Technological Innovation and Performance of Informal Dairy Enterprises in Kenya: A Product Diversification Perspective

Ann N. Kariuki¹, John M. Kihoro² and Mike A. Iravo³

¹Department of Business Management, Meru University of Science and Technology, P.O Box 972-60200, Meru, Kenya

²Directorate of Computing and e-learning, Cooperative University College of Kenya, P.O. Box 24814-00502, Karen, Kenya

³Department of Entrepreneurship, Technology and Leadership Management, Jomo Kenyatta University of Agriculture and Technology, P.O. Box 62000-00200, Nairobi, Kenya

Cite this paper:
Ann N. Kariuki, John M. Kihoro and Mike A. Iravo. Technological Innovation and Performance of Informal Dairy Enterprises in Kenya: A Product Diversification Perspective. Journal of Business and Management Sciences. 2018; 6(4):163-170. doi: 10.12691/jbms-6-4-4

Abstract

Technological innovation is a key driver of product diversification and change in the dairy industry. However, evidence suggests that in Kenya and Africa at large, small and medium enterprises’ adoption of technology is slow, with most of them operating at low levels of technology and efficiency. The effect of technological change in both the small formal and informal businesses has suggested low performance according to previous studies. This paper presents empirical evidence on the extent to which level of technological innovation in relation to product diversification influences performance of Small Scale Milk Vendors (SSMVs) in Kiambu County, Kenya. The empirical results indicated that level of technological innovation in the form of machinery and equipment was positively associated with performance of informal dairy enterprises. Based on the findings, the paper discusses the strategy, policy as well as the research implications for the informal dairy sector in Kenya.

Keywords:
dairy informal performance product diversification technological innovation

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