Competitive Priorities and Growth of Tech Startups in Nairobi, Kenya

Abstract

This research focused on competitive priorities adopted by tech startups in Nairobi, Kenya, and how the competitive priorities adopted impacted the growth of tech startups. The research questions were: What is the competitive priorities adopted by tech startups in Nairobi, Kenya? What are the growth determinants of tech startups in Nairobi, Kenya? What is the effect of competitive priorities on the tech startup growth in Nairobi Kenya? Are the competitive priorities of tech startups in Nairobi similar to Silicon-valley startups? To achieve these objectives the study used a descriptive research design. Data were collected from 50 tech startups in Nairobi Kenya using questionnaires with the respondents mainly the founders, co-founders, owners, and software engineers. The results of the study indicated, that among the four main competitive priorities, quality was the most adopted followed by cost then flexibility, and lastly delivery speed. The results of the study also showed that the growth rate of tech startups in Nairobi is 22.7% as of 2020. The growth metrics were the number of employees, User Engagement, Customer Retention, and Number of downloads, Installations, or signups. The study concludes that Cost, delivery speed and flexibility competitive priorities influence the growth of tech startups in Nairobi. Silicon Valley startups, on the other hand, prioritize innovativeness and are quick to adapt to innovations and technology thus resulting in disruption and competitiveness globally. The study suggested that further research is necessary on the adoption of other competitive priorities such as innovation, customer retention, sustainability, customer service, and their influence on the growth of tech startups in Nairobi, Kenya.