The Influence of Firm Characteristics on the Relationship Between Operational Innovation and Performance of Manufacturing Firms in Kenya

Abstract

With a marketplace characterized by increased competition globally and constant changes in customer needs and wants, there is a need to adopt operational innovations while complying with the business environment (internal capabilities) and the firm characteristics, influencing factors in the innovation adoption and implementation. For this reason, this study aimed to investigate the influence of firm characteristics on the relationship between operational innovation and the performance of manufacturing firms in Kenya. The positivism approach was used to increase the reliability of investigation findings for generalization. Further, a descriptive research design was adopted, equally to increase the reliability of the survey. Sample of 182 firms with strong affiliations to Kenya Association of Manufacturers (KAM) was used. The firms had 14 subcategories based on the products they manufactured. Statistical Package for the Social Sciences (SPSS) and smart PLS4 were used for data analysis, and regression analysis was used for conclusive results. The findings reveal that firm characteristics have a sizable impact on the association between innovation and firm performance.