Influence of Innovation Strategies on Competitive Advantage Among Fintech Companies in Kenya

Abstract

In strategic management theory and practice, innovation is deemed one of the core settings for competitive advantage and for success, thus a firm’s strategy for innovation is a significant component of developing long term strategies. Financial technology businesses are constantly inventing and upgrading their product offerings.The study's overarching goal was to examine the impact of innovation strategies on competitive advantage in Kenya's financial technology.Porter's theory of competitive advantage was combined with the diffusion of innovations theory to arrive at this result.A descriptive research approach was employed to examine the impact of innovation strategies on competitive advantage.The 91 financial technology businesses in Kenya were the intended audience for this research.The financial technology businesses' employees provided the information.This research used descriptive and regression analysis as well as correlational and regression methods.Technology and management innovation have an enormous impact on innovation strategies, but many financial technology businesses have adopted product, market, and process innovation at a lower level. The study established a positive relationship between competitive advantage and innovation strategies. It was concluded that product innovation, technological innovation, market innovation, management innovation and process innovation were positively related to competitive advantage. The study recommends that financial technology companies should invest in research and development with a view to improving the quality and diversity of their products.