Business Model Innovation Strategies and Performance of Manufacturing Firms Listed on Nairobi Securities Exchange in Kenya
| dc.contributor.author | Maina, James Rugami | |
| dc.date.accessioned | 2026-03-05T09:50:50Z | |
| dc.date.available | 2026-03-05T09:50:50Z | |
| dc.date.issued | 2025-11 | |
| dc.description | A Research Thesis Submitted to the School of Business Economics and Tourism in Partial Fulfilment of the Requirement for the Award of Doctor of Philosophy Degree in Business Administration (Strategic Management) Kenyatta University. November,2025 Supervisors Anne Muchemi Samuel Maina | |
| dc.description.abstract | Globally, manufacturing firms form a vital part of national economic infrastructure, contributing to employment, revenue generation and overall economic development. Despite their significance to the economy, most manufacturing firms in Kenya have recently experienced decline in performance, marked by low profit margins and stagnating market share due to increased competition from imports. This study investigated the effect of business model innovation strategies on performance of manufacturing firms listed on the Nairobi Securities Exchange in Kenya. Specifically, it examined the effects of customer value proposition innovation, distribution channel innovation, blue ocean strategy and strategic partnership innovation on firm performance. Additionally, the study explored the mediating role of competitive advantage and the moderating effect of the regulatory framework on the relationship between business model innovation strategies and performance of listed manufacturing firms. The study is anchored on Porter’s value chain model, resource-based view theory, dynamic capabilities theory, diffusion of innovation theory and the balanced scorecard model. A positivist research paradigm and an explanatory research design that was cross sectional in nature adopted. The target population consisted of 95 functional heads of departments drawn from 19 listed manufacturing firms. The data collection instrument was a semi-structured questionnaire with closed and open-ended questions. A pilot study was conducted to test the validity and reliability of the instrument, achieving above Cronbach alpha index of 0.7. The instrument was also subjected to face, construct, and content validity. The response rate was 88%. Quantitative data was analyzed using descriptive and inferential statistics. Descriptive analysis involved the use of mean and standard deviation. Results of data analysis are presented in tables and figures. Qualitative data was analyzed using content analysis. The study found that customer value proposition innovation, distribution channel innovation, blue ocean and strategic partnership innovation strategies significantly and positively affected firm performance. Competitive advantage was found to partially mediate the relationship between business model innovation strategies and firm performance. Furthermore, the regulatory framework significantly moderates the relationship between business model innovation strategies and firm performance highlighting the importance of a supportive regulatory environment in enhancing the effectiveness of innovation strategies. The study findings conclude that managers of the manufacturing firms should prioritize business model innovation strategies to improve performance. The study recommends that through strategic collaborations, managers can work with universities and other educational institutions to include business model innovation studies in their syllabus. The policymakers should foster a conducive regulatory framework to support innovative efforts and facilitate ease of doing business to encourage more investments in manufacturing. The study recommends that top management of manufacturing firms invest in enhancing customer value propositions, optimizing distribution channels, adopting blue ocean strategies, and forming strategic partnerships. More emphases and resources should be devoted to distribution channel innovation strategy to ensure availability of quality products when, where and how customers need them. Future research should explore the effect of other business model innovation strategies and consider the role of additional mediating and moderating factors in different contexts, for example the informal manufacturing sector. | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32653 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Business Model Innovation Strategies and Performance of Manufacturing Firms Listed on Nairobi Securities Exchange in Kenya | |
| dc.type | Thesis |