Innovation and Service Quality in Telecommunication Industry in Kenya

Abstract

The purpose of the study was to show the main innovations, the main drivers and the relationship between innovation and service quality in telecommunication industry. Telecommunication industry in Kenya is a very competitive industry. Many firms in this sector have to come up with new and improved ideas to better services and products. They employ innovations to help improve service quality as well as improve the overall organization performance. We will look at key innovations in the telecommunications industry. This will show the most adopted innovations by the different telecommunication companies. The study shows that there is no relationship between innovations and service quality in telecommunication. This was unexpected, we thought that innovations had significant contribution to service quality. The finding of the study revealed that financial service innovations are the main innovations adopted by the telecommunication industry. The financial services have revolutionized the financial sector, a model which was very successful in Kenya and currently being rolled out worldwide by other telecommunication service providers. The main drivers of innovations were Research & development and increased competition among others. Due to the competitive landscape the telecommunication companies opted to have innovative products to meet customers need and retain their customers.