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International Journal of Academic Research in Progressive Education and Development

Open Access Journal

ISSN: 2226-6348

Strategic Innovations and the Performance of Information Communication Technology Firms in Nairobi Kenya

Oscar Mushivochi Laban, Jared Deya

http://dx.doi.org/10.6007/IJARPED/v8-i2/5599

Open access

This research investigated the effect of strategic innovations on organizational performance of information communication technology sector firms in Nairobi County in terms of product innovation, market innovation, process innovation and organizational innovation. A descriptive survey design was adopted. The population of study were 14 ICT firms in the cellular mobile, data and internet service segments that control 96.4% of the market share operating in Nairobi County. Data was collected from 98 respondents who included chief strategy officers, directors of strategy, directors of innovation and line managers in the firms who were purposively sampled. A structured questionnaire with open and closed ended questions designed on a Likert scale was used for data collection. Data was analyzed using descriptive statistics aided by the Statistical Package for Social Sciences (SPSS) version 21 and Microsoft Excel. Multiple regression model and analysis of variance was used to determine relationships between independent and dependent variables. Findings established that; Market innovation was the most common and the highest predictor of organizational performance followed by product innovation then process innovation while organizational innovation had the lowest impact since it was only moderately used. It’s recommended that ICT companies should invest more in research and development activities to ensure new products are launched on time, ICT companies to continue investing more in market innovation strategies for higher performance. Process innovations should also focus on aligning strategic innovations in HRM to achieve organizational performance. Managers should consider adopting organizational innovation strategies as a competitive strategy since findings indicate that it was only moderately used.