Entrepreneurial Innovativeness and Financial Performance of Small-Scale Pig Farmers in Kiambu County, Kenya

Abstract

Pig production enterprises are among the fastest-growing livestock sectors globally, with significant growth in developing countries. There has been a notable shift from ruminant to mono-gastric livestock production due to the shorter time required to reach market maturity. Despite the presence of an established pig industry, the expanding value chain faces various challenges and remains underexploited, leading to low performance. Superior performance in such a dynamic environment is crucial for the survival of pig farms. However, the lack of well-defined strategies to drive improvement has contributed to the sector's suboptimal performance. This study is an extract of a bigger study that examined how strategic management practices affect the financial performance of pig farmers. The specific focus is influence of entrepreneurial innovativeness on the financial performance of small-scale pig farmers in Kiambu County. Specifically, it aimed to assess the effects of new markets, new products, new sources of raw materials, and new processes on financial performance. The research was anchored on the Profit and Value Maximization theory and Schumpeter’s theory of innovation. A survey research design was adopted, collecting field data from six sub-counties in Kiambu County. From a target population of 750 pig farmers, a sample of 87 respondents was selected through stratified random sampling. Data was gathered using structured and semi-structured questionnaires, achieving a reliability coefficient of 0.85. Descriptive and inferential statistics were used to analyze the data. The findings revealed that the coefficient of determination was 0.7160, indicating that 71.60% of the variation in financial performance can be attributed to entrepreneurial innovativeness. These findings were further supported by a positive relationship between entrepreneurial innovativeness and the financial performance of small-scale pig farmers, with p-values being positive and significant at 0.029, where β = 0.278 and p < 0.05. The beta coefficient for the relationship between the two variables was both positive and significant, implying that the null hypothesis was rejected. Hence, entrepreneurial innovativeness significantly affects the financial performance of pig farms in Kiambu County. Based on these findings, the study recommends that pig farmers adopt strategic entrepreneurial innovative practices to enhance financial performance. Additionally, policymakers should create incentive-driven policies to promote innovation in farming, recognizing agriculture’s critical contribution to Kenya’s GDP. Moreover, future research should focus on developing accessible models for registering and tracking innovations to protect the intellectual property of farmers, enabling them to share strategic insights without compromising their competitive advantage.