Drivers of innovation in the agro-food micro, small and medium enterprises of Uganda

Basil Ajer, Lucy Ngare and Ibrahim Macharia

Journal of Agribusiness in Developing and Emerging Economies, 2023, vol. 14, issue 5, 979-996

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.

Keywords: Agri-food sector; Customer-focused innovation; System-focused innovation; Innovation policy; Employee reward; Uganda (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jadeep:jadee-09-2022-0206

DOI: 10.1108/JADEE-09-2022-0206

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