Investigation of barriers to innovation capacity: a case of food processing small and medium enterprises (SMEs) in Lusaka’s industrial area.
Date
2024
Authors
Kapepe, Miyanda
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
Food industry is faced with a lot of changes driven by ever changing consumer demands, adaption of new technology, family structures, health concerns and global trends. Small and medium enterprises are key in food processing and have opportunities in food production, processing and marketing targeting local and international markets. Innovation enhances a firm's competitiveness and production capacity. The role of innovation in enhancing returns on investment and market penetration is underscored by the struggles faced by several food processing SMEs in Zambia. This study, therefore, sought to comprehensively investigate barriers to innovation capacity among food processing Small and Medium Enterprises in Lusaka’s Industrial Area. To achieve the objectives of the study, primary data was collected from 100 food processing SMEs and analyzed using SPSS version 25. Logistic regression model and cross tabulations were used to Analyse results. The study highlights the interplay of factors such as innovation costs, market dominance, and uncertainties surrounding the innovation process. The lack of funds that firms need affects their ability to innovate, implying that lack of funds hampers the ability to innovate. In relation to innovation cost; firms reported that they encounter innovation costs however, innovation cost in itself does not lead to failure to engage in innovations. It is an important factor to consider in the innovation process for individual companies; however, it is not a key factor in determining the firm’s ability to innovate. The study suggests strategic initiatives to mitigate these constraints, such as resource allocation, conducting cost and benefit assessments, focusing on internal innovation and clear innovation roadmaps. Future research should explore the profitability impact of innovation and research methodologies like time series to capture the capacity to innovate over an extended period.
Description
Thesis of Master of Business Administration General