Innovative Strategies And Performance Of Cement Manufacturing Firms In Athi River Zone

Abstract

The aim of this study was to assess the influence of innovative strategies on performance of large manufacturing firms in Kenya. The objective scope include influence of process innovation strategy, product innovation strategy, technology innovation strategy and service innovation strategy on organizational performance of cement manufacturing firms in Kenya. The objectives was used as they are involved with various forms of innovation. The study concentrated on the influence of innovation strategies on organization performance of manufacturing firms in Kenya. The theories that informed the study are organizational control theory, disruptive innovation theory, technology acceptance model, diffusion innovation theory and resource based view theory. The study adopted a descriptive survey research design where the unit of analysis was 5 cement manufacturing firms in Athi River Zone. Consequently, the unit of observation was the staff at the managerial position and these included senior managers, middle level managers and supervisors from each firm. The target population was all the 269 senior management, middle level management supervisors and staff in the 5 cement manufacturing firms in Athi River Zone. Yamane (1967) sample determination formula was used to obtain 135 respondents. Test of hypothesis was done at 95% confidence interval. This study conducted correlation and regression to weigh the relationship between the independent and dependent variables. The regression of coefficients results show that technological innovation strategy and performance is positively and significantly related (β=0.197, p=0.001). The results further indicated that process innovation strategy and performance are positively and significantly related (β= 0.205, p=0.000). The results further indicated that product innovation strategy and performance are positively and significantly related (β= 0.183, p=0.002). Lastly, results showed that service innovation strategy and performance were positively and but insignificantly (β =0.031, p=0.585). The study sought to examine the influence of strategic innovations and performance of cement manufacturing firms in Athi River Zone. The study concluded that strategic innovations played a significant role on cement manufacturing firms. This is because there existed a positive and significant relationship between technological innovation strategy, process innovation strategy, product innovation strategy and service innovation strategy on cement manufacturing firms. The study recommends that the manufacturing firms should invest in innovative technology so as to survive intense competition currently experienced in the manufacturing sector.Finally, it is recommended that manufacturing firms should invest in automating routine tasks so as to improve efficiency in the production process. The study further recommends that the firms should adopt business process reengineering and embark on minimizing waste in the manufacturing process.