EFFECT OF STRATEGIC INNOVATIONS ON ORGANIZATIONAL PERFORMANCE
Abstract
This study aimed at examining the effect of strategic innovations on organizational performance of manufacturing firms in Kwale County. The study adopted descriptive survey design. The target population of the study comprised105 staff of manufacturing firms in Kwale County. For this study, data was collected using structured questionnaires based on the research questions. Data analysis was done with the help of Statistical Package for Social Science (SPSS) version 23. Descriptive statistics included mean and standard deviations, while inferential statistical analysis used included correlations, and multiple regression analysis. The study findings established that it has a positive and insignificant relationship with the performance of manufacturing firms. Therefore this implied that a unit increase in technological innovation would lead to an increase in organizational performance. On product innovation, regression test indicated a positive and significant effect on the organizational performance. Further, it was observed that marketing innovation had a positive and significant effect on organizational performance. The study concluded that the manufacturing firms carry out benchmark activities with the best technology in the industry. On product innovation, the study concluded that the surveyed manufacturing firms have been producing new products with a view to enhance their performance. Finally the study concluded that the manufacturing firms have invested in automating routine tasks so as to improve efficiency. The study recommend that manufacturing firms should invest in benchmarking with the best technology in the industry so as to cut a niche in the industry without necessarily reinventing the wheel. Further, the study recommends that the manufacturing firms should continuously produce new products and re-engineer existing products so as to prolong the product life cycle. Finally, it is recommended that manufacturing firms should invest in automating routine tasks so as to improve efficiency in the production process.
Key terms: Organization performance, Process innovation, Product innovation, Strategic innovation, Technology innovation
CITATION: Kiptoo, L., & Koech, P. (2019). Effect of strategic innovations on organizational performance. The Strategic Journal of Business & Change Management, 6 (2), 443 – 360.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1122
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