Investments in Technological Innovation and Financial Performance
of Small-Scale Tea Industry in Kenya
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The agricultural sector in Kenya has been facing the challenge of increased cost of operations as a result of outdated technology. In an attempt to reduce its operation cost tea sector has invested heavily in technology. Thus the purpose of this study was to establish the effect of technological innovation investment on financial performance of small-scale tea industry in Kenya. The study variables were investments on fermentation innovations, pruning innovations, weighing innovations and information systems innovations on the financial performance of small-scale tea firms in Kenya. This study...
The agricultural sector in Kenya has been facing the challenge of increased cost of operations as a result of outdated technology. In an attempt to reduce its operation cost tea sector has invested heavily in technology. Thus the purpose of this study was to establish the effect of technological innovation investment on financial performance of small-scale tea industry in Kenya. The study variables were investments on fermentation innovations, pruning innovations, weighing innovations and information systems innovations on the financial performance of small-scale tea firms in Kenya. This study was anchored on four theories, namely Schumpeterian Theory on Innovations, Efficiency Theory, Technology Acceptance Model and Theory of Innovation Diffusion. The targeted population was 66 small scale tea factories in Kenya. Secondary data for a period of 5yrs (2014-2018) was used for analysis using a panel regression model. It is evident that investment in technological innovations has varying implications both positive and negative to the growth of tea sector. The impacts emanating from investing on tea technologies and innovations were not exhaustive.
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