Collins Ochieng’ Ayodo, Dr. Jared Deya


This study sought to investigate the relationship between strategic innovations and performance of airlines in Kenya. The study was guided by the following specific objectives: to determine the influence of technological innovations on performance of airlines in Kenya, to ascertain the influence of service innovations on performance of airlines in Kenya. The population of the study was all the registered 59 local airline companies in the aviation industry in Kenya. The respondents of the study was composed of Top Management level, Middle/ Business Management level and Lower/Functional Management level of all the 59 airline firms registered in Kenya, by use stratified and purposive sampling. The study used a descriptive research design to measure the influence of strategic innovations on performance of airlines. The study used structured questionnaire to collect primary data and audited reports from the airline industry in Kenya for secondary data. The Statistical Package for Social Sciences version 23 used to analyze data. Inferential statistics was used to establish the relationships that existed between the variables. The correlation coefficient was used to measure the relationship between independent variables and dependent variable while the regression analysis was used to measure the strength between the independent and dependent variables. Data is presented in form of tables, graphs and charts. The study found strong positive correlation between strategic innovations (technological innovations and service innovations) with performance of airlines in Kenya. The correlation determination indicated that strategic innovations jointly accounted for 41% of the performance of airlines in Kenya. From the findings the study concludes that strategic innovations (technological innovations and service innovations) have significant positive correlation with performance of airlines in Kenya. The study recommends that there is need for the management of airlines in Kenya to adopt modern technologies in the airline industry.

Key Words: Strategic innovations, Technological innovations, Service innovations, Performance of airlines

Full Text:



Aziz, S. B., Abidin, Z. H. Z., & Kadir, M. (2018). Innovative method to avoid the reduction of silver ions to silver nanoparticles in silver ion conducting based polymer electrolytes. Physica Scripta, 90(3), 035808.

Campbell, J. (1995). Outsourcing in maintenance management: a valid alternative to selfprovision, Journal of Quality in Maintenance Engineering, 1(3), 18-24.

Carey, P., Subramaniam, N., & Ching, K. C. W. (2006). Internal audit outsourcing in Australia. Accounting and Finance. Griffith Experts, 46, 11-30.

Cascio, W. F., and Montealegre, R. (2016). How technology is changing work and organizations. Annu. Rev. Organ. Psychol. Organ. Behav. 3, 349–375. doi: 10.1146/annurev-orgpsych-041015-062352

Chebo, A. K., and Y. F. Wubatie. 2020. “Commercialisation of Technology Through Technology Entrepreneurship: The Role of Strategic Flexibility and Strategic Alliance.” Technology Analysis & Strategic Management 33 (4): 1–12. doi:10.1080/09537325.2020.1817367.

Chen, S. & Pao, Ch. (2018). Marketing Innovation. ACM, 2017. (pp. 12–17). Taiwan.

Farah, H. A., Munga, J. & Mbebe, J. (2018). Influence of competitive strategies on performance of commercial airlines in Kenya: A survey of the airline industry in Kenya, International Academic Journal of Human Resource and Business Administration, 3(1), 170-189.

Feng, Changli & Ma, Ruize & Jiang, Lin. (2020). The impact of service innovation on firm performance: a meta-analysis. Journal of Service Management. ahead-of-print. 10.1108/JOSM-03-2019-0089.

Ghobakhloo, M. (2018). The future of manufacturing industry: a strategic roadmap toward industry 4.0. J. Manuf. Tech. Manage. 29, 910–936. doi: 10.1108/JMTM-02-2018-0057

Gikonyo, G. P. (2018). Organisational Resources And Sustainable Competitive Advantage Amongst Selected Firms In The Aviation Industry In Kenya (Doctoral dissertation, Thesis, Kenyatta University).

Gilbertson, D. (2020). US airlines must continue flying if they accept coronavirus relief. USA Today. [Online]. 31 March. [Accessed 5th May 2020]. Available from:

Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2018). Effects of innovation types on firm performance. International Journal of production economics, 133(2), 662-676.

Hayes, A (2020), Transport Sector. Investopedia. [online] (Accessed 25th March 2023) Available from: tation_sector.asp#:~:text=The%20transportatio n%20sector%20is%20an,those%20that%20pro vide%20transportation%20infrastructure (Accessed 25th August, 2020)

Jaworski, B.J. & Kohli, A.K.(2020). Market Orientation: Antecedents and Consequences. Dev. Mark. Orientat. 57, 53–70.

Medrano, N.; Cornejo-Cañamares, M.; Olarte-Pascual, C.(2020). The Impact of Marketing Innovation on Companies’ Environmental Orientation. J. Bus. Ind. Mark, 35, 1–12

Okundi, S., & Muchemi, A. (2022). Marketing Innovation Strategy and Entrepreneurial Performance of Small and Medium Enterprises in Nakuru East Town Sub-County. International Journal of Business Management, Entrepreneurship and Innovation, 4(2), 35-47.

Oqubay, A. 2018. The Structure and Performance of the Ethiopian Manufacturing Sector. Working Paper Series N° 299. Abidjan, Côte d’Ivoire: African Development Bank.

Peng, J.; Qin, Q.; Tang, T.(2021). The Influence of Marketing Innovations on Firm Performance under Different Market Environments: Evidence from China. Sustainability, 13, 10049. https://

Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.

Quaye, D.&Mensah, I.(2019). Marketing Innovation and Sustainable Competitive Advantage of Manufacturing SMEs in Ghana. Manag. Decis. 57, 1535–1553.

Sehl, K (2020). How the Airline Industry Survived SARS, 9/11, the Global Recession and More [online] (Accessed 10th April 2023). Available from:

Seo, G. H. (2020). Competitive Advantages of International Airline Alliances: A Critical Review. HOLISTICA–Journal of Business and Public Administration, 11(1), 139- 145.

Suroso, E., & Azis, Y. (2019). Defining Mainstreams Of Innovation: A.

Tang, T.; Zhang, S.; Peng, J.(2021). The Value of Marketing Innovation: Market-Driven versus Market-Driving. J. Bus. Res., 126, 88–98

UNDP. (2018). “Understanding African Experiences in Formulating and Implementing Plans for Emergence: A Case Study of Growing Manufacturing Industry in Ethiopia.” Addis Ababa: UNDP.

Ungerman, O.; Dedkova, J.; Gurinova, K. (2018). The Impact of Marketing Innovation on the Competitiveness of Enterprises in the Context of Industry 4.0. J. Compet. 10, 132–148.

Valmohammadi, C.( 2018). Customer relationship management: Innovation and performance. International Journal of Innovation Science, 9(4), 374–395.

Wakeford, J. J., M. Gebreeyesus, T. Ginbo, K. Yimer, O. Manzambi, C. Okereke, B. Mairi, and M. Yacob. (2017). “Innovation for Green Industrialization: An Empirical Assessment of Innovation in Ethiopia’s Cement, Leather and Textile Sectors.” Journal of Cleaner Production 166 (1), 503–511. doi:10.1016/j.jclepro.2017.08.067.

Yu X, Nguyen B, Chen Y. (2018). Internet of things capability and alliance: Entrepreneurial orientation, market orientation and product and process innovation. Internet Research. 26(2), 402–434.


  • There are currently no refbacks.