The Effect of Innovation and Technology Management Practices on Business Survival in the Motor Vehicle Industry in Kenya

Abstract

The motor vehicle industry is a dynamic industry with customer needs that vary every time. This has forced organization to continuously embrace innovation and technology to satisfy the customer needs. The purpose of the research was to establish the effect of innovation and technology management practices on business survival in the motor industry. The research was limited to motor vehicle companies in Nairobi County. The research design adopted for the study was descriptive research and the target population was all the motor vehicle industries namely, assemblers, garages, importers and motor retailers in Nairobi County. Questionnaires were distributed to all the companies and the response rate was 73% thus adequate for the study. Data obtained was analyzed and deduction made about innovation and technology management practices in the motor industry and their effects on business survival. The findings show that the motor vehicle industry was established and is mature. The employees were also mature basing on the periods they had worked for the organizations. The most adopted innovation and technology management was strategic positioning relative to its competitors. This was also depicted to be the most effective practice for business survival. The least adopted and effective practice was established to be the use of commercialization of technology to earn royalties. This practice is not used in the motor vehicle industry in Kenya. The research also shows the effect of other innovation and technology management practices and their impact on business survival. From the research, it is concluded that various innovation and technology management practices adopted in the motor vehicle industry in Kenya had different effects on business survival. Those adopted to a high level had greater effects and thus promoted survival of businesses. The research further recommends adoption of more practices in the industries as well as a further research on commercialization of technology in Kenya