Influence of Innovation Practices on Performance of Mobile Service Providers: A Case of Nairobi City County, Kenya

Abstract

Innovation is considered a critical requirement for the growth and profitability of any organization. For private sector organizations operating in increasingly competitive market, innovation is often a condition for simple survival. The technological, economical and legal changes have pushed mobile service providers towards a new way of thinking where innovations are being used to provide competitive advantage. It is therefore expected that for these firms to thrive in the competitive environment they must have to focus their strength to innovation in order to respond and adapt to the changes and challenges in their operating environment. The purpose of this study was to analyse the influence of innovation practices on performance of mobile service providers in Nairobi City County, Kenya. The objectives of this study were; to determine the influence of financial resources mobilization innovation, and to identify the influence of human resource innovation on performance of mobile service providers in Nairobi City County Kenya. The study was anchored on the Diffusion of Innovation Theory and Resource-based approach theory while adopting a descriptive survey research design. The target population was from top, middle and lower-level managers of the three mobile service providers (Safaricom, Airtel and Telkom) with the stratified random sampling method used in identifying the sample respondents for data collection. The study mainly used primary data which was collected using self- administered questionnaires. Collected data was analyzed using the Statistical Package for Social Sciences Version 26 where inferential statistical methods were used to describe and depict the results (Correlation, Regression and ANOVA). The research instrument used was a structured questionnaire. Data was analyzed with the help of statistical package for social science version 26, Correlation and regression analysis tools were used establishing the relationship between the variables. The F-test (F=4.973) which was greater than the critical value. The F-test indicated an overall statistically significant model with financial resources mobilization innovation 78.1% (t~1.331) while human resource innovation explained 34.7% (t~1.349) of performance of mobile service providers in Nairobi City County, Kenya. The findings therefore revealed statistically significant regression influence among the variables. The study will be expected to add to existing literature in the information technology field as well as enriching the already existing literature in the information technology area and other fields in general. Keywords: Financial Resources Mobilization Innovation, Human Resource Innovation, Profitability.