Innovations enhance long and short-term decisions making towards remaining competitive in the business environment. MFIs in Kenya and more so in Narok Town are no exception. The study sought to assess the effect of product innovation strategies on the growth of microfinance institutions in Kenya, Narok Town. The research adopted cross-sectional design and a census was applied of 180 respondents employed in 11 registered MFIs. Primary and Secondary data was collected and correlation and linear regression analyses were applied. The results showed that product innovation had a significant positive association to growth of MFIs in Narok Town (r= 0.190, p=0.019), and product innovation had a positive Statistical effect on growth of MFIs in Narok Town (?=0.169, t (149) = 2.35,p=0.02<0.05). In conclusion, it is evident that the more MFIs invest in innovative products the better their growth. The study therefore, recommends that the MFIs in Narok town need to invest more in product innovation as a mean to sustain their growth and remain afloat in the completive market.
Abate, J. A., Grant, J. L., & Stewart, G. B. (2014). The EVA style of investing. The Journal of Portfolio Management, 30(4), 61-72.
Alegre, J., Lapiedra, R., & Chiva, R. (2006). A measurement scale for product innovation performance. European Journal of Innovation Management.
Atieno, R. (2014). Linkages, Access to Finance and the Performance of Small Scale Enterprises in Kenya”.
Bayus, B. L., Erickson, G., & Jacobson, R. (2010). The financial rewards of new product introductions in the personal computer industry. Management Science, 49(2), 197-210.
Chen, S., & Dodd, J. L. (2002). Market efficiency, CAPM, and value-relevance of earnings and EVA: A reply to the comment by professor Paulo. Journal of managerial issues, 507- 512.
Chowdhury, A. (2011). How effective is microfinance as a poverty reduction tool? Poor poverty: The impoverishment of analysis, measurement and policies, 165.
Cooper, R. G. (2013) Where are all the breakthrough new products? Using portfolio management to boost innovation. Research-Technology Management, 56(5), 25-33.
Echchab & Hassanuddeen, 2013). Shofawati, A. (2019). The Role of Digital Finance to Strengthen Financial Inclusion and the Growth of SME in Indonesia. KnE Social Sciences, 389-407.
Gudda, P. (2017). “Clustering and Product Innovativeness: A Literature Review of Small and Medium-Sized Enterprises (SMEs) in Kenya”: International Journal of Academic Research in Economics and Management Sciences (Online), Vol. 6, No. 4 ISSN: 2226-3624 .pp. 115-145.
Gudda, P., Bwisa, H., & Kihoro, J (2013). “Effect of Clustering and Collaboration on Product Innovativeness: The Case of Manufacturing SMEs in Kenya”: International Journal of Academic Research in Business and Social Sciences (IJARBSS).ISBN 2222-6990. (July). Vol 3, No.7 pp. 42-55.
Hajar, I. (2015). The effect of business strategy on innovation and firm performance in small industrial sector. The International Journal of Engineering and Science (IJES), 4(2), 1-9.
Kariuki, F. (2015). The effect of electronic banking on growth of customer deposits of Microfinance Banks in Kenya (Doctoral dissertation, University of Nairobi).
Karabulut, A. T. (2015). Efffect of innovation strategy on firm performance: a study conducted on manufacturing firms in Turkey. Procedia-Social and Behavioral Sciences, 195, 1338-1347.
Karendi, N. G. (2015). Strategic management practices and performance of small and medium sized enterprises in Kenya (Doctoral dissertation).
Kibugo, M. K. (2016). Effect of Financial Innovations on Performance of Microfinance Institutions in Nakuru Town.
Kimberlin, C. L., & Winterstein, A. G. (2008). Validity and reliability of measurement instruments used in research. American journal of health-system pharmacy, 65(23), 2276-2284.
Kojo, S. (2013). Exploring Innovations in Microfinance Institutions in Northern Ghana. Business and Economic Research, 3(1), 442-456.
Kothari, C. (2014). Research Methodology. Method and Techniques, 2nd ED, WishwaPrakashan: New Delhi. - (2008). Research methodology, methods and techniques (pp. 109-110). New Delhi: New Age Inter-national (P) Limited.
Monyoncho, L. N. A. (2015). Relationship between banking technologies and financial performance of commercial banks in Kenya. International Journal of Economics, Commerce and Management, 3(11), 784-815.
Mugenda, A. G., & Mugenda, A. G. (2012). Research methods dictionary. Nairobi, Kenya: Applied Research & Training Services.
Nyamura and Tirimba (2018) Factors on the Financial Performance of Deposit Taking Saccos in Nairobi City County,Kenya. International Journal of Scientific and Research Publications (IJSRP) 8(11) DOI:10.29322/IJSRP.8.11.2018.p8348
Omwanza, C. O., & Jagongo, A. (2019).in their study on financial innovations and financial performance of microfinance institutions in Kenya: A theoretical review. International Academic Journal of Economics and Finance, 3(4), 32-46
Otieno, W. O. (2013). Outsourcing as a strategy for competitive advantage by Barclays bank of Kenya (Doctoral dissertation, University of Nairobi).
Orodho, J. A. (2005). Elements of Education and social science research methods. Kanezja publishers.
Osuga, P. O. (2016). The efffect of strategic innovation on the performance of SMES in Nairobi Musyoka, W. M., & Moso, J. C. (2013). Quality of Experience (QoE) Measurement and its Challenges in Mobile Networks for Multimedia. Comput. Inf. Technol, 7(01), 39-44.
County (Doctoral dissertation, United States International University-Africa).
Ringera, M., & Muturi, W. (2019) Effect of Investment Decisions on Financial Performance of Microfinance Firms in Kenya. Journal of Social Sciences and Information Technology, 5(3).
Sarker, S., & Sahay, S. (2004). Implications of space and time for distributed work: an interpretive study of US–Norwegian systems development teams. European Journal of Information Systems, 13(1), 3-20.
Shurie, M. B., & Olando, C. O. (2020). Assessing Effect of Business Innovations on Financial Performance of Small and Medium-sized Enterprises in Kenya: A Case of SMEs in Garissa County. Asian Journal of Economics, Business and Accounting, 19(3), 47-59
Stewart, H. B. (1982). Technology innovation and business growth. Nutveco, San Diego.
Walker, R. M. (2014). Internal and external antecedents of process innovation: A review and extension. Public Management Review, 16(1), 21-44.
In-Text Citation: (Nadupoi et al., 2022)
To Cite this Article: Nadupoi, K. V., Patrick, G., & Diana, A. (2022). Effect of Product Innovations on Growth of Microfinance Institutions in Narok Town. International Journal of Academic Research in Business and Social Sciences, 12(8), 1844– 1859.
Copyright: © 2022 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
