Abstract:
The aim of this study was to determine the effect of knowledge transfer and spillover on product innovativeness (PI) in the context of manufacturing MSEs. in Kisumu, Kenya. Using a cross sectional survey design with a sample size of 196, a standard multiple linear regression (MLR) was performed between product innovativeness as the dependent variable and knowledge transfer and spillover as independent variables. The results indicate the predictors explained 13.1% of the variance (R2= .131, Adj R2 = .087), F (6, 119) = 2.981, p < .05; t = 6.590; knowledge transfer through attending conferences significantly predicted PI (8 =-.746, p< .05) t=.- 2.021 as did having adequate knowledge (8 =.1.091, P < .05) t=2.73 6. The study established that knowledge transfer significantly enhance PI. The study recommends the setting up of MSEs Knowledge transfer policies that promote inter-firm interaction and alliances with university/research institutions for purposes of sharing information/ accessing the diverse knowledge base on new product design, development and production,