Strategic Innovations and Competitive Advantage of Tours and Travel Companies in Nairobi County

Abstract

The competitive advantage of any organization depends, largely, on implementation of its strategies. Research shows that the presence of innovation mechanisms in the organization has a positive influence on a number of key organizational factors such as productivity and strategic fit and competitive advantage. Strategic innovation enables organizational grow in their market as well as penetrate new market. By carrying out innovation, organizations can leverage on fast production processes in a less costly manner and, therefore, gain a competitive advantage in the market. The aim of this research was to determine the influence of strategic innovations on organizational performance among tours and travel companies in Nairobi City County. The study was based on disruptive innovation theory and Michael Porter’s theory of competitive advantage. A descriptive survey research design was used for the research. The 84 tours and travel companies in Nairobi City County made the population of the study. The study was a census of all the companies as the population was relatively small. Primary data was obtained using a questionnaire. The questionnaires were issued to the key managers who were mostly the heads of the firms. The data analysis involved both descriptive, correlation and regression analysis. Findings from the study showed a positive strategic innovations effect on competitive advantage. The study also revealed that strategic innovations was among the key factors that could be used to explain competitive advantage as they explained 47.8% of the variation in competitive advantage. The study concludes that strategic innovations are significant determinants of competitive advantage among the tours and travel companies in Nairobi City County. The recommendation of the study is that there is need for policymakers to develop guidelines and policies that will help the firms in adopting effective strategic innovations. Leadership of the tours and travel companies in Nairobi City County should create a culture of innovativeness where employees are allowed to find new ways of doing things. Future studies should investigate the effect of strategic innovations on competitive advantage of firms in other contexts.