Interplay of Product and Technological Innovation Strategies for Performance Improvement among Government Parastatals in Kenya

Abstract

Many Kenyan parastatals struggle with financial challenges, including EPZA Athiriver. This study explores how effective innovation strategies can improve performance and address declining revenue issues. The purpose of this paper was to assess the influence of product and technological innovation strategies on the performance of government parastatals. A descriptive research design employed structured questionnaires administered to a stratified random sample of 109 employees from Finance, Human Resources, and Marketing departments, of government parastatals in Kenya. The findings of the regression analysis revealed statistically significant positive relationships between Product Innovations and Performance (β=0.48, p-value=0.0137), highlighting the critical role of product innovation in driving performance improvements, as well as technological Innovations and Performance (β=0.41, p-value=0.0235), affirming technological innovation as a crucial factor in enhancing performance. The study affirms that both product and technological innovation strategies significantly impact the performance of government parastatals. These findings emphasize the transformative potential of strategic innovation for government parastatals and offer valuable insights for revitalizing their financial health.