-40.
[6] Oyelaran-Oyeyinka, O. (2006). Learning to compete in African industry: Institutions and technology in development. Ashgate Publishing, Ltd.
[7] Mahemba, C. M., & Bruijn, E. J. D. (2003). Innovation activities by small and medium-sized manufacturing enterprises in Tanzania. Creativity and innovation management, 12(3), 162-173.
[8] Blaug, M. (1997). The concept of entrepreneurship in the history of economics. In Not Only an Economist (pp. 95-113). Edward Elgar Publishing.
[9] Hyvärinen, L. (1990). Innovativeness and its indicators in small-and medium-sized industrial enterprises. International small business journal, 9(1), 64-79.
[10] Robson, P. J., Haugh, H. M., & Obeng, B. A. (2009). Entrepreneurship and innovation in Ghana: enterprising Africa. Small business economics, 32, 331-350.
[11] Wignaraja, G. (2002). Firm size, technological capabilities and market-oriented policies in Mauritius. Oxford development studies, 30(1), 87-104.
[12] Deraniyagala, S., & Semboja, H. H. (1999). Trade liberalization, firm performance and technology upgrading in Tanzania. The Technological Response to Import Liberalization in Sub-Saharan Africa, 112-147.
[13] Penrose, E. T. (2009). The Theory of the Growth of the Firm. Oxford university press.
[14] Kiggundu, M. N. (2002). Entrepreneurs and entrepreneurship in Africa: What is known and what needs to be done. Journal of developmental entrepreneurship, 7(3), 239.
[15] Khan, A. M., & Manopichetwattana, V. (1989). Innovative and noninnovative small firms: Types and characteristics. Management Science, 35(5), 597-606.
[16] Van Dijk, M. P., & Sandee, H. (Eds.). (2002). Innovation and small enterprises in the Third World. Edward Elgar Pub.
[17] Dijk, M. P. V., & Sverrisson, A. (2003). Enterprise clusters in developing countries: mechanisms of transition and stagnation. Entrepreneurship & Regional Development, 15(3), 183-206.
Cite This Article
  • APA Style

    Mugwika, G. R. (2024). Innovation and SME’S in East Africa, Evidence from Kenya. Innovation, 5(1), 60-63. https://doi.org/10.11648/j.innov.20240501.16

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    ACS Style

    Mugwika, G. R. Innovation and SME’S in East Africa, Evidence from Kenya. Innovation. 2024, 5(1), 60-63. doi: 10.11648/j.innov.20240501.16

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    AMA Style

    Mugwika GR. Innovation and SME’S in East Africa, Evidence from Kenya. Innovation. 2024;5(1):60-63. doi: 10.11648/j.innov.20240501.16

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  • @article{10.11648/j.innov.20240501.16,
      author = {Gatobu Rintaugu Mugwika},
      title = {Innovation and SME’S in East Africa, Evidence from Kenya},
      journal = {Innovation},
      volume = {5},
      number = {1},
      pages = {60-63},
      doi = {10.11648/j.innov.20240501.16},
      url = {https://doi.org/10.11648/j.innov.20240501.16},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.innov.20240501.16},
      abstract = {This paper examines innovation in small and medium sized enterprises (SME’S) and develops a comprehensive theoretical framework of how innovation occurs, the end result and the impact on business financial performance focusing on three types of innovations. These are management practice, process, structure or technique that is new to the state of the art and is intended to further organizational and theorization and labeling – that collectively define a model of how management innovation comes about. In its broadest sense, management innovation has of course received considerable research attention over the years. Innovation generally refers to renewing, changing or creating more effective processes, products or ways of doing things. For SME businesses, this means implementing new ideas, creating dynamic products or improving existing services. Innovation can be a catalyst for the growth and success of any business, and can help it adapt and grow in the market place. Being innovative does not mean inventing; innovation can mean changing your business model and adapting to changes in your environment to deliver better products or services. Successful innovation should be an inbuilt part of a particular business strategy and the strategic vision, where the firm creates an environment which leads to innovative thinking and creative problem solving. Innovation is accomplished through effective products, processes, services, technologies or ideas. The process of innovation inorganization’s covers people, process, and technology. Innovation is compounded in SMEs, where issues such as scarce resources and skill shortages must be recognised. Methodology: This is a conceptual paper and draws largely from secondary data, and previous studies done in the area of innovation. Results / Significance: This study contributes to the theoretical basis for understanding organizational innovation in SMEs. The proposed framework is focused and comprehensive, enabling a better understanding of innovation.
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     year = {2024}
    }
    

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Author Information
  • School of Business and Economics, Meru University of Science & Technology (MUST), Meru, Kenya

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