Innovation capabilities and international competitiveness of agro-processing firms in Uganda

Abstract

Purpose This paper aims to contribute to the understanding of the relationship between the different innovation capabilities and the international competitiveness of agro-processing firms in Uganda. Design/methodology/approach This study adopted a cross-sectional research design. Data were collected through a questionnaire survey of 125 firms exporting agro-processed products that are members of the Uganda Export Promotions Board (UEPB). Data was analyzed using the Statistical Package for Social Scientists (SPSS). Findings The study established that product innovation capabilities and organizational innovation capabilities are positively related to the international competitiveness of agro-processing firms in Uganda while process innovation capabilities and marketing innovation capabilities are not. Research limitations/implications A structured questionnaire was used to solicit responses and no follow-up interviews were conducted to inform the reasons behind the respondents’ responses. Nevertheless, the study reveals that agro-processing firms in Uganda should concentrate on building product and organizational innovation capabilities if they are to compete effectively in international markets. Originality/value To the authors’ knowledge, this is the first study to investigate the relationship between the four forms of innovation capabilities (product, process, marketing and organizational) and international competitiveness particularly among agro-processing firms from an African country.