Strategic Innovations and Performance of Kenya Power and Lighting Company Limited

Abstract

Changes in the business environment are characterized by high levels of competition. Changing customer’s behaviour, high firm operational costs and inadequate resources are some of the other challenges that face most firms. Firms have to change with the customers to retain the business relationship. Innovation is basically one of the critical measures to stay relevant and survive for companies. KPLC has embraced strategic innovations that assist the corporation have enhanced system management that protects income by decreasing the power theft, as well as ensuring quality supply through rapid supply restoration, load control, and cost reduction. This study was based on two theories, theory of resource based view and disruptive innovation theory. The objective of the research was to establish the effect of strategic innovations on performance of KPLC. The research adopted a case study approach and an interview guide was used for collection of data. Content analysis was used to analyze data which was qualitative in nature. The study established that KPLC has been able to obtain a better knowledge of the consumer by providing them with tailored goods or services that may directly meet their requirements in key areas via close customer connection. It was also established that system robotization, prepayment systems, automatic meter reading systems, advanced metering infrastructure and billing systems have an effect on the firms’ performance. The study concludes that innovations employed by KPLC specifically Smart Meter Technology and billing technology have been embraced by its target customers due to their efficiency and value addition. The study recommends that the management of KPLC should continue undertaking various strategy innovation since the strategies complement each other and their use enhances performance. The study also recommends that the management of KPLC should invest more resources in innovation as the costs do not adversely affect the firm competitiveness as they are usually incorporated in the final product.