Abstract:
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 (β=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.
Keywords: Product Innovation, Growth, Strategy
