• English
    • français
  • English 
    • English
    • français
  • Login
View Item 
  •   Repository Home
  • Research Papers (RP)
  • RP-School of Economics
  • RP-Department of Applied Economics
  • View Item
  •   Repository Home
  • Research Papers (RP)
  • RP-School of Economics
  • RP-Department of Applied Economics
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Factors influencing micro and small enterprise’s decision to innovate in Kenya

Thumbnail
View/Open
Full Text Article (526.4Kb)
Date
2018-12-08
Author
Njiraini, Peter
Gachanja, Paul
Omolo, Jacob
Metadata
Show full item record
Abstract
An enterprise’s propensity to innovate has been recognised to have an important bearing on its performance. In Kenya empirical work on micro and small enterprises (MSEs) propensity to innovate is still nascent in spite of the pivotal role played by these enterprises in the economy. The current paper used a Probit econometric model to analyse factors that influence MSE’s decision to innovate or not. Results from the analysis show that the average number of years of education for a production worker, physical capital intensity, age of an MSE, access to finance and size of an MSE are important factors influencing MSEs innovation decisions. Higher foreign ownership and manager’s experience were found to act as hindrances towards MSEs’ decision to innovate. Based on the study findings it is clear that human capital skills and an MSE’s resource endowment positively influences MSEs innovativeness. From a theoretical perspective, there is need for skills segmentation to isolate human capital skills that are most relevant for stimulating MSEs innovative activities. Firm level and policy level strategies are also needed to improve the technical skills of the average MSEs’ production workers across the country. Subsidisation of physical capital and financial services for MSEs should also be used to promote these enterprises innovativeness.
URI
http://ir-library.ku.ac.ke/handle/123456789/19466
Collections
  • RP-Department of Applied Economics [102]

Designed by Library ICT Team copyright © 2017 
Contact Us | Send Feedback

 

 

Browse

All of RepositoryCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

My Account

LoginRegister

Designed by Library ICT Team copyright © 2017 
Contact Us | Send Feedback