Influence of innovation orientation on organizational performance of suppliers in the telecommunication industry in Kenya
Date
2022
Authors
Kimani, James Kinyanjui
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Publisher
Strathmore University
Abstract
To realize superior organizational performance under the highly regulated, highly competitive and dynamic business environment, firms operating within highly competitive and challenging environment need to improve their internal resources, be innovation oriented and remain strategic to ensure their survival. The telecommunication suppliers in Kenya are facing various challenges including stiff competition among themselves, low barriers to entry, corruption, poor corporate governance structure and the need for continuous training of personnel to cope with the highly changing technologies. In the face of these challenges, telecommunication suppliers need to adopt innovations that guarantee them improved performance. The innovation orientation adopted by the suppliers in this industry is therefore vital in ensuring development of new technologies, improved operations and ensuring timely delivery of services. This study sought to analyze the influence of innovation orientation on the organizational performance of suppliers working in the telecommunication industry in Kenya. This study was guided by positivism research philosophy. This study adopted both descriptive and explanatory research designs. The population of this study comprised of 688 telecommunication suppliers registered with Communication Authority of Kenya. The study was based on sample size of 322 companies/suppliers in the telecommunication industry in Kenya. This study used probability sampling technique, specifically, simple random sampling technique to select the companies that were included in the sample. Primary data was collected using a questionnaire. The study used multiple linear regression modeling data analysis techniques. Model summary results established that innovation intention, innovation infrastructure and intention to sustain innovation explain 61.3% of performance of the suppliers in the telecommunication industry in Kenya. Regression coefficient of innovation intention and performance of the suppliers in the telecommunication industry has the greatest positive and significant relationship (β=.319, p=0.000 5). Competitive strategy has partial significant meditation effect on the relationship between innovation orientation and organization performance of the suppliers in the telecommunication industry in Kenya. The study recommends the need in the telecommunication suppliers to support product and service innovation through research and development. There is need to facilitate cooperation in innovative activities among different stakeholder including firm management, employees, entrepreneurs, public sector, private sector, government, platform operators and academia. There is need for the management of supply firms in the telecommunication industry to seek the commitment of employees and innovators in incorporating new innovations in the organization through reward and recognition for innovative ideas.
Description
A Dissertation submitted in partial fulfillment of the requirements for the award of the degree of Master of business administration of Strathmore University
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