Culture, Competitive Strategy, Innovations and Performance of the Airline Companies in Kenya

Abstract

The study investigated the relationship between organizational culture, competitive strategy, innovations and firm performance of Kenyan airline industry. The study objectives were to determine the culture profiles of the airline companies in Kenya, to establish the competitive strategies employed by the airline companies in Kenya, to analyze the state of innovation in the airline companies in Kenya, to analyze the performance of the airline companies in Kenya and to assess the effect of culture, innovation and competitive strategies on performance of the airline companies in Kenya. The study’s theoretical foundation was built on the culture theory, Porter’s theory of competitive advantage and disruptive innovation theory. The study adopted a causal design and collected data from all the airlines in Kenya. The data was collected using a questionnaire and analysed using SPSS version 25. The study found organizational culture initiatives such as prioritizing employee development, teamwork, and creativity play a critical role to the success of airlines. The study also found that Kenyan airlines adopt a balanced approach between cost-efficiency and quality service, emphasizing cost control, and creating value through service attributes while also striving for uniqueness and differentiation in the market. However, there is a need for greater diversification and niche targeting, along with addressing challenges related to market segmentation and niche identification within the airline industry in Kenya. The study also found that airline companies in Kenya have shown a proactive stance in innovating their businesses, and while they exhibit moderate market share and customer satisfaction levels, there are challenges related to employee satisfaction and opportunities for expansion, both domestically and international. The study concludes that airline companies in Kenya place a significant emphasis on employee development, recognizing its role in enhancing workforce engagement and overall organizational success. The study also concludes that airlines in Kenya have put a robust emphasis on cost control throughout the activity cost chain to enhance overall efficiency. The study recommends the airlines should continue to invest in employee growth and skills development to maintain a motivated and engaged workforce. The study also recommends the airlines to strengthen their competitive strategies. The study also recommends the airlines should prioritize employee satisfaction by implementing initiatives that boost morale and engagement.