Effect of Supplier and Customer Collaboration on Product Innovativeness: A Focus on Small and Medium-Sized Enterprises (SMES) in Kenya

Patrick Gudda, Henry M. Bwisa and John M. Kihoro

International Journal of Learning and Development, 2013, vol. 3, issue 5, 130-136

Abstract: This study investigated the effect of supplier and customers¡¯ collaboration on product innovativeness in manufacturing SMEs. 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 the dimensions of supplier and customer collaboration, as independent variables. The results of the supplier collaboration regression indicated that the predictors explained 45.1% of the variance (R2=.477, Adj R2=.451), F (6, 119) = 18.115, p < .001; t=1.995.; that of customer collaboration indicated that the predictors explained 38.8% of the variance (R2= .388, Adj R2= .358), F (6, 119) = 12.597, p < .001; t=6.441. Understanding customer needs is the only dimension that significantly contributed positively to predicting PI (B = 1.169, p= .056) t=1.930. It is concluded that supplier dimensions of win-win relationships, deep suppliers trust, expertise from suppliers and support in product launch will positively predict PI. Similarly, customer collaboration dimension of deep understanding of customer needs will positively predict PI. The researchers recommend the setting up of SMEs support policies that promote collaborations in research for purposes of sharing information / accessing the diverse knowledge base on new product design, development and production.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.macrothink.org/journal/index.php/ijld/article/download/4525/3730 (application/pdf)
http://www.macrothink.org/journal/index.php/ijld/article/view/4525 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mth:ijld88:v:3:y:2013:i:5:p:130-136

Access Statistics for this article

International Journal of Learning and Development is currently edited by Hugh Butler

More articles in International Journal of Learning and Development from Macrothink Institute
Bibliographic data for series maintained by Technical Support Office ().