The Role of innovation in attaining sustainable competitive advantage among Deposit-Taking Savings and Credit Cooperatives (SACCOS) in Nairobi County, Kenya

Researchers seem to agree that innovations are of critical importance in sustaining a competitive advantage of any firm. Organizations that adopt new innovations are seen to have a competitive advantage when they introduce new and unique ideas, products and services. The study’s key objective was to establish the influence of innovation on sustainable competitive advantage among DT-SACCOs in Nairobi County, Kenya. Specifically, it intended to; determine the relationship between incremental innovation and DT-SACCOs’ sustainable competitive advantage, analyze the relationship between disruptive innovation and DT-SACCOs’ sustainable competitive advantage and determine how radical innovation and DT-SACCOs’ sustainable competitive advantage relate. The research adopted the resource-based view theory. This research used a cross sectional descriptive survey design. The study population was the 42 DT-SACCOs with headquarters in Nairobi County, Kenya. The study used primary data which was obtained using questionnaires. A multiple linear regression model was used to show the relationship between the variables. The study findings reveal that incremental innovation, disruptive innovation and radical innovation influenced DT-SACCOs sustainable competitive advantage positively. The regression and correlation results indicated that there was a positive and significant relation between incremental innovation, disruptive innovation, radical innovation and DT-SACCOs sustainable competitive advantage. Among the three independent variables, incremental innovation had the highest contribution to sustainable competitive advantage in the DT-SACCOs while overall, all three variables had a significant contribution to sustainable competitive advantage. The study recommends the need for having more DT-SACCOs having a mix of incremental innovation, disruptive and radical innovation as this will boost DT-SACCOs sustainable competitive advantage. The findings will help managers to focus on critical success factors for success within their organizations hence improving the competitive advantage of their businesses. The main limitation of the study was that it covered innovation in only DT-SACCOs so there would be need for further research on other types of SACCOs or other sectors.
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Disruptive innovation, Incremental innovation, Radical innovation, Sustainable competitive advantage, Deposit-Taking Savings and Credit Cooperatives (DT-SACCOs)