INFLUENCE OF INNOVATION STRATEGIES ON PERFORMANCE OF INTERNET SERVICE PROVIDER COMPANIES IN NAIROBI KENYA

Abstract

Purpose: The main aim of this study was to assess the influence of innovation strategies on performance of Internet Service Provider Companies in Nairobi Kenya. The study specifically aims at assessing the influence of product innovation, process innovation, market innovation and technological innovation on performance of Internet Service Provider Companies in Nairobi Kenya. Despite the substantial number of empirical studies in strategic management, research on the relationship between innovation strategies and firm performance has not yet reached a definitive consensus on whether firms are better off remaining focused or diversifying in different businesses.
 Methodology: The study adopted the Diffusion of Innovation Theory, Technology Acceptance Model, Resource Based View, Herman Kahn Scenario Thinking Theory and Theory of disruptive innovation. This research used a descriptive survey design. The study population was 228 managers from Marketing, IT, Product Development and Business Intelligence drawn from the 60 internet Service provider companies licensed by Communication Authority of Kenya. The study adopted stratified sampling technique. The sample size was 146 respondents. This study used primary data obtained from the original sources using questionnaires. Data collected from the questionnaires was converted from responses to quantitative format for ease in analysis using statistical package for social sciences (SPSS). The statistics generated was descriptive statistics which included frequencies and percentages and inferential statistics which included a multiple linear regression. A multiple linear regression model was used to show the relationship between the dependent and independent variables.
 Findings: The study revealed that product innovation strategy, process innovation strategy, market innovation strategy and technological innovation strategy positively and significantly influence performance of Internet Service Provider Companies in Nairobi Kenya.
 Unique contribution to theory, practice and policy: Based on the findings, study recommended that Internet Service Provider Companies in Nairobi, Kenya should stipulate policies that provide and enhance platforms for marketing innovation so as to improve performance in the internet service provider companies. There is need also to invest in marketing innovation strategies including pricing, future customer engagement, product placement and product promotional avenues so as to improve performance in the internet service provider.