Abstract: This study’s general objective was to establish the effect of innovation strategies on performance of firms listed at the Nairobi securities exchange in Kenya. This study used descriptive study design. The study’s population was 66 NSE listed firms. The study respondents were 198 from the 66 firms who included strategy directors, marketing directors and operations directors. Secondary and primary data was used. Primary data was collected using questionnaire and audited financial statements were the source of secondary data. The drop-and-pick method was applied in questionnaire administration since all the firms had headquarters in Nairobi. Pilot testing was conducted to evaluate the validity and reliability of the methodology and questionnaire. Descriptive analysis was used where statistics such as frequencies, percentages, means and standard deviations were derived. This enabled the study to establish the distribution and prevalence of innovation strategies in the firms listed in the NSE. The study used multiple regression analysis to establish the effect of organization innovation, product innovation, marketing innovation and process innovation on performance of NSE listed firms. The findings established that product innovation (β = 0.74; p < 0.05), marketing innovation (β = 0.073; p < 0.05), process innovation (β = 0.116; p < 0.05) and organization innovation (β = 0.144; p < 0.05) had significant positive effect on financial performance of the firms listed in the NSE. The study has the following implications. First, in the drive towards enhancing sales and market share, organizations should ensure that they continually update their products or develop new ones to deal with competition and excite customers. On marketing innovation, investigating customer needs and establishing an innovative way of meeting those needs is paramount. Process innovation strategy of the organization should follow a clear set of values for action. Lastly, for organization innovation firms should consider investing in their employees to ensure maximum output and skill-set growth.
Keywords: Product Innovation, Marketing Innovation, Process Innovation, Organization Innovation, Innovation, Performance, Nairobi Securities Exchange.
Title: INFLUENCE OF INNOVATION STRATEGIES ON PERFORMANCE OF FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE
Author: Yolanda Mutenyo Webi, Paul Kariuki
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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