| dc.description.abstract | To achieve growth and sustain performance
it is critical for any organization
to foster
and encourage creativity and innovative practices internally.
Innovation strategy gives a
clear direction and concentrates the effort of the whole organization on a common
innovation end.
An innovation strategy, then, becomes a source of competitive
advantage for firms that strive to achieve a high level of innovation.
Therefore the need
for innovation is obvious and crucial for commercial banks operating in a continuous
uncertain and competitive environment.
This research was determining the effects of
innovation strategies on performance of commercial banks.
The study was done in the
commercial banks operating in Kenya.
The study adopted descriptive research design for
it portrays an accurate profile of situations.
The study carried out a census.
The study
used a questionnaire to collect the required data because it is efficient, cheap
and easy to
be administered.
The collected data was well examined and checked for completeness
and comprehensibility,
then summarized, coded and tabulated. Descriptive statistics
such as means, standard deviation and frequency distribution were used to analyze the
data. The qualitative data was analyzed using content analysis and finding presented in
prose form.
The study revealed that
the
commercial banks in Kenya had employed
creating of value through pricing, availability of resources and capabilities, customer
satisfaction and retention and entry into new markets form of market
innovation
strategies. Banks also had employed environmental analysis and response to changes
and aggressive anti-competitors marketing campaigns form of market innovation
strategies.
The study found that adoption of innovation strategies influenced the profitability of
commercial banks in Kenya to a very great extent. The study concludes that innovation
strategies are indispensable to bank’s future growth and sustainability. Commercial
banks with serious innovation strategies, improved their profitability. The study
recommended that for all the commercial banks to earn more profit, they should
embrace the adoption of innovative strategies, strive to ensure product range extension,
product replacement, product improvement, product repositioning and new product
introduction to enable them to be more productive, to grow
faster, to invest more and
also
to earn more profit in the short run and also in the long run | en_US |
