Innovation Strategies and Performance of Beer Firms in Kenya

Abstract

Due to the dynamism and the sophistication of competitors, business organizations are forced to pursue innovative strategies. This is particularly true for beer firms in Kenya which face competition from other beer firms and other beverages such as tea, soda, wine, and water. The intention of this study was to ascertain the impact of innovations on the performance of beer firms in Kenya. In the research study innovation was indicated by product, technological, marketing, and process innovations. Firm performance was indicated by growth in market share, increase in profitability, and increase in output. The study was anchored on the resource-based theory and diffusion of innovation theory. The study used descriptive research design. The target population of the study were the thirteen beer firms listed as beer manufacturers by the Kenya Revenue Authority. The study sampled all the brand managers of the beer firms. The analysis of data was done using descriptive and inferential statistics. The study established that innovations had a positive and statistically effect on the performance of the firms. The study found that technological innovations had a positive and moderate effect on the performance of the beer firms. Marketing and process innovations were also discovered to have positive and statistically significant effects on performance. The study recommended that the beer firms should enhance the use of product, process and marketing innovations. Further, the study recommends that the beer firms should enhance the use of technological innovations which support the operations of the firms and thus impact performance indirectly.