Abstract: Product innovation has progressed over the past several decades and from the previous studies it is confirmed to affect performance positively. This study attempts to fill that gap on innovation in humanitarian organizations by addressing the following research objective; to determine the effect of product innovation on Organization Performance of humanitarian 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 humanitarian organizations in Kenya which were selected through random sampling. Data was collected through questionnaire and analyzed through SPSS software. The result of the effect of product innovation on organizational performance indicated a strong positive correlation between the variables with a coefficient of correlations (r) of 0.523. The coefficient of determination (R2) was 0.273 which indicated that 27.3% of change in organization performance in the humanitarian organization in Kenyan could be attributed to innovation (P<0.05). The study concluded that product innovation is a good predictor of organization performance and hence recommended that; for the humanitarianorganizations in Kenya to achieve enhanced organizational performance, they should come up with product based innovation within the organization which should be encouraged and embraced by all so as to achieve increased organizational performance.
Keywords: Product Innovation, Performance, Nonprofit organization.
Title: Product 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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