Nurturing Creativity and Innovation in African Enterprises: A Case Study on Kenya

Innovation and creativity are the backbone of entrepreneurship. Domestic and international competition, changing government regulations and rapidly shifting market conditions demand constant creative innovation for corporations to survive. Despite an increase in the number of innovations from African enterprises and research institutions in the current digital age, there is a lack of investment in innovation and creativity to ensure the sustainability of the continent\u27s enterprises. This chapter seeks to address the problem of how to support innovation and creativity in African enterprises by combining two theories of diffusion of innovation and product life cycle through examples from Kenya. Existing research on innovation and creativity tends to focus on the diffusion of technologies on the continent but fails to question the role of the mindset of entrepreneurs, the role of the individual, and the current trajectory of innovation in Africa as it pertains to the industrial revolutions elsewhere in the world. This chapter focuses on local expressions of innovation or the relationships that exist between their different components. Consequently, it aims to provide an overview of how innovation and creativity can be locally supported as a strategy for building durable and profitable enterprises in Africa

GLOBALIZATION: DO AFRICAN WOMEN ENTREPRENEURS MATTER?

Even with the increased number of women enterprises and efforts to help women entrepreneurs in Africa exploit the potential benefits globalization, gender inequalities (perception and treatment of women in Africa) still stand in their way.   This paper seeks to address three questions:  First, what the literature suggests with respect to re-thinking alternative analytical approaches to a new understanding of globalization, entrepreneurship and gender equality in global commerce.  This will be followed by the question on how Africa conceptualizes women entrepreneurship and lastly, if the current African conceptualization of women entrepreneurs could precipitate exploitation of opportunities that the emerging global order presents.  The literature suggests that women still have a long way to go in changing environmental forces and perceptions to fully exploit their potential in the global stage.  A new theoretical way of analyzing their progress is imperative

Orchestrating Smart Cities, New Disruptive Business Models and Informal Enterprises

As the fourth industrial revolutions technologies intensify, cities are becoming smarter, new business models are emerging and informal enterprises are formalizing by default. Research demonstrates that the future of our world is decided by the quality of its future cities. As cities invest in information and communication technologies (ICTs) and embrace the Fourth Industrial Revolution (4IR) technologies to make life easier and solve many of the problems we face today, employment opportunities expand and citizens enjoy better lifestyle. This chapter will examine how the concept of smart cities is disrupting existing business models and creating new ones that have positively impacting Africa’s informal enterprise sector. The chapter leverages abundance theory to explain the emerging phenomenon in the nexus between smart cities, new business models and informal enterprises in Sub-Saharan Africa. The study finds that indeed the concept of smart cities is indeed facilitating new business models that are formalizing the informal sector

Linkage Dynamics between Small and Large firms in Kenya

This paper is concerned with small enterprise development in developing countries, focusing on the question of the potential for using linkages with large enterprises as part of a strategy for the development of the small business sector. The paper will review existing literature and policy experience on this topic, whilst also reporting some results from a longitudinal pilot investigation, undertaken in Kenya in 2005 and in 2014. The paper will draw on empirical evidence from a longitudinal pilot investigation in Kenya. At least five large firms from different industries were purposively selected and a series of qualitative interviews conducted in 2005 and in 2014 to determine: 1) their experiences in collaborating with micro and small enterprises (MSEs) and their assessment ofthe potential for doing so in the future; (2) groups of MSEs that they work with; 3) how they built the relationships and (4) whether or not the relationship has worked and the factors influencing this, fromtheir perspective. The potential benefits of Foreign Direct Investment (FDI) to host economies is summarised here and five main types of linkage and spillover effects, by which MNCs can affect the development of businesses in the host economy are identified: Backward linkages with suppliers, which can range from arms length market transactions to deep, long-term inter-firm relationships; Forward linkages with customers, such as marketing outlets, which may be outsourced, such as petrol stations and restaurant chains; Linkages with competitors, since foreign investors may set new standards, which local firms may seek to compete with; Linkages with technology partners, since some MNCs may initiate common projects with indigenous SME partners, which are an important potential source of technology and know-how for local firms; Other spillover effects, including demonstration effects, as inward investors demonstrate new and better ways of doing things to local firms and human capital spillovers,when, for example, trained personnel leave the inward investor to work for a local enterprise and/or set up their own business. The evidence of positive spillovers, where it exists, is strongest in the case of backward linkages, with local suppliers in developing countries. Positive benefits stem from the information, technical assistance and training provided by MNCs to help raise the quality of supplier's products and services. More generally, empirical evidence suggests that the positive spillover effectsfrom FDI do not necessarily occur in practice, influenced by the specific conditions pertaining in the host country as well as the rationale for the foreign company making the investment. The implications for policy will be considered, paying attention to the potential role of national governments, in both developing and developed countries, as well as international development agencies.Whilst this is not a new topic, a number of recent trends suggest there may be greater scope for developing such linkages inthe future than in the past. These include the emergence of new sources of FDI in developing and emerging economies themselves, increasing signs of SMEs internationalising their operations rather than simply exporting from their domestic base, as well as a continued increase in outsourcing byMNCs.Key Words: FDI; SME; Developing Economies, Impact of MNCs on SMEs, SME Linkages

What drives women out of Entrepreneurship? The joint role of culture and access to finance

This paper seeks to explore the barriers women entrepreneurs encounter in developing countries. Extending beyond qualitative assessment, the paper explores the magnitude of cultural practices and other factor that impact on the development of female entrepreneurship. The paper reviews existing literature on women entrepreneurship, focusing on the major impediments that curtail women entrepreneurship in developingcountries. The paper reports on empirical evidence drawn from the review of literature on women entrepreneurship. A total of 13 published articles were reviewed forming the basis of the paper. Evidence from the reviewed articles reveal that cultural practices in developing countries play a major role in driving women out of entrepreneurship and by extension curtailing on their development. Women in developing countries are disadvantaged by their lower levels of financial literacy and awareness. Access barriersto financial resources are significant. Women entrepreneurs are still to overcome key challenges like access to training in trade issues, operations management and marketing, as well as access to good mentors and mentorship programs. Based on the reviewed literature, practical implication for policy makers include; the pressing need to develop a legal framework to protect female entrepreneurship, capacity buildingprograms for potential entrepreneurs, holistic training for potential womenentrepreneurs and most importantly, a creation and provision of credit facility dedicated to women entrepreneurs.Key words: Women, Drives, Entrepreneurship, Culture and Financ

THE MODERATING INFLUENCE OF REGIONAL INTEGRATION ON STRATEGIC ALLIANCES AND PERFORMANCE OF KENYAN MANUFACTURING FIRMS IN THE EAST AFRICAN COMMUNITY MARKET

The specific objective of this study was to determine the influence of regionalintegration on the relationship between strategic alliances and performance ofKenyan manufacturing firms in the East African Community market. The studywas anchored on Resource dependency theory, theory of integration and the Opensystem theory. The positivism philosophical paradigm and a cross sectionaldescriptive survey design guided the study. The population of the study was 160Kenyan manufacturing firms in the EAC market. Primary data was collectedusing a semi-structured questionnaire. A response rate of 81.88% was realized.Secondary data was collected from financial statements of the respective firms.Data was analysed using descriptive and inferential statistics. Hypotheses wastested using Baron and Kenny model of stepwise regression analysis to test formoderating effects. From the research findings, regional integration was found tohave a statistically significant moderating influence on the relationship betweenstrategic alliance and firm performance. These results are consistent withpropositions in the resource dependence and open system theories. In a regionalintegration framework, firms depend on each other through strategic alliances togain competitive advantages as envisaged in resource dependency theory. Thestudy recommends that policy makers in EAC partner states should encouragecomplementarity and competitive advantage approaches while promoting skillstransfer and information sharing amongst the firms

THE JOINT EFFECT OF STRATEGIC ALLIANCE, REGIONAL INTEGRATION AND MACRO ENVIRONMENT ON THE PERFORMANCE OF KENYAN MANUFACTURING FIRMS IN THE EAST AFRICAN COMMUNITY MARKET

The study sought to establish the joint effect of strategic alliance, regional integration and macro environment on the performance of Kenyan manufacturing firms in the East African Community market. The study was anchored on resource dependency theory, Resource Based Theory, theory of integration and the Open system theory. The positivism philosophical paradigm and a cross sectional descriptive survey design adopted guided the study. The population of the study was 160 Kenyan manufacturing firms in the EAC market. Primary data was collected using a semi-structured questionnaire. A response rate of 81% was realized. Secondary data was collected from financial statements of the respective firms. Data was analysed using descriptive and inferential statistics. Hypotheses were tested using both simple and multivariate regression analysis while Baron and Kenny (1986) model of stepwise regression analysis were used to test for moderating effects. The findings indicated that there is a statistically significant positive joint influence of strategic alliance, regional integration and macro environment on the performance of Kenyan manufacturing firms in the East African Community market and the joint effect was greater than the influence of each variable individually. Future research directions include a replication of study in a longitudinal approach while using path analysis or structural equation models and consideration of other sectors, firm characteristics and resource constraints. The results of this study will serve as guide to document that the level and type of alliances used in the Kenyan manufacturing firms in the EAC market will determine their performance

The Significance of Faith Based Enterprises in the Dual Roles of Social Good and Economic Development in Kenya

This paper seeks to investigate the impact of Faith based enterprises in their dual role of building social good and economic development in Kenya. A review of the literature reveals the absence of a coherent conceptual framework onthe success or failure of these enterprises. From the twenty-four published articles reviewed, forming the basis of the paper, it was evident that the impact of faith based enterprises extends beyond what is conceptualized as social enterprise across different faiths. Empirical studies identify application of entrepreneurial factors of innovativeness, proactiveness and risk taking as central to the performance and sustainability of social enterprises, thus spurring the growth of social entrepreneurship. The crucial dilemma to social entrepreneurship remains how to measure its performance due to the non-quantifiabilityof some of its social value deliverables. The paper concludes by suggesting various variables namely: entrepreneurial orientation factors, environment (internal and external) factors and their relationships from the literature as a source for further research. This would enrich the understanding of social entrepreneurship and its anecdotes of the performance of Faith based organizations for social value deliveries, and economic development of communities. Some of the practical policy implications include: development of a public private partnership to solve some of cross cutting social problems through enterprises;and building of linkages with innovation centers to enhance social enterprise activities. Implications for Faith based entrepreneurship theory and management practice are discussed.Key Words: Faith based enterprises, Social Entrepreneurship, Social good, Innovation,Faith, Proactiveness, and Economic Developmen

Interventions, Entrepreneurial Orientation and Macro Environment: Effect on Beneficiary Poverty Reduction by Faith Based Enterprises

This study focuses on joint effect of interventions, entrepreneurial orientation and macro environment on beneficiary poverty reduction (BPR) by Faith based enterprises (FBEs) within the slums of Nairobi, Kenya. In Nairobi, about 60-70% of the people live in slums and conditions are deplorable. Hence, FBEs assist meet the social welfare voids like shelter, water, health services, education and employment. However, there is distorted and incomplete information with divergent views to explain success or failure of joint effects in BPR. Hinged on these gaps, the study objective of joint effect of the variables on BPR is assessed and its hypothesis is tested. The study uses a census approach and data was collected from 72 FBEs using a structured questionnaire. The study uses the descriptive cross-sectional research design and data is analysed using descriptive statistics and hierarchical multiple regression analysis. Study found that joint effect of the variables has a greater effect on BPR than the singular effect of each variable; most people in Nairobi slums live below World Bank poverty threshold of $1.90 per day and FBEs bring disruptions that create wealth enabling people take charge of their own destinies as they escape from poverty. Key hindrances to BPR in the slums of Nairobi include lack of markets, reduced donor funding, basic needs such as food, water, shelter, health services, public schools, latrines for safe hygiene and unemployment. Study adds value to theory as findings show net works trigger the mobilization of resources which explains robust joint effects in BPR. Adds value to human capital theory as findings reveal enterprises can deliver in social value based on relationships and doing things differently by those involved despite their illiteracy and inexperience. The paper concludes findings inform new thinking that authorities and development partners may emulate in building new funding outfits for poverty reduction such as collaborations to mobilize resources, enterprise culture for business approaches, technology for markets, quality products, politics for laws and support. Pentecostalism and Catholicism are the most prevalent in BPR within slums of Nairobi. Future research could use grounded theory approach for more in-depth investigation

Entrepreneurial Orientation as Antecedent of Business Model Innovation in Medium Enterprises in Kenya

This study investigated the influence of entrepreneurial orientation on business model innovation in medium enterprises in Kenya. The study was grounded on the dynamic capabilities view. A descriptive cross-sectional survey research design was adopted to achieve the study’s objective. The sampling frame was the Klynveld Peat Marwick Goerdeler (KPMG) East Africa and the Nation Media Group annual Top100 companies in Kenya.  Stratified random sampling was utilized to derive 221 companies that were used in the study. Primary data were collected from single respondents comprising senior managers of the participating firms. A total of 134 questionnaires were analysed. Ordinary least squares regression analysis revealed that entrepreneurial orientation positively and significantly influenced business model innovation in medium enterprises in Kenya. On the basis of the results, this study concluded that entrepreneurial orientation is necessary for enterprises to benefit from business model innovation. The study recommends that managers of medium enterprises in Kenya embrace entrepreneurial behaviour and attitude to enhance business model innovation practices.   It is further recommended that policymakers should develop and implement policies that encourage innovation and entrepreneurial behaviour. The study clarifies the position of entrepreneurial orientation in relation to BMI. Additional studies are recommended