Strategic Innovation Management Practices and Performance of Safaricom Public Listed Company in Kenya

Abstract

The world is changing swiftly and firms are striving to cope with these changes to remain relevant competitive and continuously meet evolving needs of the customers. Strategic innovation management practices (SIMP) is instrumental in shaping key decisions on innovation and performance of the firm. The objective of this study was to determine the influence of strategic innovation management practices on performance of Safaricom PLC in Kenya. This research was set out to determine the influence of SIMP on firm performance of Safaricom PLC in Kenya. A case study design was employed to enable the researcher to conduct an in-depth investigation of Safaricom PLC through establishing the influence of SIMP on firm performance. An interview guide was applied to collect primary data by interviewing five Heads of Departments: Finance, Customer Management, Operations Management, Marketing and Strategy and Innovation and data analysis was done using content analysis. It was concluded that allocation of funds, resources and facilities, adoption of an accommodative culture and recognition and reward including continuous training and development programmes were the most commonly utilized strategic innovation management practices by Safaricom PLC. This provided a conducive environment for Safaricom PLC to successfully implement strategic innovation management practices. Use of SIMP by Safaricom PLC formed strong bonds with the customers, developed a positive customer perception of their products and services, minimized customer complaints and added value to products and services offered. It would be important for Communication Authority of Kenya to regulate innovations by telecommunication firms to ensure consumer protection and to promote fair competition among telecommunication firms. Most of the target interviewees requested their assistants to get interviewed on their behalf however, this might impact negatively on the quality of the findings since these interviewees (Heads of Departments) are directly involved in making decisions and strategy setting and thus are more exposed and have the most accurate and reliable information unlike their deputies. The researcher was limited to scope because of constraints of time and resources that led to an investigation of only one telecommunication firm, Safaricom PLC. It would be more helpful for future researchers to consider doing similar research that will cover all telecommunication firms in Kenya so as to compare findings, and then more detailed and reliable findings can be drawn on the basis of facts.