Influence of Novelty Centered Business Model Innovations on the Performance of Manufacturing Firms in Kenya
Downloads
Strategic management scholars agree that innovation in business models is essential for long-term survival in challenging commercial environments. The study was designed to determine the influence of novelty centered business model innovation on the Kenyan manufacturing companies’ performance. The study was anchored on diffusion of innovation theory. The study adopted the descriptive research design and positivism philosophy that was aligned to the classical scientific method of research inquiry. Multi-stage sampling method was adopted to collect data from top management team in the manufacturing sector using a semi- structured questionnaire. The data was analysed using descriptive analysis techniques such as mean, percentages and standard deviation. The study established that novelty centered business model innovation positively and significantly influenced manufacturing firms’ performance. The study recommends that manufacturers should endeavour to innovate their business models in order to achieve superior long-term performance. The study findings inform the extent to which novelty centered business model innovation predicts the performance of manufacturing firms.
Downloads
1. Adom, D., Hussein, E.K. & Agyem, J.A. (2018). Theoretical and conceptual framework: mandatory ingredients of a quality research. International Journal of Scientific Research, 7(1), 438-441.
2. Babbie, E. (2016) The Practice of Social Research (14th ed.). Boston, Massachusetts: Cengage Learning.
3. Cochran, W. G. (1963). Sampling Techniques (2nd ed). New York: John Wiley and Sons Inc.
4. Connelly, L. M. (2008). Pilot Studies. Medsurg Nursing, 17(6), 411-413
5. Cucculelli, M., & Bettinelli, C. (2015). Business models, intangibles and firm performance: evidence on corporate entrepreneurship from Italian manufacturing SMEs. Small Business Economics, 45, 329-350.
6. Doody, O., & Doody, C. M. (2015). Conducting a pilot study: Case study of a novice researcher. British journal of nursing, 24(21), 1074-1078.
7. Euchner, J. (2016). Business model innovation. Research-Technology Management, 59(3), 10-11.
8. Foss, N. J., & Saebi, T. (2017). Business models and business model innovation: Between wicked and paradigmatic problems. Long range planning, 51(1), 9-21.
9. Fraser, U., Fahlman, D. W., Arscott, J. & Guillot, I. (2018). Pilot testing for feasibility in a study of student retention and attrition in online undergraduate programs. International Review of Research in Open and Distributed Learning, 19(1), 260-278.
10. Gachanja, I. S., Ng’ang’a, S. I. & Kiganane, L. N. (2020). Influence of organizational learning on innovation output in manufacturing firms in Kenya. International journal of Innovation Studies, 4(1), 16-26. https://doi.org/10.1016/ijis.2020.02.001
11. Hambrick, D. C., Humphrey, S. E., & Gupta, A. (2015). Structural interdependence within top management teams: A key moderator of upper echelons predictions. Strategic Management Journal, 36(3), 449-461.
12. Kenya Association of Manufacturers. (2018). Manufacturing Priority Agenda: Sparking Kenya’s Industrial Transformation for Job Creation. Retrieved from: https://kam.co.ke/kam/wp-content/uploads/2018/02/2018-Manufacturing-Priority-Agenda.pdf.
13. Kenya Association of Manufacturers. (2019). Manufacturing Priority Agenda 2019. Retrieved from: https://kam.co.ke/kam/wp-content/uploads/2019/02/KAM-Priority-Agenda-2019.pdf
14. Kenya Association of Manufacturers (2021). Impact of Covid-19 on the manufacturing sector: one year on. Retrieved from: https://kam.co.ke/wp-content/uploads/2021/07/Impact-of-COVID-19-on-manufacturing-sector-in-Kenya-Final.pdf
15. Kenya Association of Manufacturers. (2021). Kenya Manufacturers and Exporters Directory 2020. Nairobi: Adafric Communications Limited.
16. Kenya Institute for Public Policy Research and Analysis. (2014). Kenya Economic Report 2013: Creating an enabling environment for stimulating investment for competitive and sustainable counties. Nairobi: Government Printer.
17. Kenya Institute for Public Policy Research and Analysis. (2018). Kenya Economic Report 2017: Sustaining Kenya’s Economic Development by Deepening and Expanding Economic Integration in the Region. Nairobi: Government Printer.
18. Kenya National Bureau of Statistics. (2012). Kenya Economic Survey 2011. Nairobi: Government Printer.
19. Kenya National Bureau of Statistics. (2014). Kenya Economic Survey 2013. Nairobi: Government Printer.
20. Kenya National Bureau of Statistics. (2015). Kenya Economic survey 2014. Nairobi: Government Printer.
21. Kenya National Bureau of Statistics. (2016). Kenya Economic Survey 2015. Nairobi: Government Printer.
22. Kenya National Bureau of Statistics. (2018). Kenya Economic Survey 2017. Nairobi: Government Printer.
23. Kenya National Bureau of Statistics. (2020). Kenya Economic Survey 2019. Nairobi: Government Printer.
24. Kenya National Bureau of Statistics. (2021). Kenya Economic Survey 2019. Nairobi: Government Printer.
25. Kothari, C. R., & Garg, G. (2019). Research Methodology: Methods and Techniques (4th ed.). New Delhi: New Age International Publishers Limited.
26. Kumar, R. (2015). Research Methodology: A Step-By-Step Guide for Beginners (4th ed.). London: Sage publications.
27. Latifi, M. A., Nikou, S., & Bouwman, H. (2021). Business model innovation and firm performance: Exploring causal mechanisms in SMEs. Technovation, 107, 102274. https://www.sciencedirect.com/science/article/pii/S0166497221000559
28. McBurney, D. H. & White, T. L. (2010). Research Methods (8th ed.). Wadsworth: Cengage learning.
29. Mugenda, O. M., & Mugenda, A. G. (2019). Research Methods: Quantitative and Qualitative Approaches (3rd ed.). Nairobi: African Centre for Technology Studies.
30. Muturi, C. M., & Kariuki, P. (2018). Firm level determinants of strategy implementation in the energy sector in Nairobi, Kenya. The Strategic Journal of Business & Change Management, 5(4), 814-832.
31. Oldenburg, B., & Glanz, K. (2008). Diffusion of innovations. Health behaviour and health education: Theory, research, and practice, 4, 313-333.
32. Pati, R. K., Nandakumar, M. K., Ghobadian, A., Ireland, R. D., & O'Regan, N. (2018). Business model design–performance relationship under external and internal contingencies: Evidence from SMEs in an emerging economy. Long Range Planning, 51(5), 750-769.
33. Rogers, E. M. (1995). Diffusion of Innovations (4th ed.). New York: The Free Press.
34. Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). New York: The Free Press.
35. Roscoe, J. T. (1975). Fundamental Research Statistics for the Behavioural Sciences (2nd ed.). New York: Holt, Rinehart and Winston Inc.
36. Saunders, M., Lewis, P., &Thornhill, A. (2019). Research Methods for Business Students (8th ed.). Harlow: Pearson Education Limited.
37. Shahwan, R., & Zaman, T. (2022). Questioning the novelty in a novel business model: how does strategic orientation temper firm performance?. International Journal of Innovation Management, 26(08), 2250067.
38. Shibeika, A. & Harty, C. (2015). Diffusion of digital innovation in construction: a case study of a UK engineering firm. Construction Management and Economics, 33(5/6), 453-466.
39. Spieth, P., & Schneider, S. (2016). Business model innovativeness: designing a formative measure for business model innovation. Journal of business Economics, 86(6), 671-696.
40. Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2-3), 172-194.
41. Teece, D. J. (2014). The foundations of enterprise performance: Dynamic and ordinary capabilities in an (economic) theory of firms. Academy of management perspectives, 28(4), 328-352.
42. Treece, E. W. & Treece, J. W. (1986). Elements of Research (4thed.). St. Louis, Missouri: Mosby Inc.
43. Were, A. (2016). Manufacturing in Kenya: Features, Challenges and Opportunities. Retrieved from: https://set.odi.org/wp-content/uploads/2016/09/Manufacturing-in-Kenya-Anzetse-Were.pdf
44. Xu, X., Yang, C., & Ren, J. (2020). Research on the Relationship between Novelty-Centered Business Model Innovation and Competitive Advantages of Sports Tourism—Based on the Empirical Analysis of Guizhou Province, China. Journal of Service Science and Management, 13(02), 317-329.
45. Zhang, X., Yu, P. & Spil, I. T. A. M. (2015). Using diffusion of innovation theory to understanding the factors impacting patience acceptance and use of consumer e-health innovation: a case study in a primary care clinic. BMC Health Services Research, 15(7), 1-15. Doi:10.1186/s12913-015-0726-2.
46. Zhao, L., Sun, J., Zhang, L., He, P. and Yi, Q. (2021), "Effects of technology lock-in on enterprise innovation performance", European Journal of Innovation Management, Vol. 24 No. 5, pp. 1782-1805
47. Zikmund, W. G., Babin, B. J., Carr, J. C. & Griffin, M. (2013). Business Research Methods (9th ed.). Canada: South-Western Cengage Learning.
Copyright (c) 2024 Michael Mutuku Maundu, Dr. Godfrey K. Makau, Dr. Susan Wekesa
This work is licensed under a Creative Commons Attribution 4.0 International License.
