Innovation Capability Strategy and Firm Performance in The Furniture Manufacturing Sector in Kenya

The study sought to examine the contribution of innovation capability in strategyimplementation on the firm performance of the furniture manufacturing sector inKenya. It utilized a descriptive and explanatory research design with a populationconsisting of 686 managerial staff in the furniture manufacturing sector. The sampleof 280 licensed firms was randomly selected by distributing questionnaires to themanagers. A factor analysis was used to reduce the number of variables and establishthe underlying constructs while analysis of moments of structures was applied todevelop theory. It was found that innovation capability had a positive and statisticallysignificant contribution to firm performance. The firm size and firm age were foundnot to have a moderating effect on the firm performance. The study provides anexpansion of the conceptualization of the innovation capability framework. Thefindings showed that - in order to respond effectively to the business environmentthat has become so dynamic - firms particularly in the manufacturing sector need tofind creative ways of adjusting their strategy implementation tactics in line withchanges in the business environment