Effect of Innovation Strategies on Competitive Advantage Among Savings and Credit Co-operative Societies in Mombasa County, Kenya

Abstract

The nature of the environment that SACCOs operate in is competitive, dynamic and uncertain hence SACCO’s are always trying to achieve competitive advantage by attaining some sort of competitive edge and in some cases this may mean survival or achieving market leadership status through various ways but the major one is through increase in their membership. A key ingredient for achieving this or staying ahead of competition is through innovation. To be innovative means doing things differently from competitors, having broad perspectives, being able to take risks and constantly embracing changing technology hence being flexible, SACCOs in Mombasa County are no exception as the increasing significance of innovation is paramount if they are to achieve competitive advantage .The overall objective of the study was to determine the effects of innovation strategies on competitive advantage among SACCOs in Mombasa County. This study was guided by various theoretical and literature reviews. This was a descriptive cross-sectional census survey research. The study used primary data which was collected using a semi-structured questionnaire. Descriptive statistics data analysis methods were employed to analyze the quantitative data obtained. The study found out that the need to improve cost saving initiatives and extend product range among the main factors influencing the adoption of innovation as a strategy for achieving competitive advantage. The findings revealed that the costs associated with innovation are too high and that product innovation is what is mostly used by SACCOs in Mombasa County. In light of the findings, the study recommends that the SACCOs should focus more on market research to have a strong basis to base their innovation. Information technology should also be well incorporated for the innovation to be sustainable.