BUSINESS INNOVATION, FIRM COMPETITIVENESS AND MARKET PERFORMANCE OF MOBILE OPERATORS IN KENYA: A CASE OF SAFARICOM PUBLIC LIMITED COMPANY

Abstract

The intense competitive environment in the mobile communications industry, has compelled mobile operators to regularly review their strategies to align with appropriate business innovation and firm competitiveness in order to compete favorably and to achieve the desired market performance. This study seeks to examine, investigate and determine the influence of business innovation and firm competitiveness on market performance of Safaricom PLC. The study was anchored on the Unified Theory of Acceptance and Use of Technology (UTAUT) theory, supported by Michael Porter Five Forces Model. The sample size of 197 was taken from a target population of 402 using stratified random sampling techniques. Descriptive research design was adopted, with the primary data collected using structured questionnaire and analyzed using SPSS version 26. Pilot study was done with 20 respondents, giving a Cronbach alpha of 0.866. Regression analysis established coefficients, X1=0.3400 (p=0.000) and X2=0.464 (p=0.000) for business innovation and firm competitiveness respectively, hence the regression model equation of: Y =0.447 + 0.340X3 + 0.464X4 showed that there was a positive significant correlation to market performance. The overall regression coefficient R= 0.750 and R² of 0.563. A comparative study is recommended be done with Airtel and Telkom Kenya to determine whether the outcome is in line with the findings from the Safaricom PLC study.