Strategic Innovation and Communication on the Performance of Building Construction Companies in Nairobi Kenya

Abstract

Construction sector has been facing declined in performance despite the immense growth in construction projects. The study sought to examine the influence of strategic innovation and strategic communication on the performance of building construction companies in Nairobi Kenya. The study was informed by diffusion theory of innovation and technology acceptance theory. A descriptive and cross-sectional research design was used while the target population comprised of CEOs drawn from 126 registered building construction companies in Nairobi County. The study used a sample size of 96 CEOs, sampled through a combination of stratified random and purposive sampling techniques. A structured questionnaire was used to collect the data. Prior to main data collection, a pilot study involving 10% of the sample size was conducted with a view to test for reliability and validity. While Cronbach’s alpha was used to check for reliability, both face and content validity was checked using subject-matter expert, that this the thesis supervisor, while construct validity will be tested through confirmatory factor analysis. The obtained data was analysed using both descriptive and inferential statistics through Statistical Package for Social Sciences (SPSS) Version 27. The study found that strategic innovation and strategic communication had a positive and significant influence with the performance of building construction companies in Nairobi Kenya. The study concluded that strategic innovation structures efforts around the organizational goals and ensures that all departments of the organization support them. Strategic communication helps organizations focus on and live their purpose, mission and values by aligning expectations, actions and behaviors to business objectives. The study recommended that the organization should align its innovation strategy with the overall business model and its mission, vision, and value proposition. The organization should use great communication tools to make internal communication within its team more effective, meet with employees regularly in order to improve communication and collaboration.