The Role of Organizational Innovation in Sustainable Competitive Advantage in Universities in Kenya

Abstract

Purpose-The purpose of this research was to assess the role of organizational innovation in sustainable competitive advantage of universities in Kenya. Specifically, the study examined the role of product innovation, administration innovation, and process innovation in sustainable competitive advantage of universities in Kenya. Design/methodology/approach-The paper adopted a cross-sectional survey design to generate quantitative data to test the research hypotheses. Stratified random sampling technique was used to select a sample of 57 universities out of a target population of 67 universities accredited to undertake university education in Kenya. Primary data was collected by use of self administered questionnaires which were distributed through drop and pick method to a total sample size of 285 academic leaders selected by purposive sampling. A total of 215 complete responses were used for analyses. Data analysis was by descriptive statistics and inferential statistics using the Statistical Packages for Social Sciences (SPSS) version 24. Simple and multiple regression analyses were used for hypotheses testing. Findings-This research provides empirical evidence on the links between organizational innovation and sustainable competitive advantage. Results revealed that organizational innovation, product innovation, administration innovation, and process innovation play significant role in sustainable competitive advantage of universities in Kenya. The research concluded that organizational innovation forms the basis for building sustainable competitive advantage. Research limitations/implications-This research has some important limitations that need to be taken into consideration. The study used a cross-sectional survey design with only quantitative measures which can be improved upon by longitudinal studies with mixed quantitative and quantitative measures. Practical implications-The research has significantly attempted to expand extant literature in strategic management, organizational innovation and sustainable competitive advantage by making several significant contributions.

The Impact of Internal Service Quality on Organizational Innovation Examining the Mediating Role of Organizational Commitment: “An Empirical Study in the Foreign Banks in Jordan”

“…The three components of organizational innovation as identified by Kising'U, et al (2016) are: Administrative Innovation, Product Innovation, Process innovation) .Therefore, the research paper will discuss organizational innovation in accordance with the finding of Kising'U, et al (i.e., the three components of organizational innovation) (Kising'U, et al, 2016) …”

“…Also The organizational commitment of the organizations will enhance the organizational innovation as instilling the spirit of belonging to the employee pays him to stay in and contribute to the success of the organization This result is supported by a study that was conducted by Singh (2016) who concluded that the quality of internal service has a significant impact on the performance and satisfaction of employees. Furthermore, Several studies have indicated that the importance of organizational innovation in improving performance and improving the financial performance of banks (Kising'u et al, 2016;Fadil et al, 2016;Hsieh, 2004;Oria & Kibait.,2016).…”

“…Gallego et al (2013) viewed organizational innovation as "a new organizational method in the organization's business practices ,Where the workplace and external relations are organized in ways that have not previously used in the organization" .According to (Kising'U, et al, 2016) organization innovation refers to the implementation of new ideas in the company to create added value directly to the company or indirectly to its customers, whether the renewal or value added embodied in the services or processes or products or organization of work or management or marketing systems.…”

“…Alrubaiee et al (2015) stated that Process Innovation refers to the redesigning or improvement of business through the introduction or development of new equipment, in order to enhance business efficiency and reach customer satisfaction. This form of innovation contributes to achieving the objectives of the organization, in addition to maintaining the competitive advantage of the organization (Kising'U, et al, 2016) ijbm.ccsenet.org International Journal of Business and Management Vol. 12, No.…”

Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth in Facing Economic Downturns

“…Teece and Pisano [53] and Teece et al [54] suggested that the winners in the global market are companies that demonstrate timely responsiveness and innovation that is fast and flexible [55,56], together with management's ability to coordinate effectively and re-apply internal and external competencies [57]. However, Miranda and Figueiredo [58] distinguish routine and innovative companies based on technological innovation capabilities with the factors that shape vision and strategy capabilities [51,52], utilization of competency bases, organizational intelligence, creativity and idea management, organizational structures and systems, culture and climate and technology management [53]. Saunila defines innovation capabilities by influencing an organization's ability to manage innovation [53].…”