Mobile Technology as an Enabler of Innovation in Kenya’s Micro, Small and Medium Establishments

Abstract

The interface between mobile phone technologies and innovation remains largely under-researched. Attempting to bridge this knowledge gap, this cross-sectional study of Kenyan enterprises examines the role of mobile phone technologies in innovation. The study applies probit estimators to a comprehensive dataset of 24, 164 micro, small and medium establishments in Kenya. The study reveals that; (1) mobile technologies are positively and significantly correlated with product and marketing innovation but are insignificantly correlated with process innovation. (2) The predicted probabilities of product, process and marketing innovation increase with the increase in the ICT index. (3) The effect of age and size on the propensity of innovation is concave: older and larger establishments tend to innovate more than relatively younger and smaller ones, but the relationships get reversed after a certain threshold. (3) The predicted probability of product, process and marketing innovation increase with increases in R&D, training, credit and foreign trade.