Rachel W. Waithaka
Jomo Kenyatta University of Agriculture and Technology, P.O. Box 62000-0100 Nairobi, Kenya
Prof Henry M. Bwisa
Full Professor of Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, P.O.
Box 62000-0100 Nairobi ,Kenya
Prof John M .KIHORO
Associate professor of applied statistics, Co-operative University college of Kenya P.O. Box
24814-00502 Karen, Nairobi, Kenya
CITATION: Waithaka W R, Bwisa M H, & Kihoro M J. (July, 2016) Relationshipbetween entrepreneur’s innovatineness and performance of agro-based manufacturing small and medium enterprises in Kiambu county- Kenya: International Journal of Marketing and Entrepreneurship (IJME) 2 (3), 175-187. ISSN 2105 6008.
The study sought to establish the relationship between the entrepreneur’s innovativeness and performance of SMEs in the agro-based manufacturing sector in Kiambu County in Kenya. To achieve the objectives, the study used descriptive survey research design. The target of the study included the 250 registered agro-based manufacturing SMEs in the food subsector in Kiambu County. Stratified random sampling techniques were used to draw a sample size of 69 enterprises. To collect the data a questionnaire with both closed ended and open ended questions were administered. The data collected was analyzed using Statistical Package for Social Science version 21 to generate descriptive statistics including percentages, frequency tables and mean scores. Correlation coefficient was used to determine the magnitude and direction of relationship between innovativeness and the performance of the SMEs. Regression procedure was used to determine the nature of the relationship. The correlation analysis revealed that there is a significant linear relationship between innovativeness and performance of the SMEs. The correlation Coefficient index is 0.833 at P value less than 0.001 (r = 0.833, P < 0.001). The regression model of the study indicated that innovativeness explains 69.4% of the variation in performance of the agro-based SMEs. For one unit increase in innovativeness, performance increases by 1.053 units. Based on the findings of the study, the entrepreneurs should strive to be innovative within their financial ability and in consideration of whether the business environment is hostile or not.
Key words: Innovativeness, Entrepreneur, Small and medium Enterprises, Performance.