Market innovation and competitive advantage of telecommunication companies in Kenya

Abstract

Purpose: To survive, organizations must have a competitive advantage in order to stay ahead of the competition. Market innovation has remained the driving force behind most market expansions and stability in the turbulent nature of global economies. This study sought to establish the influence of market innovation on the competitive advantage of telecommunication companies in Kenya. Design/Method/Approach: Using the philosophy of positivism, the study adopted an explanatory research design in testing the hypothesis. The main data collection instrument was a structured questionnaire using both physical conduct and online interactions to return 247 responses from mid and top level managers in a total of 26 active telecommunications companies in Kenya. The study used both descriptive and inferential statistics using SPSS computer application to analyze the data. Findings: From the study findings, it was established that innovative distribution channels significantly influenced the competitive advantage while advertising and promotions did not have a significant influence. This led to the conclusion that market innovation has a significant influence on the competitive advantage of telecommunication companies in Kenya. Practical implications: The study recommends that telecommunication companies need to form collaborations and partnerships for ease of establishing market distribution channels that have indicated to bring influence onto the competitive advantage of the companies. Other recommendations include a wider coverage of the East African market for the telecommunications sector. The study provides insights into new companies with interest in the region. Originality/Value: From the results marketing and promotions are not the only major contributing factor in the competitive advantage but the channels of distribution. Research limitations/Future research: The study faced limitations on having to visit the field during the COVID-19 pandemic period thus encountering the restrictions of entry into premises. All protocols were observed to overcome that obstacle. Some of the telecommunications companies were facing difficulties in operations and hence could not participate. Paper type: empirical.