STRATEGIC INNOVATION AND PERFORMANCE OF OIL MARKETING FIRMS IN NAIROBI CITY COUNTY, KENYA
Denard Otsula Majimbo - Master in Business Administration (Strategic Management), Kenyatta University, Kenya
Dr. Mary Namusonge (PhD) - Department of Business Administration, School of Business, Kenyatta University, Kenya
ABSTRACT
The number of oil marketing firms operating in Nairobi City County have continued to increase in number. This has affected their performance as the oil marketing firms compete with each other. The stiff competition has made the oil marketing firms to either exit the market or develop new strategies such as strategic management to enhance their performance. However it was observed that there is limited empirical studies on the relationship between strategic innovation and performance of the oil marketing firms in Nairobi City County. Therefore the aim of this study was to establish the effect of strategic innovation on the performance of the oil marketing firms in Nairobi City County. The first specific objective was to establish the effect of product innovation on the performance of the oil marketing firms. The second specific objective was to determine the effect of market innovation on the performance of the oil marketing firms. The third specific objective was to investigate the effect of process innovation on the performance of the oil marketing firms. The fourth specific objective was to determine the effect of organizational innovation on the performance of the oil marketing firms. The study was based on knowledge based theory, innovation based theory and resource based theory. The study used a descriptive research design. The target population was the 94 registered oil marketing firms in Nairobi City County. The sample size was 35 oil marketing firms in which the general managers were the respondents. Closed ended questionnaires were used to collect primary data. Statistical Package for Social Sciences version 23 by IBM was used to analyse the data. Measures of mean and standard deviation were used in descriptive statistics and inferential statistics involved correlation analysis and multiple regression analysis to determine the relationship between the different variables. The study found a positive and significant relationship between product innovation and performance of the oil marketing firms in Nairobi City County, a positive and significant relationship between market innovation and performance of the oil marketing firms in Nairobi City County, a positive and significant relation between process innovation and performance of the oil marketing firms and a positive and significant relationship between organizational innovation and performance of the oil marketing firms in Nairobi City County. Thus the study concluded that strategic innovation has a strong and positive influence on the performance of the oil marketing firms in Nairobi City County. The study recommends the oil marketing firms should make continuous improvements to their products and processes. The oil marketing firms should set aside funds for research and development. The oil marketing firms should reward their employees when they come up with new ideas. The management should support employees working in the teams dealing with different project within the oil marketing firm.
