INFLUENCE OF TECHNOLOGY INNOVATION STRATEGY ON PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA
Abstract
The manufacturing sector in Kenya faces significant technology adoption challenges that hinder optimal performance and contribution to national economic development, with growth consistently lagging behind the broader economy. This study examined the influence of technology innovation strategy on performance of large manufacturing firms in Kenya, utilizing the Technology Acceptance Model theory as the theoretical foundation. A descriptive survey and correlational research design was employed, targeting 50 large manufacturing firms listed by the Kenya Association of Manufacturers, with a sample of 109 management level employees selected through stratified random sampling. Primary data was collected using structured questionnaires, achieving a 90% response rate with 98 usable responses. Data analysis employed descriptive statistics, Pearson correlation analysis, and simple linear regression using SPSS version 23. The findings revealed that technology innovation strategy has a significant positive influence on firm performance (β = 0.336, p < 0.05), with the model explaining 60.7% of the variance in organizational performance (R² = 0.607). The correlation analysis confirmed the strongest relationship among innovation strategies (r = .779, p = 0.007), indicating that manufacturing firms investing in new technologies for marketing, advertisement, and distribution achieve superior performance outcomes. The study concluded that technology innovation strategy involving implementation of advanced marketing technologies, advertisement systems, and automated distribution methods significantly enhances operational efficiency, customer engagement, and competitive positioning. The research recommends that management prioritize strategic technology investments, government develop supportive technology policies, and academic institutions incorporate technology innovation modules to enhance manufacturing sector competitiveness and support Kenya's economic development objectives.
Keywords: Technology innovation strategy, organizational performance, manufacturing firms, Kenya, digital transformation, competitive advantage.
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