Innovation Strategies Adopted by Equity Bank Limited to Gain Competitive Advantage in Kenya

Abstract

The purpose of this study was to evaluate innovation strategies adopted by Equity Bank to gain competitive advantage in Kenya. This study considered Equity Bank because of its continued growth in the financial sector due to rigorous strategies that have been adopted thus providing a basis to examine innovation strategies largely adopted by banks to gain competitiveness. Innovation strategies enhances delivery of product package while also providing an opportunity for clients to choose from which entities satisfy their needs. Thus, to improve competitive advantage, financial entities must adopt different innovation strategies including design thinking, customer empathy, leading the market and establishing the next strategy curve idea. On the other hand, competitive advantage addresses firms competitiveness, its goals and the requisite policies needed to execute the objectives. An organization may attain competitive advantage by tailoring unique and superior products to competitors. This can be achieved through innovation strategies. Additionally, this study was anchored on three main theories namely, resource based view, porters theory and diffusion of innovation theory. Porter identified that an organization should develop sound objectives, strategy and operations that would lead to sustained competitiveness. According to Porter a company would achieve competitive advantage on the premise of three main strategies including cost leadership, product differentiation and focus strategy. Similarly, resource based view emphasizes that organizations should have strategic resources which would be significant to achievement of competitive advantage. It examines the main sources and drivers to organizations competitiveness and excellent performance that are directly linked with resources and capabilities that are variable and cannot be imitated easily. While, diffusion of innovation theory explains that the success of diffusion of innovation thus depends on the type of innovation strategies adopted by the firm, the manner in which they are communicated to stakeholders, execution rate and company culture or system. Concerning research methodology, the study adopted case study research design and the scholar targeted six top management as participants. Data was collected using interview guide and analyzed using content analysis. The study established that technology innovation is positively correlated to competitive advantage. Results revealed that Equity Bank thrives on technology that facilitate new innovations such as introduction of ATMs, Mobile banking, Internet banking, application of ICT within work structures and SME financing amongst others. Additionally, research revealed that product and market innovations are positively correlated to competitive advantage. It was clear that Equity Bank leverages new product and market innovations to service customers in a bid to outdo competitors as depicted in the findings. Researcher therefore recommends Equity bank to increase investment on research and development to improve innovations by taking advantage of efficient technology to facilitate production of quality products and services. Market innovations should be designed to enhance customer base and sales.