Abstract: Innovation is a concept that has evolved over the past five decades and from the previous literature review it is confirmed to affect performance positively. Studies done in Pakistan and other countries have confirmed the positive relationship between innovation and performance in Non Profit Organizations. However, limited studies have been done in Non Profit Organizations here in Kenya. The study therefore attempts to fill that gap by addressing the following research objective; to determine the effect of organizational innovation on Organization Performance of Non Profit Organizations in Kenya. The study was anchored on three theories; Porters Generic Strategies; Diffusion Theory of Innovation and Schumpeter Theory of Innovation. The study adopted a descriptive cross sectional research design. The target population was the top and middle managers of Non Profit Organizations in Kenya which were selected through random sampling. Data was collected through questionnaire and analyzed through SPSS analysis software. The result of the effect of organizational innovation on organizational performance indicated a strong positive correlation between the variables with a coefficient of correlations (r) of 0.722. The coefficient of determination (R2) was 0.522 which indicated that 52.2% of change in organization performance in the Kenyan NPOs could be attributed to innovation (P<0.05). The study concluded that organization innovation is a good predictor of organization performance and hence recommended that; For the NPOs in Kenya to achieve enhanced organizational performance, they should come up with organization innovation practices within the organization which should be encouraged and embraced by all so as to achieve increased organizational performance.
Keywords: Organization performance, Organizational performance.
Title: Organizational Innovation and Performance of Nonprofit Organizations in Kenya
Author: Ahawo Roy Odhiambo
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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