Evaluation of Process Innovation Strategy Influence on Performance of Equity Bank and Safaricom PLC in Kenya: A Comparative Analysis

Though a strong relationship is known to exist between innovation and performance, many companies are more inclined to falling back to generic strategies as a default strategy though ironically it is innovation strategies that both achieve a turn-around and register stellar performance. The purpose of this study was to conduct a comparative study of process innovation strategy’s influence on performance of Safaricom PLC and Equity Bank in Kenya. Such tools as descriptive and cross-sectional designs, likert and semantic differential scale was used with primary and secondary data collection instruments as well descriptive statistics and inferential statistics comprising of spearman rank correlation and multiple regression analysis were used and a fifty nine (59), which translates to 56% respond rate. Findings indicated a positive and insignificant effect between process innovation strategy and performance for both entities, with Equity Bank having a stronger correlation (β =0.1299, p < 0.05 and β =-0.003, p >0.05). Hence, one of the cardinal recommendation is the need for innovation to be entrenched in in all sectors of business, company and industry. Besides, companies must shift from use of generic strategies as default strategies and move to and be deliberate in the use of innovation strategies. Again, companies should detach innovation strategies from top management alone. Hence, companies should therefore create innovation-centric environments where it welcomes and harnesses all ideas and ideation from all staff including middle and junior staff.