Effect of innovation strategies on the performance of Agritech startups in Nairobi County Kenya

Abstract

The general objective of this study was to analyze how innovation strategies affect performance of the agri-tech startups in Nairobi County, Kenya. Its specific objectives were to: determine effects of disruptive innovation, incremental innovation, and open innovation on performance of agri-tech startups in Nairobi County, Kenya. The resource-based view, and diffusion of innovation theory were used to underpin the study. A positivist research philosophy was followed while descriptive cross-sectional survey design was employed. The unit of analysis was 34 agri-tech startups in Nairobi County from which 189 respondents were selected using a census method. A structured questionnaire was designed using a 5-point Likert scale and was also confirmed to be valid and reliable by a pilot study. The data analysis involved SPSS Version 26, with findings presented using tables and figures. The findings indicated 76.8% change in performance of agri-tech startups was explained by disruptive, incremental and open innovation strategies. The study concluded that innovation strategies are significant predictors of performance. The study recommended that the senior management team working with these agri-tech start-ups should show their commitment towards disruptive innovation through allocation of adequate resources. Managers working with agri-tech start-ups in Nairobi should leverage the incremental strategies that are in place to enhance their performance. Managers working with agri-tech start-ups in Nairobi should also increase partnerships with other industry players to gain meaningful insights on open innovation that could be implemented to enhance their performance. There is need for managers working with agri-tech startups in Kenya to keep innovating in the competitive agri-tech space, collaborate and pursue more R&D for continuous improvement. The findings of this study would help the management team working among agri-tech startups in Kenya to understand the need for supporting innovation activities undertaken during their operations. However, the study was limited by the use of a cross-sectional research design, which did not capture the evolving nature of innovations over time. The study was also restricted to agri-tech startups in Nairobi County, which may affect the generalizability of the findings. Additionally, the use of nonprobability sampling introduces some sampling bias, as only senior management staff were selected, potentially excluding other employees who could provide valuable insights.