Innovation Strategies and Customer Satisfaction in Public Services: A Case of Huduma Centers in Nairobi County

Abstract

Customer satisfaction is key for service provider in all the economy. Citizen Service Centres (CSC) constitute a powerful tool for governments to better serve their citizens and increase satisfaction with and trust in public service delivery. The purpose of this study was to establish the effect of innovation strategies on customer satisfaction in public services. The study focused on Huduma Centers in Kenya. The study objectives were to establish the existence of innovation strategies at Huduma Centre; to investigate how customer satisfaction was measured at Huduma Centres and to assess the effect of innovation strategies on customer satisfaction at Huduma Centres. The study was anchored on Innovation Diffusion Theory. Other informing theories were The Chocolate Model of Change and Technology Acceptance Theory (TAM) and carried out at five Huduma Centers in Nairobi County serving the highest number of citizens in the country. In pursuit of accomplishing the research objectives, the research adopted a descriptive design. The study population was the five Huduma centres in Nairobi with a population of 654 workers. The sample size consisted of 199 staff and 384 citizens. The data collection tool used for the study was a questionnaire. The sampling was done by use of simple random sampling. The data was analysed using both descriptive and inferential analysis. The inferential analysis involved both correlation and regression analysis. The pretesting was done in Thika Town Huduma Centre where 19 questionnaires were administered. The reliability test had statements of an average Cronbach alpha of 0.826 making the measuring tool very reliable. The KMO value of above 0.5 and a Barlette’s test of Sphericity of 0.05 showed significant correlations between the variables. The response rate for the staff members was 81% and 59% for the customers. The findings arising from this study revealed moderate to substantial adoption of innovation strategies, notably in process and administrative domains, emphasizing an organizational commitment to innovation. The study established positive correlations between service, systems, process, and administrative innovations, as well as resource mobilization, with customer satisfaction. Regression analysis indicated significant impacts of strategies used on customer satisfaction. The introduction of a moderation model, integrating resource mobilization, enhances explanatory power, highlighting its role in strengthening the innovation strategies-customer satisfaction relationship. The study's recommendations encompassed leveraging moderately embraced innovation strategies, fostering cross-functional collaboration for enhanced service and system innovation, implementing ongoing staff training, and conducting regular assessments to ensure alignment with evolving objectives. Upholding service quality, encouraging staff to seek and value customer feedback, and addressing service delivery promptness are essential. The study also recommended capitalizing on innovation strategies' influential role in enhancing customer satisfaction through continued investment, technological integration, process refinement, and resource mobilization to amplify their positive impact on customer experiences.