Drivers of Innovation in The Agro-Food Micro, Small and Medium Enterprises of Uganda

Abstract

Purpose – With focus on Uganda, this study assessed the factors influencing agro-food micro, small and medium enterprises (MSME) innovations. Kampala, Wakiso, Mukono and Jinja districts were the locations of the research. Design/methodology/approach – Primary cross-sectional data was collected using structured questionnaire for a sample of 521 agro-food MSMEs in Uganda. Descriptive statistics, exploratory factor analysis and hierarchical regression analysis were used to examine the data in SPSS. Findings – The findings indicate that MSME innovation levels were usually high, at roughly 80%. The presence of rules that encourage innovation and reward creative people would enhance innovation that is customer-focused. On the other hand, policies and principles that encourage innovation and the conduct of internal product and process improvement research would promote system-focused innovation. Research limitations/implications – Encouraging agro-food MSMEs to develop policies that support innovation would improve the overall level of innovation, while building the capacity of agro-food MSMEs to conduct product and process improvement research would increase the level of systems-focused research. Originality/value – This study assessed the drivers of innovation in agri-food MSMEs in a developing country. The uniqueness of this study is in assessing the effects of innovation support services on customer-focused and systems-focused innovations.