Thesis:

Influence of innovation strategy on growth of fast-moving consumer goods manufacturing firms in Nairobi county

Innovation plays a crucial role in the organizational growth of the Fast-Moving Consumer Goods (FMCG) manufacturing sector. This study aimed to investigate the effect of innovation strategy on business performance within this sector, establishing vigorous connections between innovation and growth, aligning with contemporary business insights. The identified innovation strategies included product innovation strategy, market innovation strategy, technological innovation strategy, and process innovation strategy. To enhance the comprehension of the study variables, various theories were employed, this includes: Innovation diffusion theory, resource-based view theory, and open innovation theory. Employing a descriptive research design, this study interprets the innovation strategies embraced by FMCG manufacturing firms in Nairobi County and their subsequent impact on business performance. Data was collected from both primary and secondary sources. The data collection tools used in the study were questionnaires, and document analysis, facilitating a comprehensive analysis of the relationships between innovation strategies and growth outcomes. The target population of the study comprises 204 employees, with a sample size of 182 managers drawn from departments such as Production, Marketing, and Information Technology within 51 FMCG firms. Regression analysis was utilized to v elucidate the relationship between independent and dependent variables. The anticipated findings were expected to shed light on the specific strategies, including product, market, technological, and process innovation, that were more strongly correlated with growth indicators. Data presentation utilizes tables, bar charts, and pie charts, with analysis conducted using SPSS via regression analysis. From the findings of the study, The study examined the effects of innovation strategies on the growth of FMCG, 48.1% of firms introduced new products, showing commitment despite 51.9% facing barriers like resource constraints. Technological innovation revealed a varied adoption landscape, with 23.4% adopting technology extensively, benefiting from increased productivity, while 51.9% lacked training programs, highlighting human capital development challenges. Market innovation showed that 48.7% pursued new market segments, emphasizing strategic market orientation, yet faced mixed impacts on brand visibility and customer engagement. Process innovation indicated an equal split in implementation, with 49.4% of firms seeing benefits in cost reduction and efficiency, though 52.6% faced integration challenges. Overall, the findings underscore the importance of supportive leadership, strategic planning, and resource allocation in leveraging innovation strategies for firm growth.