EXPLORATION INNOVATIVE STRATEGY AND PERFORMANCE OF THE TELECOMMUNICATION INDUSTRY IN KENYA: A CASE OF SAFARICOM PLC IN NAIROBI METROPOLIS
Silvester Mugo Gachigo - Master in Business Administration, St. Paul’s University, Kenya
Dr. Julius Kahuthia - Lecturer, Department of Business Administration, St. Paul’s University, Kenya
Dr. Charity Muraguri - Lecturer, Department of Business Administration, St. Paul’s University, Kenya
ABSTRACT
Formulating and implementing an effective innovation strategy to enhance business performance is of concern to any dynamic looking organization. A look at the telecommunication industry in Kenya shows that most firms have not fully integrated innovation and as a result have not been able to perform optimally. Therefore, an assessment of innovation strategies that influence performance is important. Continuous innovation, development of the right innovation strategies and their successful implementation guarantees optimal performance, growth and success of organizations, which in-turn is the object of any organization. The study sought to assess the influence of innovative strategies on the performance of telecommunication industry in Kenya; A case of Safaricom PLC. The specific objectives of the study were to examine how successful implementation of Innovative strategies; Exploration innovative strategy, disruptive innovation strategy, outcome driven strategies and cannibalization strategy; influence the performance of the telecommunication industry in Kenya. The researcher was guided by the following theories; Open innovation theory, disruptive innovation theory and jobs to be done theory. The study used a descriptive design and the population under study comprised all employees of Safaricom PLC within all the 58 branches in Nairobi County. Primary data collection was done through the use of a questionnaire and data analyzed was presented through the use of charts, graphs and tables in order to aid in making conclusions and recommendations. The study found out that a unit change innovation strategies leads to a 40.2% increase in organization performance; given by the coefficient of determination r square at .402 from regression analysis. The study also found out that a unit change in exploratory innovative strategy, disruptive innovative strategy and outcome driven innovative strategy leads to an increase in organizational performance with coefficients of .234, .647 and .375 respetively; while a unit change in cannibalization leads to a decrease in organizational performance with a coefficient of -.609. The study recommended that the management of the telecommunication industry in Kenya should set aside adequate budget to establish proper technological infrastructure, hire qualified experts, and create avenues to share innovative ideas, set up a research and development department and create a conducive environment for innovation and the government should create a business environment that encourages and supports innovation in the telecommunication industry. The study suggested that further studies should be carried out on other determinates that affect organization performance.
