IMPACT OF MARKET INNOVATION STRATEGY ON PERFORMANCE OF DATA SERVICE PROVIDERS IN KENYA

Lazarus N. Nduati

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

Prof. Mike Iravo (Ph. D)

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

Dr. Kepha Ombui (Ph. D)

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

CITATION: Nduati, N, L., Iravo, M., & Ombui, K. (2019). Impact of Market Innovation Strategy on Performance of Data Service Providers in Kenya. International Journal of Strategic Management. Vol. 8 (2) pp 1 – 23.

ABSTRACT

In the wake of the 21^st century, data and technological based means of communication has been the order of the day in both developed and developing countries. Dater service providers stand to be critical in promoting technology based business World hence they are very crucial to the modern economy. However, their performance has always been minimal as evidenced by increased retrenchment and closure of operational doors of some emerging data service providers. On the other hand, market innovation stands to be critical in enhancing firm performance and competitiveness. Through establishment of new markets and new procedures to exploit the existing market, firms are able to enhance their market share and promote performance. However, very little has been done to link market innovation and performance of data services providers hence the purpose of this study. The study was informed by disruptive innovation theory. Descriptive research design was employed and the target population was 316 managers from data service provider companies in Kenya out of which simple random sampling was used to select 177 managers. Primary data was collected using questionnaires while secondary data was collected through reviews of both theoretical and empirical literatures. The collected data was analyzed using the statistical package for social sciences (SPSS) version 23.0. The software was used to produce frequencies, descriptive and inferential statistics which was used to derive generalizations and conclusions regarding the population. The study found that market innovation had a positive and significant influence on the performance of data service providers in Kenya and entrepreneurial orientation had a moderating effect on the relationship between market innovation and performance. The study concluded that as a result of market innovation, performance of data service provider companies in Kenya was deemed possible. The study recommended that managers in data service provider companies should embrace market innovation to steer their performance and competitiveness.

Key Words: Innovation Strategy, Market Innovation, Firm Performance, Data Service Providers.

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