Product innovation and performance of haco tiger brands East Africa
Understanding the relationship between innovation and performance is relevant for researchers, policy makers and managers. Innovation is widely regarded as one of the most important sources of sustainable competitive advantage in an increasingly changing environment. Innovation has helped companies across the globe to gain and sustain competitive advantage by generating new revenues from innovated products. This study sought to understand the influence of product innovation on the performance of Haco Tiger brands a fast moving consumer goods (FMCG) company in Kenya’s East Africa market. The study used longitudinal research design and looked at the product innovation activities within Haco Tiger brands for the past 5 years, which included a total of 32 products across the five major brand categories. The research used secondary data collection sheet to capture sales revenues for both the company and innovation products for the past 5 years. This also included the list of all the innovated products detailing the launch time and type of innovation. Data collected was analyzed using trend analysis and presented using tables and chats for data interpretation. Findings revealed that product innovation had a positive influence on the performance of Haco Tiger Brands. Through innovation, Haco Tiger Brands had generated new additional revenues and had accelerated organic growth. It is recommended that HTB diversifies its local manufacturing capacity to maximize on its innovation efforts since the locally manufactured products had higher revenue return compared to those of imported as carry in innovation brands. The study also recommends that policies be made in areas of measuring innovation effectiveness within organization other than use of sales revenues. Findings from the study supported the theory upon which this study was based as it brought out the positive relationship between product innovation and organizational performance. Future research is recommended for adoption of other ways of measuring innovation efforts. Qualitative research through interviewing of staff and senior management is also recommended.