Technological Objective Dimensions, Business Group Affiliation and Innovation Performance of Firms in a Developing Economy: Evidence from Kenya

Keywords: Innovation process, Economic Development, Business Groups

Abstract: Abstract: Using comparable data sets from the Kenya National Innovation Indicators Survey of 2015 and a Tobit regression analysis to test proposed hypotheses, we have advanced the conceptualization of technological innovation objective breadth and depth strategies, and examined influences of such strategies on the innovation process. Results provide evidence that managers could simultaneously adopt innovation objective breadth (IOB) and innovation objective depth (IOD) as distinct strategies to drive superior innovation performance. Further, we show that although business group (BG) affiliations moderate the impact of IOB and IOD on performance, the effect is contingent upon the nature of the technological (product or process) objectives implemented but not on the dimension (breadth or depth) of the strategy execution. Despite the orchestration mechanism of BGs’ resources and capabilities, the positive impact of affiliation on the link between Product (IOB and IOD) strategies and performance is not significant in the context of Kenya. Affiliations of BGs have a strong and significant weakening effect on the relationship between Process (IOB and IOD) strategies and technological performance, which may lead to a negative main effect of the Process IOD strategy. Theoretical and managerial implications are discussed in detail.