EFFECT OF COLLABORATION ON MANUFACTURING SMALL AND MEDIUM ENTERPRISES (SMES) PRODUCT INNOVATIVENESS IN KISUMU

Abstract

Abstract This study investigated the effect of Collaboration on manufacturing SMEs product innovativeness. Using a cross sectional survey design with a sample size of 126, a six-predictor logistic model was fitted to the data to test whether collaboration has a statistically significant effect on product innovativeness of manufacturing MSEs in Kisumu Town. The model prediction success was 70.6% (71.4%) for High Product Innovativeness and 69.8% for Low Product Innovativeness. Three predictors (search for new product ideas, externally source product/market information, and research institutions / universities partnerships) were significant and positive predictors of product innovativeness. Their EXP (B) values were >1 indicating that when raised by a unit, the odds ratio of the SMEs being able to manufacture innovative products rose by values equivalent to the EXP (B). It is concluded that collaboration enhances SMEs’ product innovativeness.The researchers recommend the promotion of collaborations for purposes of sharing information/ accessing the diverse knowledge base on new product design, development and production. Key