Influence of Innovativeness On the Performance Of Food and Beverage Manufacturing Enterprises In Nairobi City County

Abstract

Increase in global competition, ever-changing technologies and unstable business environment as a result of globalization, market liberalization and Covid 19 impact on businesses, have made firms search for other means of survival and growth. Food and beverage manufacturing enterprises are also experiencing these challenges. This is demonstrated by the decrease in contribution to GDP, ranging from 13.6% in the early 1990s to 7.6% in 2020, thereby raising doubt on whether the sector is capable to meet the goals of Vision 2030. Different studies around the world have suggested the adoption of entrepreneurial practices as part of the solution. However, the findings of these studies have been inconclusive. The objective of this study was to establish the influence of Innovativeness on performance of food and beverage manufacturing enterprises in Nairobi City County. Descriptive survey research design was adopted. The target population was one hundred and thirty-eight food and beverage manufacturing firms registered under KAM by 2020. A census was conducted and data was obtained using a questionnaire. Data was analyzed using simple and multiple regression analysis with the help of SPSS version 25.0. Hypothesis was tested using t-statistic at 5% significance level. The study found that innovativeness had a positive influence on performance (regression coefficient 0.446, p-value of 0.000). The study recommends that firms should assess their ability to embrace new ideas and processes that will lead to development of new products, services, markets or technologies. Innovativeness plays an essential role in doing away with challenges associated with businesses.