External linkages and product innovation in food processing equipment fabricating mses in Nairobi
Abstract
An o
pen innovation model underscores the importance of external sources of innovation ideas to
enterprises. The case is particularly true for Micro
and Small
Enterprises (
MSE
s) facing
financial and technological constr
aints for internal research and development (R&D.
MSE
s
,
therefore
,
largely rely on the environment for innovation knowledge and opportunities. However,
past studies on innovation focus more on the high
-
technology sectors in the developed economies
than
on
the low
-
technology sectors such as equipment fabrication. Further still, past studies
examine both external linkages and product innovation in a rather general than specific manner.
To deepen our conceptual understanding of external search processes, the p
resent study analysed
the effect of
dimensions
of external linkages on type and novelty of product innovation in
MSE
s in
a developing c
ountry context. The study argued
that external partners possess different
innovation knowledge which impact differently o
n aspects of product innovation.
The study surveyed sixty five
MSE
s involved in fabrication of food processing equipment in
Nairobi
. Primary data from MSEs
w
ere
supplemented by secondary data collected from key
informants including officials of Kamukunji
Jua Kali Association, Kenya Industrial Research
Institute (KIRDI), and Kenya Intellectual Property Institute (KIPI) among others. Both
quan
titative and qualitative data were
collected by use of a pre
-
coded structured questionnaire
and interview guides res
pectively. Data from respondents were analysed using Statistical
Package for the Social Sciences (SPSS) while data from key informants were analysed
thematically.
The study found that enterprise
age, product diversification and proprietor’s education l
evel and
relatedness to fabrication work positively affected type of innovation. On the other hand,
proprietor education and relatedness of work experience to fabrication correlated positively to
degree of novelty.
It also
established that MSEs implemented
innovations involving use of
alternative materials
; material saving measures;
producing products
capable of using varied
energy sources; and producing
products capable of multiple functions. These
innovations
were
driven mainly by market and cost consider
ations. The
correlation between extending product
range and type of innovation was both positive and significant while meeting customer
specification and replacing out
-
dated products negativ
ely affected degree of novelty.
The study
also
revealed multiplici
ty of linkages and sources of innovation ideas. The effect of sourcing
ideas from personal contacts on novelty was both negative and significant.
Linking with
competitors and technical consultants significantly correlated with type of innovation. Generally
,
MSEs
tended to
adhere
to and draw deeply from a small number of external links for novel
innovations but used many links to make significant product improvements.
Nature of link with
competitors and R&D organizations significantly correlated with type of
innovation while
nature
of link with customers was significant for novelty.
Generally, a proactive search of ideas had a
positive effect on product innovation.
In particular, a directed search of personal contacts was
significant for type of innovation.
The study concludes that external linkages and product innovation in food processing equipment
fabrication sector are pervasive. However, in spite
of
their realities,
MSE
s largely innovate in an
unsupportive environment. The study recommends that governme
nt (through its agencies) and
other actors
in innovation need to perform
facilitative and intermediary role
s
. Accordingly
policies aimed at enhancing innovativeness in the sector should seek to promote linkages between
the
MSE
s and other actors in the nati
onal system of innovation.
Publisher
University of Nairobi