Continuous Improvement and Operational Excellence Among Internet Service Providers in Kenya

Abstract

Continuous improvement is a quality philosophy which infers that improvements on processes, services and products are always possible and organizations should continuously reevaluate them, initiate and implement improvements (Singh & Singh, 2015). Operational excellence is the creation of a sustainable competitive advantage by reliably and consistently executing business strategy than the competitors. As internet demand and penetration increases in the country so does the number of internet service providers. Internet service providers face challenges from increased competition from existing and new entrants in the market, the dynamic and ever-changing business environment and customers who have become more knowledgeable and demanding. The margin of error thus shrinking and anything less than perfection can result in permanent consequences. This has resulted in ISPs implementing continuous improvement in order to achieve operational excellence. The main objectives of the study were to determine the continuous improvement approaches implemented by internet service providers and the relationship between continuous improvement and operational excellence. The target population was 59 internet service providers. Data was collected by issuing questionnaires to the operation managers or their equivalent of the ISPs and there was a 78% response rate. Descriptive survey research design was used for data analysis. The study revealed that the 91.3% of the ISPs implemented continuous improvement. The most popular continuous improvement approaches were balanced scorecard at 39.1% and TQM at 30.4%. The study also investigated the extent continuous improvement success factors have been implemented. The study focused on top management commitment and leadership, customer focus, training and learning, performance measurement and improvement and employee involvement and recognition. The study revealed that customer focus, performance measurement and improvement and employee involvement and recognition had implemented to a large extent by ISPs. Additionally, the study established that the CI success factors had a positive relationship with operational excellence and they explained an 89.4% variance in operational excellence. Continuous improvement improved the quality of products and services offered by ISPs, streamlined their processes, reduced wastage and increased their productivity and competitive advantage. The study recommends that internet service providers should continue implementing continuous improvement in order to achieve operational excellence as there is evidence that continuous improvement positively influences a company’s operational excellence. The study faced the following limitations some respondents were not familiar with the operational management terms and practices and required some explanations. There was lack of cooperation by some respondents as they viewed the research to be of little value to them. The study recommends that study should be done on the specific continuous improvement approaches and their impact to organizations. This will enable organizations to better identify the best continuous improvement approaches that can best fit them and will be of great value.