Market innovation and competitive advantage of telecommunication companies in Kenya

Abstract

Research question. 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. The research question for the study thus was, “do market innovations influence 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. The study findings established that innovative distribution channels significantly influenced the competitive advantage of telecommunication companies in Kenya, 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 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 an interest in the region. Originality/Value. From the results, marketing and promotions are not the only major contributing factors in the competitive advantage of telecommunication companies in Kenya; one must consider distribution channels too. Research limitations/Future Research. The study faced limitations on visiting the field during the COVID-19 pandemic period, thus encountering entry restrictions into various 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.