The Role of innovation in Research and Development (R&D) in the growth and success of Small and Medium-Sized Enterprises (SMEs): a case of Nairobi County

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dc.contributor.authorNdung'u, J. W.
dc.date.accessioned2025-09-08T16:28:11Z
dc.date.available2025-09-08T16:28:11Z
dc.date.issued2025
dc.descriptionFull - text undergraduate research project
dc.description.abstractIn a world where businesses are set amidst dynamic and competitive landscapes, innovation is the cornerstone of organizational survival and growth. It enables firms to refine processes, enhance products, and unlock efficiencies that drive sustainable success. For resource-constrained small and medium enterprises, innovation is not an advantage but a necessity to thrive in today's market. The study investigates innovation strategies that influence the performance of SMEs in Nairobi County, such as product innovation, refinement of processes, strategic marketing, and managerial transformation. Based on the Schumpeterian Theory of Innovation, the Resource-Based View, and the Pecking Order Theory, the work employed a mixed-method approach to show how SMEs leverage innovation to get around their incapacities for growth. A sample of 398 SMEs was obtained using a structured questionnaire, and the data was analyzed using descriptive and inferential statistical methods. Descriptive statistics showed that for 42.6% of the firms, product innovation has a very high influence on performance, while for 52.9%, improved processes were fundamental. Regression analysis confirmed that the significant antecedents of innovation strategies were SME performance; the model R² is 0.775, showing that innovation activities explain 77.5% of the variance in performance. Product innovation, with a β of 0.227 (p < 0.001); process innovation, with a β of 0.235 (p < 0.001); and addressing key challenges, with a β of 0.534 (p < 0.001), further underscores such factors as genuinely transformative. The study concluded that innovation is critical to SME success, providing a competitive advantage in a fast-changing economic environment. It suggested that SMEs must invest in technology, innovate product lines occasionally, and adopt customer-oriented marketing strategies. In addition, the culture of continuous improvement and benchmarking against industry leaders help SMEs emerge as agile, forward-looking players in the marketplace.
dc.identifier.citationNdung’u, J. W. (2025). The Role of innovation in Research and Development (R&D) in the growth and success of Small and Medium-Sized Enterprises (SMEs): A case of Nairobi County [Strathmore University]. http://hdl.handle.net/11071/15794
dc.identifier.urihttp://hdl.handle.net/11071/15794
dc.publisherStrathmore University
dc.titleThe Role of innovation in Research and Development (R&D) in the growth and success of Small and Medium-Sized Enterprises (SMEs): a case of Nairobi County
dc.typeThesis
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