Operations Innovation and Performance of Courier Firms in Kenya

Abstract

Operations innovation is considered as critical catalyst for the growth and profitability of organizations. It has a considerable impact on corporate performance by generating an improved market position that strengthens competitive advantage and spurs superior performance. Most private sector organizations operating in increasingly competitive markets require operations innovation in order to survive. The main objective of this study was to evaluate the relationship between operations innovation and performance of courier firms in Kenya. The study was guided by Theory of diffusion of innovations and the technology acceptance model (TAM). The research was descriptive in nature and was conducted through a survey. The target population for the study comprised of 69 courier firms in Nairobi County. The study relied on primary data. The primary data was collected using a semi- structured questionnaire. The data collected was quantitative in nature and statistical analysis was used to analyze the data.The data was analyzed using descriptive statistics such as frequency tables, percentages, and mean and standard deviation in order to achieve the set objective. Correlation and linear regression was also used.The study found that the application of technological innovation strategies affected the performance of courier firms in Kenya. In addition, the study established that courier firms in Kenya have engaged more on improved innovation process, reduction of costs, and new products introduction. The study established that availability of resources and capabilities, environmental analysis and response to changes and that creating value through pricing affects performance and that market innovation strategies helps in market segmentation and that market innovation strategies offers the best service to the markets. The study found that product innovation affects the performance of the courier firms to a great extent. On process innovation strategies, the study found that autonomous process innovations were used to a moderate extent and new products introduction were also used. The study recommends that the courier firms should ensure that they adapt the new technology in order to cope with the fast changing technology. The study also recommends that the courier firms should also strive to ensure product range extension, product replacement, product improvement, product repositioning and new product introduction to enable the courier firms to be more productive, to grow faster, to invest more and also to earn more profit.