Implementation of Innovation Strategies at New Kenya Co-operative Creameries Limited in Response to Changes in the External Environment

Abstract

Competitive and volatile business environment requires organizations to continuously monitor and adjust their strategies in relation to the changes in the environment and hence create competitive advantage. Scholars have pointed out that innovation strategies tend to significantly improve how organizations respond to changes in the external environment. However, other scholars argue that innovation strategies if not well implemented can limit an organizations success through additional costs which are incurred during the formulation of the innovation strategies that may impact negatively on the returns. It is also not clear from the available literature, whether innovation strategies can exclusively mitigate the challenges caused by unfavorable changes in the environment or ensure maximum utilization of opportunities presented by such changes.The study sought to determine the innovation strategies implemented by the New Kenya Co-operative Creameries in response to changes in the external environment. The study used a case study design where New Kenya Co-operative Creamerieswas studied. The study employed primary data and secondary data. The primary data was collected by use of interview guide with the key respondents being the managers and departmental heads in the firm while the secondary data was collected using document analysis. The data was analyzed using content analysis and presented in narratives and verbal quotations. The study found out that the external environment of New Kenya Co-operative Creameriesis highly unpredictable and competitive. The main innovative strategies adopted by New Co-operative Creameries were found out to be market innovative strategies, product innovative strategies and processinnovative strategies. The study further found out that these innovation strategies influenced how New Kenya Co-operative Creameries responded to the external environment and attaining competitive advantage. The study thus concludes that the current competitiveness and profitability at New Kenya Co-operative Creameries is largely accounted for by the available innovation strategies. The study also concludes that the innovative strategies adopted by New Kenya Co-operative Creameries play a crucial role in predicting and managing the external environmental factors by New Kenya Co-operative Creameries. The study therefore recommends that the management at New Kenya Co-Operative Creameries to undertake regular and frequent scanning of the external environment. This will enable them to identify and predict the trends both in the dairy industry and the remote environment. The study further recommends that New Kenya Co-operative Creameries should consider implementing additional innovation strategies in their operations. To enable generalization of the study findings, it is therefore suggested that further studies to be conducted on other companies. The study contributed to theory by confirming the validity of resource based theory, diffusion of innovations theory and contingency theory in guiding implementation of innovation strategies in response to changes in external environment. The study also contributed to bridging the gap on how implementation of innovation strategies is conducted and how it affects organization performance. The study also contributed to the strategic management practice by guiding the management of New Kenya Co-operative Creameries and organizations at large on implementation of innovation strategies to achieve best results.