An Evaluation of determinants of innovation adoption by analytical laboratories in Kenya

Date
2024
Authors
Okwaro, D. R.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Innovation plays a key role in improving the performance of firms. However, innovation adoption in Kenya is generally low in most sectors, including the analytical laboratories sector where most testing is still performed using old methods and technologies. Therefore, the aim of this research was to examine the determinants of innovation adoption by analytical laboratories in Kenya. The specific objectives of this study were to examine the effect of firm level, industry-level, and macro-environment determinants of innovation in analytical laboratories in Kenya. The theories that guided this research were Technology Acceptance Model and the Open versus Closed Innovation model. The positivism philosophy was adopted for this research. The methodological approach research entailed the use of the descriptive cross-sectional research design to investigate the associations between the dependent and independent variables. The target sample size for this research was 100 respondents. Data was collected using questionnaires that were administered to 88 respondents comprising of general managers, senior analysts, analysts, business development and marketing managers, quality managers/officers, finance managers, head of research and development (R&D) and human resource managers. The findings of this study showed that firm level, industry level and macroenvironment determinants had a significant positive influence on innovation adoption in analytical laboratories in Kenya. First, the findings suggested that firm level determinants have a significant positive influence on innovation adoption in analytical laboratories in Kenya. These findings imply that innovation adoption was higher in large firms, those with high product diversification, those that focus on continually developing new products/services rather than improving existing ones, older firms, those with high financial and human capabilities, and those pursuing open and closed innovation strategies. This finding suggests that enhancing firm-level determinants can improve the adoption of innovation in analytical laboratories. Secondly, the results showed that industry level determinants have a positive influence on innovation adoption in analytical laboratories in Kenya. The findings suggested that high innovation adoption was associated with high intensity of competition, high buyer power, high supplier power, high threat of substitutes and low entry barriers. This finding suggests that enhancing industry level determinants can improve the adoption of innovation in analytical laboratories. Lastly, the results showed that macro-environment determinants have a positive influence on innovation adoption in analytical laboratories in Kenya. Economic growth, regulatory environment and sustainability standards were found to have a positive influence on innovation adoption in analytical laboratories. This finding suggests that enhancing macroenvironment determinants can enhance the adoption of innovation in analytical laboratories. From the study, it is recommended that policy makers need to strengthen the regulatory environment, develop industry standards and foster compliance in order to encourage innovation in analytical laboratories. Additionally, managers of analytical laboratories should consider strengthening their firm level determinants through increasing their human and financial capacity for innovation. Managers of these firms also need to monitor industry-level determinants as well as changes in the regulatory and economic environment and respond appropriately using innovation. Keywords: Analytical laboratories, firm-level determinants, industry-level determinants, innovation adoption, macro-environment determinants,
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Full - text thesis
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Citation
Okwaro, D. R. (2024). An Evaluation of determinants of innovation adoption by analytical laboratories in Kenya [Strathmore University]. http://hdl.handle.net/11071/15597