Thesis:

Influence of innovation strategies on performance of small and medium sized manufacturing business in Nairobi Kenya

Small and Medium-sized Enterprises (SMEs) play a vital role in the economy of Nairobi and Kenya as a whole. They contribute significantly to employment creation and help in poverty alleviation. Additionally, SMEs drive economic development by supplying essential goods and services, fostering entrepreneurship, and promoting innovation. This research examines the connection between innovation strategies and business performance, emphasizing how SMEs in the manufacturing sector can use innovation to gain a sustainable competitive edge. The main objective of this study is to assess the impact of innovation strategies on the performance of manufacturing SMEs in Nairobi. Specifically, the study aims to evaluate how product innovation, process innovation, technological innovation, and market innovation strategies affect business performancewithin this sector. A quantitative research design will be adopted to collect numerical data related to innovation strategies and key performance measures. The target population for this research consists of 68 SME manufacturing firms within Nairobi County. A census approach will be applied, ensuring that all identified firms are included in the study. Data will be gathered through structured questionnaires administered to managers of the selected SMEs. Prior to the actual data collection, the questionnaire will undergo pre-testing and refinement to enhance its clarity and validity.Descriptive statistics will be employed to summarize the collected data, while inferential statistics will be utilized to assess the relationship between innovation strategies and business performance. Data analysis will be conducted using Statistical Package for the Social Sciences (SPSS) to generate insights and meaningful interpretations. Ethical considerations will be strictly followed throughout the study. The confidentiality and anonymity of participating SMEs will be safeguarded, and respondents will have the freedom to withdraw from the research at any stage without facing any adverse consequences. The study may face limitations such as potential response bias, limited generalizability due to the specific context of Nairobi and reliance on self reported data. Steps will be taken to mitigate these limitations through rigorous data collection and analysis procedure. The findings reveal that technological innovation strategies significantly enhance performance metrics, such as operational efficiency and financial outcomes. Additionally, product innovation, process improvement, and knowledge management strategies are shown to positively influence performance measurement. Statistical analyses, including regression and correlation, reveal the interconnected nature of various innovation strategies and their combined impact on organizational performance. The findings emphasize the importance of a comprehensive approach to innovation for manufacturing SMEs, highlighting its role as a key factor in enhancing competitiveness and driving growth in a rapidly evolving market. To strengthen their market position, SMEs are encouraged to invest in advanced technologies, cultivate an innovative organizational culture, and improve knowledge management practices. This research contributes to the understanding of how strategic innovation can drive better performance in the manufacturing sector. It underscores the necessity for continuous investment in innovation and a sustained focus on adaptive strategies to ensure long-term growth and resilience.