Effect of Innovation on Performance of Dairy Farmers Cooperatives in Western Region, Kenya

Purpose: The objective of the study was to examine the effect of innovation on the performance of Dairy Farmers Cooperatives in Western Region, Kenya.Design/Methodology/Approach: The research employed a descriptive and casual study research design and guided by the research philosophy of Pragmatism. The study targeted lead farmers and Chief Executive Officers (CEOs) of dairy farmers’ cooperatives in four counties of the Western Region of Kenya. The population included 440 dairy farmers’ cooperatives (DFCs) in the area. The respondents were selected by using a combination of stratified and simple random sampling techniques. A total of 210 samples. The study employed a structured closed-ended questionnaire to collect quantitative data. Additionally, qualitative data were collected from the CEOs through interview guides.The research instruments were piloted in Trans-Nzoia County to determine their suitability. The instruments were reliability-tested using Cronbach’s alpha coefficient, whereas they were shown to be valid through content, construct and criterion validity assessment. Descriptive and inferential statistics helped to analyze the quantitative data. Use the tables and pie charts wherever applicable the descriptive analysis consisted of computing frequencies, percentages, means and standard deviations. To test the hypotheses, Pearson’s correlation, multiple regression, and hierarchical regression techniques were used for the inferential analysis.Findings: The result was that innovation do significantly affects performance of dairy farmer’s cooperatives (B=0..845: p=0.000).Implications/Originality/Value: Dairy farmers’ cooperatives should therefore invest in innovation and have a committed management that can embrace technology in their operations for posterity.