Effect of Innovation Strategies on Performance of Real Estates Firms in Mavoko Sub-County, Kenya

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VI, June 2021 | ISSN 2454–6186

Effect of Innovation Strategies on Performance of Real Estates Firms in Mavoko Sub-County, Kenya

Wambua, Peter Maingi, and Stephen M. A. Muathe,
Kenyatta University, Kenya

Abstract
For the last 5 years, the real estate in Kenya has been affected negatively by financial crisis that affected the entire world. There has been also a massive expansion of the real estate that calls for innovation and new strategies by the stakeholders in the sector for them to keep abreast with the challenges. Therefore, this study sought to assess the effect of innovation strategies on real estate firms’ performance in Mavoko Sub-County, Kenya. Specifically, the study sought to; determine how Process Innovation Strategy, Product Differentiation Strategy, Technology Strategy, and Innovative Customer Service Strategy influences performance of real estate firms in Mavoko Sub-County, Kenya. This study used census method since the population was small and the firms were easily accessible. Primary data for this study was collected using copies of questionnaire as its key instrument. SPSS version 25 then aided in analyzing data as it was most apposite and user-friendly for analyzing attitudinal responses that are management related. Data collected was then analyzed through descriptive statistics and inferential statistics and presented using frequency distribution tables and figures. The findings revealed that 90.3% of the total variance in the dependent variable (Performance of Real Estate Firms) could be significantly explained by combined independent variables (Process Innovation Strategy, Product Differentiation Strategy, Technology Strategy, and Innovative Customer Service Strategy). The study therefore concluded that Process Innovation, Product Differentiation, Technology, and Innovative Customer Service Strategies had significant positive effect on the performances of real estate firms in Mavoko Sub-County, Kenya. Therefore, the study recommended that the firms should make use of these strategies so as to boost their performance.

Key Words: Firm Strategy, Innovation, Performance

1.0 Introduction

Firms develop strategies that enable them achieve their basic goal of maximizing the wealth of their shareholders. Innovative strategies are protracted exploit plans that are invented to aid a company to improve and devour a competitive advantage over its competitors by responding to numerous changes in its environment (Zott & Amit, 2008). According to Snow and Hambrick (2015) a firm’s performance, on the contrarily, is the outcome of accomplishments of an organization or investment for a certain duration. There is a connection between innovation and performance of a firm whereby having a competing advantage it is highly likely that the firm will have a worthy performance in the industry it operates in.
Juma (2019) observe that the last decade has seen massive growth of the realtor business in Kenya for the reason that the property market is reacting to demand that has been fashioned by the escalating middle class with disposable income and in which persons have become able to purchase homes and others service their mortgages. As a result, there have been many players into real estate firms to content this demand. Competition is hence no amazement; the firms have to improve their main competencies to deliver unique products at reasonable costs for their survival.

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