Effect of Innovation Strategies on Performance of Tea Firms in Nandi County, Kenya

Abstract

An innovation strategy is a clearly-defined plan of structured steps a person or team must perform to achieve the growth and future sustainability goals of an organization. An explicit innovation strategy helps organizational managers to design a system to match their specific competitive needs. Therefore, without an innovation strategy, different parts of an organization can easily wind up pursuing conflicting priorities even if there's a clear business strategy. The study purpose of this study was to investigate the effect of innovation strategies on the performance of Tea firms in Nandi County, Kenya. Specifically, the study aimed to attained the following specific research objectives; to determine the effect of technological innovation strategies on the performance of tea firms in Nandi County, Kenya; to establish the effect of product innovation strategies on the performance of tea firms in Nandi County, Kenya; to establish the effect of market innovation strategies on the performance of tea firms in Nandi County, Kenya; to determine the effect of process innovation strategies on the performance of tea firms in Nandi County, Kenya. A descriptive research approach was employed in this study. The management staff among the 9 tea firms in Nandi County who total to 87 formed the target population for this study. For the study, the requisite primary data was collected by the use of a questionnaire as its key instrument. SPSS version 25 then aided in analyzing data as it was most apposite and user-friendly for analyzing attitudinal responses that are management related. Descriptive and inferential statistics were the models used in the research to do the data analysis of the data collected and presented through frequency distribution tables and figures. Results were analyzed using descriptive and inferential statistics. The study established that there’re exist a positive, significant link between product innovation strategies and tea firm’s performance in Nandi County, Kenya (r = 0.339; p-value < 0.05), there was a positive, significant link between process innovation strategies and firm performance (r = 0.490, p < 0.05). Further, the results indicate that there is a positive, significant link between market innovation strategies and firm performance (r = 0.224, p < 0.05). And lastly, the results indicate that there is a positive, significant link between technological innovation strategies and Firm Performance (r = 0.430, p < 0.05). The study therefore concluded that innovations strategies for organization performance, customer needs, and technological development and act accordingly to stay at par with rivals. The study therefore recommended that in order to enhance firm performance the management of microfinance ought to focus on the firm activities aligned towards renewing routines, procedures and processes in an innovative manner in a firm. This will positively improve the performance of microfinance.