Effect of Technological Innovation on Performance of the Cement Manufacturing Firms in Kenya

Abstract

Technological innovation is a key factor in a firm’s competitiveness. It is unavoidable for firms which want to develop and maintain a competitive advantage and gain entry into new markets. The success of most firms majorly depends on efficient operational processes which result from more investments in technologies that enhance firm internal efficiencies. The objective of the study was to determine whether technological innovation affects the performance of the cement manufacturing firms in Kenya. The study was guided by diffusion of innovation theory. It adopted descriptive research design. The target population was all the department heads in all the nine cement manufacturing firms. The total number of departments in all the firms was 79. All the 79 respondents were included in the study since the target population was small. Primary data was collected through closed-ended questionnaires. Descriptive statistics, specifically frequencies, percentages and means were used. Further, inferential statistics; that included the correlation and regression analysis were also used to assess the relationship between the study variables. The findings revealed that technological innovation positively and significantly affect performance of the cement manufacturing firms in Kenya. The study concluded that technological innovations have a positive and significant effect on performance of the cement manufacturing companies in Kenya. The cement manufacturing firms in Kenya need to strengthen their technological related innovations. It is therefore necessary for the cement manufacturing firms in Kenya to strengthen their technological related innovations. They should adopt integrated manufacturing management information system in their functional operations; embrace inter-organizational processes and collaborations, implement innovative technology in the production processes and come up with deliberate strategy of training and developing staff on technical skills. The results further point out the need for the cement manufacturing firms to automate systems and routine tasks, and need to embark on producing and utilizing online reports in order to reduce costs.