INNOVATION STRATEGIES AND PERFORMANCE OF CONSTRUCTION FIRMS IN NAIROBI COUNTY, KENYA

Abstract

The construction sector, comparable to other medium enterprises, confronts a volatile economic landscape due to the constantly evolving business climate.  This study aimed to determine the impact of innovation strategies on the performance of construction enterprises in Nairobi County, Kenya.  The study was directed by the following specific objectives: to ascertain the impact of product innovation strategies on the performance of construction companies in Nairobi County, Kenya; and to ascertain the impact of technological innovation strategies on the performance of construction companies in Nairobi County, Kenya; The research was based on the Diffusion of Innovation Theory and Porter's Theory of Competitive Advantage.  The research employed a descriptive approach to assess the impact of innovation initiatives on the performance of construction firms in Nairobi County.  The target population comprises 113 construction enterprises in Nairobi, Kenya, with three business unit managers from each firm serving as responders.  The research employed convenience and purposive sampling methods to ascertain the sample size. Ten percent of the sample size will be allocated for the pilot study.  The research employed a structured questionnaire to gather primary data, while SPSS was utilized for data analysis. The study was constrained by information bias from the respondent.  Descriptive and inferential statistics will be employed to ascertain the correlations between the variables.  The correlation coefficient assessed the relationship between independent and dependent variables, while regression analysis evaluated the strength of this relationship.  Data was given as tables.  The results indicated statistical evidence that innovation techniques positively influenced the performance of construction enterprises in Nairobi County, Kenya.  The correlation study results indicated a strong positive relationship between innovation strategies and the organizational performance of construction enterprises in Nairobi County, Kenya.  The regression analysis results indicated that innovation methods had a favorable and significant influence on the performance of construction enterprises in Nairobi County, Kenya.

Key Words: Innovation Strategies, Product Innovation Strategies, Technological Innovation Strategies, Performance, Construction Companies, Nairobi County, Kenya