Innovation Strategies and Competitive Advantage Among Telecommunication Providers in Kenya

Abstract

In strategic management theory and practice, innovation is deemed one of the core settings for competitive advantage and for success, thus a firm’s strategy for innovation is a significant component of developing long term strategies. Telecommunication providers are innovating and changing their product offerings. The general objective of the study was to investigate the influence of innovation strategies on competitive advantage among telecommunication providers in Kenya. This study was based on two theories, Schumpeter`s theory of innovation and Porter`s theory of competitive advantage. The target population for this study comprised of the 38 tier 1 and 2 telecommunication network providers in Kenya. The data was collected from staff members of the telecommunication providers. Analyses was done using descriptive analysis, linear regression and correlation analyses. It was established that process innovation and administrative innovation influence innovation strategies to a great extent while many telecommunication network providers embraced market innovation and product innovation at moderate extent. The study established a positive relationship between competitive advantage and innovation strategies. It was concluded that product innovation, administrative innovation and market innovation were positively related to competitive advantage. The study recommends that telecommunication providers should invest in research and development with a view to improving the quality and diversity of their products.