Product Innovation and the Competitive Advantage of Telecommunication Companies in Kenya

Abstract

The rapid expansion of the global market in the telecommunications industry has created intense competition that necessitates active market innovations. To survive, organizations must have a competitive advantage to stay ahead of the competition. Product innovation encourages business effectiveness and organizations are increasingly being compelled to create new products, upgrade, or improve existing product features to fulfill their clients' needs and remain competitive. It is from this background that this study sought to establish the influence of market innovation on the competitive advantage of telecommunication companies in Kenya. Using a positivist philosophy, this study adopted an explanatory research design. The main data collection instrument was a structured questionnaire where 247 responses from mid and top level managers in a total of 26 active telecommunications companies in Kenya. The study used both descriptive and inferential statistics to interpret the data. From the study findings, it was established that new products, products upgrading, and improved product features have a significant influence on the competitive advantage of telecommunication companies in Kenya. This led to the conclusion that product innovation has a significant influence on the competitive advantage of telecommunication companies in Kenya. The study recommends a need to increase government funding and research missions from bodies like NACOSTI and other research firms, to support researchers involved in product innovation while at the same time tap into existing telecommunication companies for experimental purposes. The study faced limitations when visiting the field during the COVID-19 pandemic period encountering entry restrictions. All protocols were observed to overcome this obstacle. Some telecommunications companies were facing operational difficulties and could not particpate. Further studies for product innovation would perhaps suffice after the pandemic period.