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Abstract:
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The business environment is constantly changing, therefore, there is a need for innovations to address various strategic goals. This study addresses the effect of strategic innovations on the creation of competitive advantage for manufacturing firms in Nairobi, Kenya. The objectives of this study were to identify the strategic innovations employed by manufacturing firms, assess competitive advantages of manufacturing firms, and determine the effect of strategic innovation on competitive advantage of manufacturing firms in Nairobi County. The theories that guided the study include organizational control theory, resource-based theory, diffusion of innovation theory, and Porter’s competitive advantage theory. The study used a descriptive research design to collect data. The study population comprised 314 manufacturing firms in Nairobi County. The study utilized stratified random sampling to arrive at a representative sample of 94 respondents. Questionnaires were employed to collect primary data, which was analyzed using Statistical Package for the Social Sciences (SPSS), version 26, and presented in form of frequencies, percentages, tables, and figures. The study revealed that 100% of the manufacturing firms under study adopted product innovation and organizational innovation, while 98.9% adopted business model innovation (BMI). Respondents agreed with a weighted mean of 3.713 on the level of competitive advantage of manufacturing firms. The findings indicated that product innovation had an effect on competitive advantage with a weighted mean of 3.855. BMI and organizational innovation affected competitive advantage of manufacturing firms in Nairobi with a weighted mean of 3.603 and 3.809 respectively. The study recommends that manufacturing firms in Nairobi County should embrace strategic innovation to gain competitive advantage. |