Effect of Technology Innovation on Access to Markets by Small Medium Enterprises in Nairobi County

Abstract

Innovation has become one of the major contributors to the survival of any business. This means that businesses should constantly develop and improve their products and services as well as all the processes that are involved from the production stage to the consumption stage. This study was aimed at determining the effect of technology innovation on access to markets by SMEs in Nairobi County. The objective of the study was to investigate the effect of technology innovation in entry to markets by SMEs in Nairobi County, Kenya. Descriptive research design was used for this study. Inferential statistics, measures of central tendencies and distribution were applied. The target population for the study was 1050 SMEs, registered in Nairobi County. Stratified random sampling was employed, with a target of 210 registered SMEs within Nairobi County. The number represented 20% of the total number of registered SMEs within Nairobi County which is 1050. Primary data was collected by use of self-administered questionnaires was from the SMEs owners in Nairobi County. Data analysis was done using SPSS and findings presented using percentages, tables and charts. The researcher, in this study, aimed at establishing the effects of technological innovations on the on access to markets by SMEs in Nairobi County, Kenya. The study established that on the extent of SME innovation there is continuous improvement in processes to create value to the customer. The study further established that size of the firm was the factor that mostly influenced diffusion of innovation. The study also established that value of product innovation contributes the most to the access to markets by small medium enterprises, followed by value of service innovations. The value of product innovation, value of service innovations, and value of new production processes were all significant at a five per cent level of significance and a 95% level of confidence of on access to markets by SMEs. The study concluded that enhanced and innovative customer relations have increased understanding on markets among SMEs. The study further concluded that value of product innovation contributes the most to the access to markets by small medium enterprises, followed by value of service innovations. This study recommends that small and medium enterprises should develop effective innovation policies on marketing since marketing is one of the major determinants of SMEs performance.