INNOVATION STRATEGIES AND COMPETITIVENESS AMONG TIER 1 COMMERCIAL BANKS IN NAIROBI CITY COUNTY KENYA

Martin Muroria, Dr. Elizabeth Nambuswa

Abstract


Background: 

The purpose of this study was to establish the influence of innovation strategies on competitiveness among tier I Commercial Banks in Nairobi City County, Kenya. The specific objectives were to assess the influence of product innovation on competitive advantage among tier I Commercial Banks in Nairobi City County, Kenya; and to establish the influence of process innovation on competitive advantage among tier I Commercial Banks in Nairobi City County, Kenya. The research was based on Porter’s theory of competitive advantage.

Methodology: The study adopted a descriptive survey research design. The study focused on a sample population consisting of nine tier 1 commercial banks. The selection of tier 1 commercial banks is predicated upon their substantial capital basis, extensive client base, and sizable loan portfolio. The research sampled of 110 employees from the operations, marketing, and information and communication technology divisions of the aforementioned institutions, as indicated by the human resource records. A census methodology was used.

Findings: The study established that there was significant positive correlation between the strategic innovations and competitiveness among tier I Commercial Banks in Nairobi City County, Kenya. The study found strong positive correlation between innovation strategies with competitiveness of tier I Commercial Banks in Nairobi City County. From the findings the study concludes that innovation strategies (product innovations & process innovations) have significant positive correlation with competitiveness of tier I Commercial Banks in Nairobi City County, Kenya.

Recommendations: The study recommends that there is need for the management of tier I Commercial Banks in Nairobi City County, Kenya to adopt modern technologies in the banking industry.

Key words: product innovation, product innovation, innovation strategies, competitive advantage, tier 1 commercial banks


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