Innovation and Operational Performance of Top 100 Rated Kpmg Firms in Kenya

Abstract

The main objective was to examine the influence of innovation and operational performance of Top 100 rated KPMG firms in Kenya. The objectives were to examine the influence of product innovations, process innovations, information processing and communication innovations on operational performance of Top100 rated KPMG firms in Kenya. The studyq was anchored on Diffusionq ofq innovationq Theoryq andq Resourceq Basedq View Theory (RBV). Theq studyq adoptedq descriptiveq researchq design and targetted the KPMG Top 100 rated firms in Kenya which are within Nairobi County. The unit of observation was the managers in the firms. The studyq collected primaryq data through use ofq aq questionnaire. The collected data was analyzed through descriptiveq andq inferentialq statistics. The analyzed dataqwas presentedq in tables,q and bar charts. The study found out that majority of the respondents indicated that ICT enhanced product innovations in their organizations to a great extent. It was established that the ICT based innovations led to introduction of new products and services in the Top 100 rated KPMG firms in Kenya. Majority of the respondents revealed that process innovations influenced operational performance of their organizations to a great extent. It was also found out that informationq processing and communication innovations influenced operational performance of their organizations to a great extent. The study concludes that product innovations significantly influences operational performance of Top 100 rated KPMG firms in Kenya. Theq studyq concludesq thatq process innovations have a positiveq andq statisticallyq significantq relationshipq withq operationalq performanceq ofq Top 100 rated KPMG firms. The study also concludes that information processing and communication innovations significantly influence operational performance of Top 100 rated KPMG firms. The study recommends that there is need to increase access to useful ICT to the small and medium sized companies which are the basically forms the Top 100 rated KPMG firms in Kenya. ICT play a key role in enhancing innovations in these firms which helps in adding value, quality and enhanced efficiency which subsequently improves performance of the medium sized firms. The government should create policies that support innovations in small and medium sized companies in Kenya and also help in development of technologies with local conditions and market demands.