Strategic Innovation and Performance in the Fast-Moving Consumer Goods Industry in Kenya: A Case of Unilever Kenya
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Date
2023-10
Authors
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Journal ISSN
Volume Title
Publisher
Daystar University, School of Business & Economics
Abstract
Strategic innovation and organizational performance are two interconnected concepts that play a vital role in the achievements of companies within the competitive business landscape. Globalization and liberal markets around the world have led to an increased need for innovation to mainly reduce costs and generate more output at the lowest cost in many FMCG organizations. The purpose of this study was to investigate the effect of strategic innovation on organizational performance in the fast-moving consumer goods industry in Kenya with specific reference to Unilever Kenya. The objectives of the study were to determine the extent to which strategic innovation has been adopted by Unilever Kenya, to assess organizational performance metrics adopted by Unilever, and to establish the effect of strategic innovation on organizational performance at Unilever Kenya. Three theories were used to underpin the strategic innovation and organizational performance variables and indicate their correlation. The theories are the Technology Acceptance Model, Resource-Based View Theory, and Innovation Diffusion Theory respectively. The study was conducted through a descriptive research design. Descriptive statistics were used to summarize measures of central tendency such as mean and variations such as standard deviation. Correlation and regression analysis were used to determine how strategic innovations affect organizational performance. The target population consisted of 500 staff and a subset of 100 employees was chosen as the sample size. Cronbach's alpha was employed to evaluate the internal consistency and reliability of the questionnaire. The study established that strategic innovation had been implemented at Unilever Kenya. Moreover, further findings showed that market value, growth and expansion, and customer base were the measures of organizational performance implemented by Unilever Kenya. Pearson correlation findings indicated that strategic innovation had a positive significant correlation with organizational performance (r=0.363, p=0.001) meaning that implementation of strategic innovation has resulted in improved organizational performance. The study concluded that Unilever Kenya had adopted strategic innovations and established measures used to measure the organization’s performance and that strategic innovation had a positive effect on Unilever company’s performance. The study recommended Unilever Kenya should sustain its emphasis on innovation, invest in research and development efforts, continuously improve processes, and effectively manage risks associated with innovation.
Description
MASTER OF BUSINESS ADMINISTRATION
in Strategic Management
Keywords
Strategic Innovation, Consumer Goods Industry, Unilever Kenya
Citation
Kimani, P. K. W., (2023).Strategic Innovation and Performance in the Fast-Moving Consumer Goods Industry in Kenya: A Case of Unilever Kenya: Daystar University, School of Business & Economics