ISSN: 2226-6348
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.
Ahu, T. K. (2015) Effects of Innovation Strategy on Firm Performance: A Study Conducted on Manufacturing Firms in Turkey. Procedia - Social and Behavioral Sciences 195 (2015) 1338 – 1347.
Ajai, S.G., Sanjaya, S.G. (2016). Statistical Methods for Practice and Research. A Guide to Data Analysis using SPSS. New Delhi: Sage Publishers.
Almatrooshi, B., Kumar, S. & Farouk,S. (2016) "Determinants of Organizational Performance: A Proposed Framework", International Journal of Productivity and Performance Management, 65(6). 844-859.
DOI: 10.1108/IJPPM-02-2016-0038
Bryan, R. (2016) "Resonant co-creation as an approach to strategic innovation". Journal of Organizational Change Management. 29(7). 1135-1152. DOI: 10.1108/JOCM-01-2015-0009
Christian, L., Mothe, C., Uyen, T., Nguyen, T. (2015) "The Differentiated Impacts of Organizational Innovation Practices on Technological Innovation Persistence", European Journal of Innovation Management. 18(1) 110-127. DOI: 10.1108/EJIM-09-2012-0085
Cohen, L., Manion, L., Morrison, K. (2007): Research Methods in Education. (6th ed).UK .Routledge Publications.
Chen,J. Jiao, H., Zhao, X. (2016) "A Knowledge-Based Theory of The Firm: Managing Innovation In Biotechnology", Chinese Management Studies, 10 (1), pp.41-58. DOI: 10.1108/CMS-11-2015-0273
Cohen, J., Cohen, P., West, S.G. & Aiken, L.S. (2013) Applied Multiple Regression and Correlation Analysis for the Behavioral Science. New York. Routledge.
Communications Authority of Kenya [CAK], (2017). First Quarter Sector Statistics Report for the Financial Year 2017/2018.http://www.ca.go.ke/images/downloads/STATISTICS/Sector%20Statistics%20Report%20Q1%20%202017-18.pdf. Retrieved on 2nd April 2018.
Faruk, K., Gary, S. L. (2015) The Impact of Strategic Innovation Management Practices on Firm Innovation Performance. Research Journal of Business and Management – (RJBM), ISSN: 2148-6689.
Fethi, C., Cigdem, A., Gumussoy, E.G., (2013) "Impacts of Learning Orientation on Product Innovation Performance", the Learning Organization, 20(3), 176-194. DOI: 10.1108/09696471311328442.
Fu, F. P., Bosak J., Morris, T, O'Regan, P. (2015) "How do High Performance Work Systems Influence Organizational Innovation in Professional Service Firms?” Employee Relations, 37(2). 209-231.
DOI: 10.1108/ER-10-2013-0155
Gebauer, H., Worch, H. & Truffer, B. (2012). Absorptive Capacity, Learning Processes and Combinative Capabilities as Determinants of Strategic Innovation. European Management Journal, 40(2) 57-73.
Guisado, M., Guisado,T. M. ,Sandoval,P. Á. (2013), “Determinants of Innovation Performance in Spanish Hospitality Companies: Analysis of The Coexistence of Innovation Strategies”, The Service Industries Journal, 33(6). 580-593.
Gomezelj, D.O (2016) "A systematic Review of Research on Innovation in Hospitality and Tourism", International Journal of Contemporary Hospitality Management, 28 (3), pp.516-558. DOI: 10.1108/IJCHM-10-2014-0510
Löfsten, H. (2014) "Product Innovation Processes and the Trade-Off between Product
Innovation Performance and Business Performance", European Journal of Innovation Management, 17(1), pp.61-84. DOI: 10.1108/EJIM-04-2013-0034
Hsiu,H.C. (2017) "The Antecedents of Creative Article Diffusion on Blogs: Integrating Innovation Diffusion Theory and Social Network Theory", Online Information Review,41 ( 1), pp.70-84. DOI: 10.1108/OIR-07-2015-0221
Hajar, I. (2015) The Effect of Business Strategy on Innovation and Firm Performance in the Small Industrial Sector. The International Journal of Engineering and Science (IJES). 4 (2) PP.01-09.
ICT Authority, (2014). Fiber Optic Cable Continues Roll-Out.
http://www.icta.go.ke/fibre-optic-cable-continues-roll. Retrieved 30th July 2017.
Kariuki, J. N. (2014).The Effect of Strategic Innovation on Performance of Mobile Telecommunication Firms in Kenya. Master’s Thesis University of Nairobi.
Kumar, J. N., Priyanka, S. (2015). Fundamentals of Research Methodology: Problems and Prosp
In-Text Citation: (Laban & Deya, 2019)
To Cite this Article: Laban, O. M., & Deya, J. (2019). Strategic Innovations and the Performance of Information Communication Technology Firms in Nairobi Kenya. International Journal of Academic Research in Progressive Education and Development, 8(2), 1–24.
Copyright: © 2019 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode