Martin Muroria, Dr. Elizabeth Nambuswa



The purpose of this study was to establish the influence of innovation strategies on competitiveness among tier I Commercial Banks in Nairobi City County, Kenya. The specific objectives were to assess the influence of product innovation on competitive advantage among tier I Commercial Banks in Nairobi City County, Kenya; and to establish the influence of process innovation on competitive advantage among tier I Commercial Banks in Nairobi City County, Kenya. The research was based on Porter’s theory of competitive advantage.

Methodology: The study adopted a descriptive survey research design. The study focused on a sample population consisting of nine tier 1 commercial banks. The selection of tier 1 commercial banks is predicated upon their substantial capital basis, extensive client base, and sizable loan portfolio. The research sampled of 110 employees from the operations, marketing, and information and communication technology divisions of the aforementioned institutions, as indicated by the human resource records. A census methodology was used.

Findings: The study established that there was significant positive correlation between the strategic innovations and competitiveness among tier I Commercial Banks in Nairobi City County, Kenya. The study found strong positive correlation between innovation strategies with competitiveness of tier I Commercial Banks in Nairobi City County. From the findings the study concludes that innovation strategies (product innovations & process innovations) have significant positive correlation with competitiveness of tier I Commercial Banks in Nairobi City County, Kenya.

Recommendations: The study recommends that there is need for the management of tier I Commercial Banks in Nairobi City County, Kenya to adopt modern technologies in the banking industry.

Key words: product innovation, product innovation, innovation strategies, competitive advantage, tier 1 commercial banks

Full Text:



Adegboyega, I. A. (2017). Impact of product innovation on organizational performance (A Survey of Nestle Nigeria Plc), Journal of Marketing and Consumer Research, 37, 23-31.

Alshorman, M., Alzoughool, S. A. A., Khalaf, D., & Ahmed A. (2020). he Effect of Process Innovation on Business Performance and Role of Design Management: A Structural Equation Modelling International Journal of Psychosocial Rehabilitation 24(07

Central Bank of Kenya. (2019). Bank Supervision Annual report. Nairobi, Kenya: Government Press.

Christa, U., & Kristinae, V. (2021). The effect of product innovation on business performance during COVID 19 pandemic. Uncertain Supply Chain Management, 9(1), 151-158.

Christopher, Y. K., Jane, S., & Yussuf, K. (2021). Effect of Process Innovations on Performance of Small and Medium Manufacturing Enterprises in Nairobi County, Kenya. African Journal of Education, Science and Technology, 6(4), 88-101.

Darmawan, D., & Grenier, E. (2021). Competitive Advantage and Service Marketing Mix. Journal of Social Science Studies (JOS3), 1(2), 75-80.

EmamiLangroodi, F. (2021). Schumpeter’s Theory of Economic Development: a study of the creative destruction and entrepreneurship effects on the economic growth. Journal of Insurance and Financial Management, 4(3).

Forbes. (2022). The Role Of Innovating In Competitive Success And How To Do It. Retrieved at

Gareche, M., Hosseini, S. M., & Taheri, M. (2019). A comprehensive literature review in competitive advantages of businesses. International Journal of Advanced Studies in Humanities and Social Science, 8(3), 223-240.

Gilbert, R. J. (2022). Innovation matters: competition policy for the high-technology economy. MIT Press.

Hifza, A., & Aslan, A. (2020, June). The Model of Competitive Advantage Development in Private Islamic Education Institutions. In BASA 2019: Proceedings of the Third International Seminar on Recent Language, Literature, and Local Culture Studies, BASA, 20-21 September 2019, Surakarta, Central Java, Indonesia (p. 205). European Alliance for Innovation.

Juma, A. M., & Atheru, G. (2018). Financial risks analysis and performance of commercial banks in Kenya. Journal of Finance and Accounting, 2(2).

Kahupi, I., Hull, C. E., Okorie, O., &Millette, S. (2021). Building competitive advantage with sustainable products–A case study perspective of stakeholders. Journal of Cleaner Production, 289, 125699.

Kowo, S. A., Akinbola, A. O., & Akinrinola, O. O. (2018). The impact of process innovation on organisational performance. Acta Universitatis Danubius. Œconomica, 15(2).

Laban, O. M., & Deya, J. (2019). Strategic innovations and the performance of information communication technology firms in Nairobi Kenya. International Journal of Academic Research in Progressive Education and Development, 8(2), 1-24.

Lashitew, A. A., Bals, L., & van Tulder, R. (2020). Inclusive business at the base of the pyramid: The role of embeddedness for enabling social innovations. Journal of business ethics, 162(2), 421-448.

Mehmood, T., Alzoubi, H. M., & Ahmed, G. (2019). Schumpeterian entrepreneurship theory: Evolution and relevance. Academy of Entrepreneurship Journal, 25(4).

Mohammad, M. M. (2018). Innovation strategies and sustainable competitive advantage of information and communication technology firms in Mombasa County, Kenya (Doctoral dissertation, University of Nairobi).

Nakato, M., Ngigi, B., & Andemariam, K. (2021). Effect Of Product Innovation On Performance Of Printing Smes In Kampala Central District. European Journal of Business and Strategic Management, 6(2), 1-14.

Peter, M. N., Munga, J., Nzili, J. M. (2021). Effect of process innovation strategies on performance of tier one commercial banks in Kenya, International Academic Journal of Innovation, Leadership and Entrepreneurship, 2(2), 142-162.

Porter, M.E. (1980), Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press

Porter, M.E. (1985), Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press

Tarofder, A. K., Jawabri, A., Haque, A., Azam, S. F., & Sherief, S. R. (2019). Competitive advantages through it-enabled supply chain management (SCM) context. Polish Journal of Management Studies, 19(1), 464-474.

Tsai, M. H., Chang, J. H., Lin, Y. S., & Cheng, K. C. (2020). The Impact of Product innovation on Performance: The Influence of Uncertainty and Managerial Accounting Information Systems.

Waliuddin, A. N., & Umar, F. (2022, January). The Impact of Product Innovation on Marketing Performance. In 2nd International Conference of Strategic Issues on Economics, Business and, Education (ICoSIEBE 2021) (pp. 328-335). Atlantis Press.

Yin, R. (2017). Case study research and publication: desogn and methods. Sage publications.

YuSheng, K., & Ibrahim, M. (2019). Service innovation, service delivery and customer satisfaction and loyalty in the banking sector of Ghana. International Journal of Bank Marketing.


  • There are currently no refbacks.