MARKETING INNOVATION AND COMPETITIVENESS OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, IN KENYA

Rosaline Wanjiku Chege, Prof. Elegwa Mukulu, Dr. Anaya Senelwa

Abstract


The purpose of this study was to determine the influence of marketing innovation on the competitiveness of Food and Beverage Manufacturing Firms in Nairobi City County in Kenya. The study also sought to explore the moderating effect of firm size on the relationship between marketing innovation and the competitiveness of Food and Beverage Manufacturing Firms in Nairobi City County in Kenya. The study was guided by two theories: Theory of the Innovative Firm and Knowledge Based Theory of the Firm The study employed a mixed method research design utilizing Likert scale questionnaires as the primary data collection method, emphasizing a positivism philosophy grounded in quantifiable observations and statistical analysis. The target population encompassed various roles within licensed food and beverage manufacturing firms, totaling 403 individuals, with a sample size of 201 determined through simple random sampling. Reliability was assessed through a pilot test, utilizing a Cronbach’s coefficient alpha based on internal consistency was calculated using SPSS version 24 in order to establish the reliability of the survey instrument. Cronbach’s alpha value of 0.70 was obtained and thus research instrument was reliable. Statistical techniques were employed for data analysis, including descriptive statistics, multiple regression analysis, and statistical tests such as ANOVA. The study identified a substantial positive influence of marketing innovation on the competitiveness of Food and Beverage Manufacturing Firms in Nairobi City County in Kenya as marketing innovation explained an impressive 53.3% of the variability in competitiveness (R² = 0.533, F (1, 190) = 218.991, p < 0.000). Marketing innovations (Beta = 0.732, p < 0.001) also showed strong positive correlations with competitiveness. The interaction between marketing innovations and firm size was statistically significant (p < 0.001), highlighting that firm size moderates the effect of innovation on competitiveness. In conclusion, the study emphasizes the crucial role of marketing innovation on the competitiveness of Food and Beverage Manufacturing Firms in Nairobi City County in Kenya. The findings reveal a substantial positive correlation, indicating that marketing innovation significantly contributes to competitiveness. Based on the study findings, Firms should prioritize innovation in marketing to enhance competitiveness. Additionally, companies should leverage their size to better integrate and scale innovations, fostering a culture of continuous improvement for long-term success.

Key Words: Marketing Innovation, Competitiveness, Firm Size, Food and Beverage Manufacturing Firms


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