Influence of Organizational Innovation on the Performance of Coffee Cooperatives in Kenya

Authors

  • Peter Ngibuini Kuguru Open University of Tanzania
  • Prof. Jan-Erik Jaensson Open University of Tanzania
  • Dr. Kinyanjui Nganga Open University of Tanzania

DOI:

https://doi.org/10.47941/jbsm.1066

Keywords:

Organizational Innovation, Performance, Coffee Cooperatives

Abstract

Purpose: The purpose of the study was to assess the influence of organizational innovation on the performance of coffee cooperatives in Kenya.

Methodology: A descriptive research design was applied. The target population of this study was 525 coffee cooperative societies in Kenya registered with the Commissioner for Cooperatives and licensed by AFFA (Coffee Directorate) as at 30th of October 2016. The sample size was 227 respondents. Structured questionnaires were used to collect primary data from the selected respondents.

Findings: The results revealed that organizational innovation and performance are positively and significantly related (β=0.75, p=0.007).

Unique Contributions to Theory, policy and practice: The study recommended firms to adopt new technologies for cultivation of organizational innovations. They need to be proactive in their research and development departments by incorporating technological advancements in order to maximize the potential that is in innovation strategies. Restructuring of the internal organization is necessary given a firm that requires efficiency and effective processes for better performance. The results of this study will contribute new knowledge which will provide the government and other stakeholders with better ways of managing co-operatives and improving their production.

Downloads

Download data is not yet available.

Author Biographies

Peter Ngibuini Kuguru, Open University of Tanzania

PhD Candidate

Prof. Jan-Erik Jaensson, Open University of Tanzania

Associate Professor

Dr. Kinyanjui Nganga, Open University of Tanzania

Lecturer

References

Adom, A.Y., Boateng, L. & Gnankob, R.I., 2021, "˜Corrigedum: Critical analysis of the role of innovative capabilities on firm performance: Evidence from the University of Cape Coast administration in Ghana', Africa's Public Service Delivery and Performance Review 9(1), a580. https://doi.org/10.4102/apsdpr.v9i1.580

AFA, (2017). Coffee Directorate, North Rift Region Annual Reports: Ksi/AR/Vol.1/17. 35-76.

Baka,L. O. (2013). The Challenges Facing Co-operative Societies in Kenya a Case Study: Kenya Planter Co-operative Union (KPCU). Public Policy and Administration Research, 3(11), 32-44. http://www.iiste.org/journals/

Birchall, J. (2004). Cooperatives and the Millennium Development Goals, Competitiveness through People -The Case of Croatia. Zagreb, Geneva: ILO.

Chambo, S. A., Mwangi, M., & Oloo, O. (2008). An Analysis of the Socio-Economic Impact of Co-operatives in Africa and their Institutional Context, Nairobi. International Cooperative Alliance and the Canadian Cooperative Association.

Chareonwongsak, K. (2017). Enhancing board motivation for competitive performance of Thailand's co-operatives. Journal of Co-operative Organization and Management, 5 (2017), 1-13. https://doi.org/10.1016/j.jcom.2017.01.001

Chege, J. (2012). Value addition in Coffee Industry in Kenya: Lessons from Cut Flower Sector Kenya. Institute for public Policy Research and Policy Analysis (KIPRRA), Nairobi: Kenya ICBE-RF Research Report No. 21/12. www.trustafrica.org/icbe

Dadfar, H., Dahlgaard, J. J., Brege, S., and Alamirhoor, A. (2013). Linkage between organizational innovation capability, product platform development and performance: The case of pharmaceutical small and medium enterprises in Iran. Total Quality Management & Business Excellence, 24(7-8), 819-834. https://doi.org/10.1080/14783363.2013.791102

El Gizawi, N. (2014). The dynamic capabilities theory: assessment and evaluation as a contributing theory for supply chain management (Bachelor's thesis, University of Twente). https://purl.utwente.nl/essays/65301

Ellul, A., & Yerramilli, V. (2013). Stronger risk controls, lower risk: Evidence from US bank holding companies. The Journal of Finance, 68(5), 1757-1803. https://doi.org/10.1111/jofi.12057

Food and Agriculture Organization (FAO, 2011). Agricultural Cooperatives are Key to reduce hunger and poverty. Rome, Italy. Accessed December 2016.

Josephine, P. C. (2015). Contributions of Savings and Credit Cooperative Society on Improving Rural Livelihood in Makungu ward Iringa, Tanzania. Proceedings of the Second European Academic Research Conference on Global Business, Economics, Finance and Banking, Zurich-Switzerland, (1-14).

Kenya National Statistics Bureau. (2020). Economic Survey 2020. https://s3-eu-west-1.amazonaws.com/s3.sourceafrica.net/documents/119905/KNBS-Economic-Survey-2020.pdf

Koch, T., & Windsperger, J. (2017). Seeing through the network: Competitive advantage in the digital economy. Journal of Organization Design, 6(1), 1-30. https://doi.org/10.1186/s41469-017-0016-z

Manyara, M. K. (2003). The Development of Co-operative Law and Policy in Kenya, Nairobi.

Mohammed, N., & Lee, W. B. (2014). Role of Cooperatives in Rural Development, The Case of South Nations Nationalities and People Region, Ethiopia; Developing Country Studies, 4 (19), 32-39. https://doi:10.11648/j.sjbm.20150304.12

Onwu, E. G. (2016). The effect of technological innovation capabilities on corporate entrepreneurship and firm performance in the South African media and entertainment industry (Doctoral dissertation).

Pisano, Gary, A Normative Theory of Dynamic Capabilities: Connecting Strategy, Know-How, and Competition (September 29, 2015). Harvard Business School Technology & Operations Mgt. Unit Working Paper No. 16-036, http://dx.doi.org/10.2139/ssrn.2667018

Rahim, F. B. T., &Zainuddin, Y. B. (2019, January). The impact of technological innovation capabilities on competitive advantage and firm performance in the automotive industry in Malaysia. In AIP Conference Proceedings (Vol. 2059, No. 1, p. 020030). AIP Publishing.

Schoemaker, P. J., Heaton, S., &Teece, D. (2018). Innovation, dynamic capabilities, and leadership. California Management Review, 61(1), 15-42.

Shisia, A., Sang, W., Matoke, J., and Omwario, B. N. (2014). Strategic Innovation and Performance of Public Universities in Kenya. European Journal of Business and Management, Vol.6, No.23.

Sualeh, A., & Mekonnen, N. (2013). Evaluation of Coffee Quality of Tigray Regional State, Ethiopia (Case study RayaAzebo District): Prudence Journal of Agricultural Research, 1(2), 3-6.

Teece,D. J., Pisano, G. and Shuen, (2018). Dynamic Capabilities and Strategic Management.

Uphoff, N., & Wijayaratna, C. M. (2000). Demonstrated benefits from social capital: the productivity of farmer organizations in Gal Oya, Sri Lanka. World development, 28(11), 1875-1890. https://doi.org/10.1016/S0305-750X(00)00063-2

Downloads

Published

2022-10-15

How to Cite

Kuguru, P. N. ., Jaensson, J.-E. J., & Nganga, K. N. (2022). Influence of Organizational Innovation on the Performance of Coffee Cooperatives in Kenya. Journal of Business and Strategic Management, 7(3), 101–111. https://doi.org/10.47941/jbsm.1066

Issue

Section

Articles