Corporate Entrepreneurship, Innovation and Performance of Research Institutes in Kenya

Abstract

Over the years, research institutes in Kenya have been getting funding from international organizations and donors to finance their research work. However, as a result of alleged misuse of funds, the government of Kenya as well as donors has reduced their financial support to these institutions. To ensure sustainability and survival in today’s world characterized by rapid technological changes, increasing public demand and increasing human resource demands, research institutes in Kenya need to adopt corporate entrepreneurship so as to start generating considerable revenue to finance their programs. This study therefore examines the relationship between innovation, corporate entrepreneurship and performance of Kenya Research Institutes. The study also seeks to determine the relationship between corporate entrepreneurship, innovation and performance of Kenya Research Institutes. This study used an explanatory research design. The target population of this study was 32 Research institutes in Kenya. Since the population is not too large, this was a census study. The semi structured questionnaires were used to collect data from heads of enterprise departments/general managers in the 32 Research institutes in Kenya. The research instrument (questionnaire) provides both quantitative and qualitative data. Qualitative data obtained from open ended questions were analysed by use of thematic content analysis. Quantitative data obtained from closed ended questions was analysed by use of inferential and descriptive statistics with assistance of SPSS version 22. Correlation analysis was employed to examine existence of the relationship while the regression analysis was used to examine the weight of the relationship between in the independent variables and the dependent variable. The study found that research institutes in Kenya had adopted innovation as a strategy to ensure sustainability. The number of products or services and number of patented products in research institutes in Kenya has been increasing for the last five years. The study established that research institutes in Kenya were using corporate entrepreneurship to ensure their sustainability. The study found that research institutes had invested in some high risk projects. In addition, some research institutes had invested in opportunities unrelated to their organization’s vision and mission. The study revealed that the number of untested technologies, new technologies, new business processes, features added in products and services as well as the amount of money invested in research and development by research institutes in Kenya has been increasing for the last five years. The study found that innovation as well as corporate entrepreneurship has a positive and significant effect on the performance of research institutes in Kenya. The study recommends that the government of Kenya through policymakers should develop policies to necessitate the use of innovations to improve performance. In addition, more policies should be developed to enhance the adoption and utilization of corporate entrepreneurship in research institutes. In addition, research institutes in Kenya should seek to increase their number or products of services as well as develop and adopt new technologies. Further, research institutions in Kenya should adopt a risk taking characteristics of corporate entrepreneurship as a way of improving performance. In addition, the research institutes should also invest in new technologies and other opportunities even if they unrelated to an organizations mission and vision.