STRATEGIC INNOVATIONS AND PERFORMANCE OF AIRLINES IN KENYA

Collins Ochieng’ Ayodo, Dr. Jared Deya

Abstract


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


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References


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