Strategic Innovation and Performance of Oil Marketing Firms in Nairobi City County, Kenya.
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Date
2020
Authors
Majimbo, Denard Otsula
Namusonge, Mary
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journals
Abstract
The number of oil marketing firms operating
in Nairobi City County have continued to
increase in number. This has affected their
performance as the oil marketing firms
compete with each other. The stiff
competition has made the oil marketing firms
to either exit the market or develop new
strategies such as strategic management to
enhance their performance. However it was
observed that there is limited empirical
studies on the relationship between strategic
innovation and performance of the oil
marketing firms in Nairobi City County.
Therefore the aim of this study was to
establish the effect of strategic innovation on
the performance of the oil marketing firms in
Nairobi City County. The first specific
objective was to establish the effect of
product innovation on the performance of the
oil marketing firms. The second specific
objective was to determine the effect of
market innovation on the performance of the
oil marketing firms. The third specific
objective was to investigate the effect of
process innovation on the performance of the
oil marketing firms. The fourth specific
objective was to determine the effect of
organizational innovation on the
performance of the oil marketing firms. The
study was based on knowledge based theory,
innovation based theory and resource based
theory. The study used a descriptive research
design. The target population was the 94
registered oil marketing firms in Nairobi City
County. The sample size was 35 oil
marketing firms in which the general
managers were the respondents. Closed
ended questionnaires were used to collect
primary data. Statistical Package for Social
Sciences version 23 by IBM was used to
analyse the data. Measures of mean and
standard deviation were used in descriptive
statistics and inferential statistics involved
correlation analysis and multiple regression
analysis to determine the relationship
between the different variables. The study
found a positive and significant relationship
between product innovation and performance
of the oil marketing firms in Nairobi City
County, a positive and significant
relationship between market innovation and
performance of the oil marketing firms in
Nairobi City County, a positive and
significant relation between process
innovation and performance of the oil
marketing firms and a positive and
significant relationship between
organizational innovation and performance
of the oil marketing firms in Nairobi City
County. Thus the study concluded that
strategic innovation has a strong and positive
influence on the performance of the oil
marketing firms in Nairobi City County. The
study recommends the oil marketing firms
should make continuous improvements to
their products and processes. The oil
marketing firms should set aside funds for
research and development. The oil marketing
firms should reward their employees when
they come up with new ideas. The
management should support employees
working in the teams dealing with different
project within the oil marketing firm.
Description
A research article published in International Academic Journal of Human Resource and Business Administration
Keywords
strategic innovation, performance, oil marketing firms, Nairobi City County, Kenya
Citation
Strategic innovation and performance of oil marketing firms in Nairobi City County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(9), 228-245