Strategic Technological Innovations Influencing Competitive Advantage Among Micro and Small Enterprises in Nairobi County, Kenya

Abstract

Purpose: The ability of businesses to integrate information technology in their operations has been found to be an integral driver to their success. Through information technology, firms can utilize technological innovations to strengthen the uniqueness of their products in the market thus enhancing their competitive advantage. However, with limited evidence in the local context especially among the micro and small enterprises which continue to face a continuous decline, it warrants the study to assess how strategic technological innovations have been embraced among the small and micro enterprises and the role the innovations have played in enhancing the competitive advantage of the enterprises. Specifically, the study will examine the influence of enterprise’s IT Capabilities on competitive advantage among Micro and Small Enterprises (MSEs); determine the influence of Technological resources on competitive advantage among Micro and Small Enterprises (MSEs); explore the influence of adopted new technologies on competitive advantage among Micro and Small Enterprises; and establish the influence of Technological Processes and Products (TPP) on competitive advantage among Micro and Small Enterprises (MSEs) in Nairobi County, Kenya. The objectives will be anchored on dynamic capabilities theory, Schumpeter theory of innovation, technology acceptance model and diffusion theory of innovation.

Methodology: Using a descriptive research approach, the study will collect and analyse both qualitative and quantitative data. This data was obtained from 386 micro and medium enterprises in Nairobi Central Business District, drawn from a population of 11,245 MSEs registered by the Nairobi City County in the CBD. A questionnaire was the main instrument of data collection, which was pilot-tested for validity and reliability. The collected data was analyzed using descriptive and inferential statistics.

Findings: The findings were presented using frequency tables and graphs. In conclusion, the findings emphasize the critical role of technology in driving market expansion, customer engagement, and operational efficiency. The study highlights the importance of strategic support and intervention to address technological adoption challenges. By encouraging technological development and integration, policymakers and other stakeholders can assist MSEs in improving their operations, boosting the economy of Nairobi County. Investing in technological education and infrastructure is essential for MSEs to optimally benefit from TPP in the contemporary digital economy.

Unique Contribution to theory, policy and practice: Training and development on how MSEs can use the platforms effectively, online marketing and selling needs to be promoted to help MSEs build their capacities. Therefore, when equipped with the appropriate knowledge and tools, the policymakers can help the MSEs to adopt e-commerce and increase their market access and productivity.