Innovation Strategies and Organizational Performance: A Case Study of Telkom Kenya Limited

Abstract

The telecommunications sector in Kenya is very competitive, very dynamic with players in this sector trying to outdo the other in a bid to get more subscribers. This study sought to investigate the influences of innovation strategies on organizational performance, a case study of Telkom Kenya Limited. The specific objectives were to evaluate the process innovations and administrative innovations strategies influence on firm performance. A descriptive case study design was used to establish the influence of the independent variables (innovation strategies) on the dependent variable (performance) of Telkom Kenya Ltd. This study was based on four theories which are open innovation theory, Schumpeter creative destruction theory, disruptive innovation theory and the resource based view theory. Data for this study was collected using semi structured questionnaires. The study was a census of all the 40 employees of Telkom Kenya Ltd headquarters. The researcher used Statistical package for social scientists (SPSS) for data analysis. The study established that process innovation and administrative innovation strategies have a positive effect on organizational performance as indicated by the respondents. The management needs to focus on administrative innovations like innovations hub development, feedback platforms, automation of processes and culture change initiatives in order to fully equip employees with skills thus giving them ability to grow. The findings of the study showed that process innovation has the highest positive influence on organizational performance. Process innovations assist companies to improve on quality of their products and services through better use of technologies, equipment's resulting to operational efficiency, effectiveness brand image improvement, sales growth and market rank performance .This study recommended that management of organizations need to seriously consider the investigated innovation strategies and implement them in their organizations if they are pursuing an improvement in the levels of their organizational performance.