Deconstructing innovation in the wood furniture industry in Kenya

Abstract

Innovation is often considered to be a critical component of enterprise competitive advantage. Continuous innovation is necessary to allow firms to better meet consumer needs, stay ahead of the competition, capitalize on strategic market opportunities, and align organizational strengths with market opportunities. In this research, innovation was deconstructed into product, process, and business systems innovations. A model was then developed and used to examine the relationships between innovation constructs and demographic and management attributes of wood furniture firms in Kenya. Results show significant differences in product innovation between micro- and medium-size furniture firms, and between small- and medium-size firms. There were also significant regional differences in all innovation types. Overall, the most significant predictors of innovation were company location and rewards for implementing innovation. Other statistically significant innovation predictors were Internet use and research and development expenditures.