The role of human capital and entrepreneurial orientation on radical product innovations in small scale carpentry workshops in Nairobi

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Publication Date: 
01 January 2008
Author: 
Matanda Margaret
UN Millennium Development Goal: 
Eradicate extreme poverty and hunger
Related group: 

There is some emerging evidence that entrepreneurial orientation leads to the adoption of radical product innovations particularly in small enterprises. However, few studies have attempted to investigate how the characteristics of entrepreneurs moderate and mediate the relationship between entrepreneurial orientation and radical product innovation. This study adopts the human capital theory to address this gap in knowledge. The paper argues that human capital factors and entrepreneurial orientation influence the adoption of radical product innovations. A survey research design was adopted to test this proposition using a sample of 218 small scale carpentry workshops in Nairobi, Kenya. Estimation results using a logit model, indicate that having parents in business together with entrepreneurial orientation lead to the adoption of radical productinnovations. Provision of role models and adopting an entrepreneurial orientation are strategic options that can be used to enhance radical product innovations in small enterprises.