Home / Current Issue / Paper 1707574
Product Development Strategies and Competitive Advantage of the Telecommunication Firms in Kenya
Subject area: Management and Commerce · Area of research: Product Development Strategies
Abstract
The various challenges have been from such other major concerns like decreased voice revenues, changing regulatory regimes, and the fast pace of technological advancement, all of which call for strategic responses in order to keep competitiveness in the telecommunications industry in Kenya. The study sought to look at product development strategies as a source of competitive advantage by telecommunications firms in Kenya with the moderating influence of ICT regulatory policy. Key respondents in the industry were purposively selected for the study. Data collection was done using structured questionnaires. The analysis was done in three steps that included descriptive statistics, bivariate analysis, and regression analysis. Findings indicate that product development strategies are a major competitive advantage for the telecommunications companies in Kenya. Furthermore, the regulatory ICT policy is among the main driving factors for that relationship. In a few cases, firms that developed products according to the regulations have benefited from better market positioning and more operational efficiency, which translate into their improved competitive advantage. This observation implies that taking regulatory compliance into account while devising innovation-led strategies will consolidate the market leadership of the telecommunications industry in this respect. The conclusion of the study is that product development must go hand in hand with ICT regulatory engagement for telecommunications firms in Kenya to compete. The above elaborates the strategic and compliance frameworks for the sector players and policy makers for innovation and sustainable development. This study focused exclusively on telecommunication firms, the future research should expand to include analysis of other related areas such as media and digital communications for better understanding of competitive advantage dynamics.
Keywords
Product Development, Competitive Advantage, Telecommunication Industry, ICT Regulatory Policy, Market Positioning, Innovation Strategies, Regulatory Compliance, Technological Advancements, Strategic Management, Kenya Telecom Sector.
References
[1] Agarwal, S., Krishna, M., & Dev, C. (2003). Market orientation and performance in service firms: Role of innovation. Journal of Services Marketing, 17(1), 68–82.
[2] Alaba, V. (2021). Growth Strategy and Performance of Oil and Gas Companies in Nigeria of the Creative. Commons Attribution License, 5, 461-470.
[3] Alchian, A., & Demsetz, H. (2017). Production, information costs, and economic organization. American Economic Review, 62, 777–779.
[4] Alkasim, S. B., Hilman, H., & bin Bohari, A. M. (2018). The mediating effect of competitive strategy on the relationship between market development, product development and performance of manufacturing-based SMEs in Nigeria. Journal of Business and Retail Management Research, 12(2).
[5] Amit, R., & Schoemaker, P. (1993). Strategic assets and organizational rent. Strategic Management Journal, 14(1), 33-46.
[6] Ardjouman, D., & Asma, B. (2015). Marketing Management Strategies Affecting Performance of Enterprises (SMEs) in Cote d'Ivoire. International Journal of Business and Social Science.
[7] Asamoah, E. S. (2021). The Effect of the Marketing Mix on Customer Purchase Decision in the Mobile Telecommunication Industry in Sub-Sahara Africa. Journal of Applied Business & Economics, 23(7).
[8] Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17 (1), 99-120.
[9] Çetinkaya, A. Ş., Niavand, A., & Rashid, M. (2019). Organizational change and competitive advantage: Business size matters. Business & Management Studies: An International Journal, 7(3), 40-67.
[10] Chacha, E. (2010). Resource Based View Strategy at Safaricom Limited. University of Nairobi School of Business.
[11] Chang, W., & Taylor, S. A. (2016). The effectiveness of customer participation in new product development: A meta-analysis. Journal of Marketing, 80(1), 47-64.
[12] De Waal, G. (2016). An Extended Conceptual Framework for Product-Market Innovation.
[13] InternationalJournalof Innovation Management(IJIM),20(5),1-26. https://doi.org/10.1142/S1363919616500148
[14] De Waal, G., Tiwari, R., & McMurray, A. (2018). Resource-constrained innovation: A viable strategy for firms in the Australian food processing industry. In Governance and Sustainability Conference, Melbourne, Australia.
[15] Diskaya, F., Emir, S., & Orhan, N. (2011). Measuring the technical efficiency of telecommunication sector within global crisis: comparison of G8 countries and Turkey. Procedia-Social and Behavioral Sciences, 24, 206-218.
[16] Ezeigweneme, C. A., Umoh, A. A., Ilojianya, V. I., & Adegbite, A. O. (2024). Review Of Telecommunication regulation and policy: comparative analysis USA and AFRICA. Computer Science & IT Research Journal, 5(1), 81-99.
[17] Flacher, D., & Jennequin, H. (2008). Is telecommunications regulation efficient? An international perspective. Telecommunications policy, 32(5), 364-377.
[18] Gatobu, D., & Maende, C. (2019). Drivers of strategic alliances growth in the Kenya telecommunication industry: A case of Safaricom Limited. International Academic Journal of Human Resource and Business Administration, 3(6), 71-92.
[19] Goyal, A. (2021). A Critical Analysis of Porter’s 5 Forces Model of Competitive Advantage. Journal of Emerging Technologies and Innovative Research. https://ssrn.com/abstract=3765758
[20] Grundy, T. (2006). Rethinking and reinventing Michael Porter's five forces model.
[21] Strategic change, 15(5), 213-229.
[22] Gyemang, M., & Emeagwali, O. (2020). The roles of dynamic capabilities, innovation, organizational agility, and knowledge management on competitive performance in the telecommunication industry. Management Science Letters, 10, 1533-1542. 10.5267/j.msl.2019.12.013
[23] Hossain, M. M., & Suchy, N. J. (2013). Influence of customer satisfaction on loyalty: A study on mobile telecommunication industry. Journal of social sciences, 9(2), 73-80.
[24] Hosseini, A. S., Soltani, S., & Mehdizadeh, M. (2018). Competitive advantage and its effects on new product development strategy (Case study: Toos Nirro technical firm). Journal of Open Innovation: Technology, Market, and Complexity, 4(2), 17.
[25] Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.
[26] Iheanachor, N., Umukoro, I. O., & David-West, O. (2021). The role of product development practices on new product performance: Evidence from Nigeria's financial services providers. Technological forecasting and social change, 164, 120470. https://doi.org/10.1016/j.techfore.2020.120470
[27] Ilhan, A., & Durmaz, Y. (2015). Growth Strategies in Businesses and A Theoretical Approach. International Journal of Business and Management, 10, 210-214.
[28] Ismail, A. I., Rose, R. C., Abdullah, H., & Uli, J. (2010). The relationship between organisational competitive advantage and performance moderated by the age and size of firms. Asian Academy of Management Journal, 15(2), 157-173.
[29] Kamau, A. (2015). Competitive strategies adopted to drive performance by firms in the telecommunicationsindustryinKenya. SemanticScholar. https://www.semanticscholar.org/paper/Competitive-strategies-adopted-to-drive-performance-Kamau/bfc892a0e8b3763341b8e4a72ea597d13104189b
[30] Khurram, A., Hassan, S., Khurram, S. (2020). Revisiting Porter Five Forces Model: Influence of Non-Governmental Organizations on Competitive Rivalry in Various Economic Sectors. Pakistan Social Sciences Review.
[31] Kiarie, D. (2020). Influence of competitive Strategies on performance of mobile telephone Service Providers in Kenya. International Journal of Economics, Business and Management Research.
[32] Kilaba, E. J. M., & Manasseh, E. C. (2020). Telecom Revolution in Africa, The journey thus far and the journey ahead. Africa and Middle East Journal,(1), 29-33.
[33] Kim, J., & Song, D. (2020). Corporate governance and market entry and diversification decisions. Journal of Management, 46(3), 550-573.
[34] Kim, J., Park, Y., & Lee, H. (2017). A study on the competitiveness of the telecommunications industry in South Korea using Porter's five forces model. International Journal of Information and Communication Technology Education, 13(2), 68-76.
[35] Kimani, S. (2019). The effects of customer-centric growth strategies on the competitiveness of telecommunications firms in Kenya. Journal of Business and Economics, 10(2), 143-157.
[36] Kothari, C. (2004). Research Methodology - Methods and Techniques. New Age International,
[37] http://www2.hcmuaf.edu.vn/data/quoctuan/Research%20Methodology%20-%20Methods%20and%20Techniques%202004.pdf
[38] Krishnaswami, O., & Satyaprasad, B. (2010). Business Research Methods. Himalaya Publishing House.
[39] Krugman, P. (1980). Scale economies, product differentiation, and the pattern of trade. The American Economic Review, 70(5), 950-959.
[40] Kshetri, N. (2008). The Rapidly Transforming Chinese High-Technology Industry and Market: Institutions, Ingredients, Mechanisms and Modus Operandi. Elsevier.
[41] Lee, H., Kim, M., & Park, Y. (2012). An analytic network process approach to operationalization of five forces model. Applied Mathematical Modelling, 36(4): 1783- 1795. http://dx.doi.org/10.1016/j.apm.2011.09.012
[42] Mahardika, I. P. D., & WayanSantika, I. (2021). Strategies for Creating Competitive Advantage Through Product Development, Design and Quality (Case Study on the ZARA Brand in Badung Regency). American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), 279-282.
[43] Matin, S., & Kibria, A. M. B. G. (2014). Effects of Customer Satisfaction on Business: A Study on UK Telecommunication Industry. Journal of Business and Management, 16(6), 37-48.
[44] Mbithi, B., Muturi, W., & Rambo, C. (2015). Effect of market development strategy on performance in sugar industry in Kenya. International journal of academic research in business and social sciences, 5(12), 311-325.
[45] Mittal, S. K., & Momaya, K. (2009). Technological competitiveness of telecommunication industry in India: Glimpse of reality, opportunities and challenges. Global J. Bus. Excellence, 2(1), 22-33.
[46] Moen, Ø. (1999). The relationship between firm size, competitive advantages and export performance revisited. International Small Business Journal, 18(1), 53-72.
[47] Moshi, G. C., Mwakatumbula, H., & Mitomo, H. (2013). Regulation, Competition and Productivity Growth in the African Telecommunications Industry. International Journal of Managing Public Sector Information and Communication Technologies, 4(4), 17.
[48] Duary, S., Choudhury, P., Mishra, S., Sharma, V., Rao, D. D., & Aderemi, A. P. (2024, February). Cybersecurity threats detection in intelligent networks using predictive analytics approaches. In 2024 4th International Conference on Innovative Practices in Technology and Management (ICIPTM) (pp. 1-5). IEEE.
[49] Mugo, P. (2020). Porter’s five forces influence on competitive advantage in telecommunication industry in Kenya. European Journal of Business and Strategic Management, 5(2), 30 – 49. https://doi.org/10.47604/ejbsm.1140
[50] Ali, S. K., Makeen, H. A., Khuwaja, G., Alhazmi, H. A., Sharma, M., Koty, A., ... & Alam,
[51] M. F. (2023). Assessment of the phytochemical profile, antioxidant capacity, and hepatoprotective effect of Andrographis paniculata against CCl4-induced liver dysfunction in Wistar Albino rats. Medicina, 59(7), 1260.
[52] Bairwa, A. K., Yadav, R., Rao, D. D., Naidu, K., HC, Y., & Sharma, S. (2024). Implications of Cyber-Physical Adversarial Attacks on Autonomous Systems. Int. J. Exp. Res. Rev, 46, 273-284.
[53] Mugo, P., & Macharia, J. (2020). Technological innovation and competitive advantage in telecommunication companies in Kenya. International Journal of Research in Business and Social Science.
[54] Mutua, M., & Kori, B. (2022). Growth Strategies and Performance of Commercial Banks in Nairobi County, Kenya. Journal of Strategic Management, 6, 22-34. https://doi.org/10.53819/81018102t2102
[55] Mutua, N.M. (2014, January 13). Growth Strategies and the Competitive Advantage of Commercial banks in Kenya. http://erepository.uonbi.ac.ke/handle/11295/63421
[56] Narayanan, V.K., & Fahey, L. (2005). The Relevance of the Institutional Underpinnings of Porter's Five Forces Framework to Emerging Economies: An Epistemological Analysis. Journal of Management Studies, 42(1), 207-223. https://10.1111/j.1467-6486.2005.00494.x
[57] Njoroge, S. M., & Maina, S. M. (2021). Entrepreneurial Orientation and Organizational Performance of Airlines in Kenya. Entrepreneurial Orientation and Organizational Performance of Airlines in Kenya, 73(1), 13-13.
[58] Chandratreya, A., Dodde, S., Joshi, N., Rao, D. D., & Ramteke⁵, N. INTELLIGENT SYSTEMS AND APPLICATIONS IN ENGINEERING.
[59] Nkordeh, N., Bob-Manuel, I., & Olowononi, F. (2017, October). The Nigerian telecommunication industry: Analysis of the first fifteen years of the growths and challenges in the GSM market (2001–2016). In Proceedings of the World Congress on Engineering and Computer Science (Vol. 1, pp. 25-27).
[60] Nyakora, E. (2018). Strategy and competitive advantage of Safaricom Limited. University of Nairobi. http://erepository.uonbi.ac.ke/handle/11295/102444
[61] Ogbo, A. I., Okechukwu, I., & Ukpere, W. I. (2012). Managing innovations in telecommunications industry in Nigeria. African journal of business management, 6(25), 7469.
[62] Dubey, P., Dubey, P., Iwendi, C., Biamba, C. N., & Rao, D. D. (2025). Enhanced IoT- Based Face Mask Detection Framework Using Optimized Deep Learning Models: A Hybrid Approach with Adaptive Algorithms. IEEE Access.
[63] Oketch, C., & Muathe, S. (2022). What do strategic responses achieve? An analysis of performance of telecommunication firms in Kenya. International Journal of Research in Business and Social Science, 11, 104-118. https://10.20525/ijrbs.v11i2.1591
[64] Omweri, B. O. (2022). Foreign Market Expansion Strategy and Low Cost Carrier Airlines.
[65] A Case of Jambojet Limited (Doctoral dissertation, University of Nairobi).
[66] Oredegbe, A., & Zhang, Y. (2020). Telecommunications industry efficiency: A comparative analysis of high- and middle-income countries. Telecommunications Policy, 44(5), 101958.
[67] Osano, H. M. (2019). Global expansion of SMEs: role of global market strategy for Kenyan SMEs. Journal of Innovation and Entrepreneurship, 8(1), 13.
[68] Rao, D. D., Bala Dhandayuthapani, V., Subbalakshmi, C., Singh, M. P., Shukla, P. K., & Pandit, S. V. (2024). An efficient Analysis of the Fusion of Statistical-Centred Clustering and Machine Learning for WSN Energy Efficiency. Fusion: Practice & Applications, 15(2).
[69] Park, E. (2021). Intimacy and estrangement: Safaricom, divisibility, and the making of the corporate nation-state. Comparative Studies of South Asia, Africa and the Middle East, 41(3), 423-440.
[70] Patrisia, D., Linda, M., & Abror, A. (2022). Creation of competitive advantage in improving the business performance of banking companies. Jurnal Siasat Bisnis, 26, 121-137. https://10.20885/jsb.vol26.iss2.art1
[71] Shalit, S. S., & Sankar, U. (1977). The Measurement of Firm Size. The Review of Economics and Statistics, 59(3), 290–298. https://doi.org/10.2307/1925047
[72] Sharmelly, R., & Ray, P. (2021). Managing resource-constrained innovation in emerging markets: Perspectives from a business model. Technology in Society, 65, 101538. https://10.1016/j.techsoc.2021.101538
[73] Nehal, N. B., & Gupta, A. (2024). THE ROLE OF ENVIRONMENTAL EDUCATION IN FOSTERING CLIMATE CHANGE AWARENESS AND ACTION. Remittances Review, 9(2), 3254-3267.
[74] Stigler, G. J. (1958). The economies of scale. The Journal of Law and Economics, 1, 54- 71.
[75] Rao, D. D., Jain, A., Sharma, S., Pandit, S. V., & Pandey, R. (2024). Effectual energy optimization stratagems for wireless sensor network collections through fuzzy-based inadequate clustering. SN Computer Science, 5(8), 1-10.
[76] Sukaatmadja, P., Yasa, N., Rahyuda, H., Setini, M. & Dharmanegara, I. (2021).
[77] Competitive advantage to enhance internationalization and marketing performance woodcraft industry: A perspective of resource-based view theory. Journal of Project Management, 45-56. https://10.5267/j.jpm.2020.9.002
[78] Tawane, I. A., & Muathe, S. M. (2019). Strategy Implementation and Growth of Small and Medium Enterprises in Garissa County, Kenya. Eastern Africa Journal of Contemporary Research, 1(2), 79-88.
[79] van de Kaa, G., & Greeven, M. J. (2017). Mobile telecommunication standardization in Japan, China, the United States, and Europe: a comparison of regulatory and industrial regimes. Telecommunication Systems, 65, 181-192.
[80] Rao, D. D., Waoo, A. A., Singh, M. P., Pareek, P. K., Kamal, S., & Pandit, S. V. (2024).
[81] Strategizing IoT network layer security through advanced intrusion detection systems and AI-driven threat analysis. Full Length Article, 12(2), 195-195.
[82] Vassilakopoulou, A. M. (2013). The contribution of technology in business growth: the case of Greek ladies. Journal of Innovation and Entrepreneurship, 2(1), 1-8.
[83] Wan, Z., & Bullard, S. H. (2008). Firm size and competitive advantage in the US upholstered, wood household furniture industry. Forest Products Journal, 58(1), 91.
[84] Wang, C., Brabenec, T., Gao, P., & Tang, Z. (2021). The business strategy, competitive advantage and financial strategy: a perspective from corporate maturity mismatched investment. Journal of Competitiveness, 13(1), 164.v
[85] Wasiams, I., & Kwofie, B. (2022). The Effects of Liberalization on the Mobile Telephony Market in Africa: the Cases of Ghana, Nigeria and Kenya. In The African Mobile Story (pp. 17-40). River Publishers.
[86] Zeschky, M., Winterhalter, S., & Gassmann, O. (2014). From Cost to Frugal and Reverse Innovation: Mapping the Field and Implications for Global Competitiveness. Research Technology Management. https://10.5437/08956308X5704235
[87] Calandro, E., & Moyo, M. (2012). Investment models and regulatory constraints for broadband backbone roll‐out in selected African countries. info, 14(4), 21-35.
[88] Uyanto, S. S. (2020). Power comparisons of five most commonly used autocorrelation tests. Pakistan Journal of Statistics and Operation Research, 119-130.
[89] Chen, Y. (2016). Spatial autocorrelation approaches to testing residuals from least squares regression. PloS one, 11(1), e0146865.
[90] Jahanbakht, M., & Mostafa, R. (2020). Coevolution of policy and strategy in the development of the mobile telecommunications industry in Africa. Telecommunications Policy, 44(4), 101906.
How to cite this paper
@article{1707574,
author = {George Mwenda Gitonga, Dr. Paul Kariuki, PhD, Dr. Ezekiah Kimani, PhD},
title = {Product Development Strategies and Competitive Advantage of the Telecommunication Firms in Kenya},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {8},
number = {9},
pages = {960-980},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1707574.pdf},
abstract = {The various challenges have been from such other major concerns like decreased voice revenues, changing regulatory regimes, and the fast pace of technological advancement, all of which call for strategic responses in order to keep competitiveness in the telecommunications industry in Kenya. The study sought to look at product development strategies as a source of competitive advantage by telecommunications firms in Kenya with the moderating influence of ICT regulatory policy. Key respondents in the industry were purposively selected for the study. Data collection was done using structured questionnaires. The analysis was done in three steps that included descriptive statistics, bivariate analysis, and regression analysis. Findings indicate that product development strategies are a major competitive advantage for the telecommunications companies in Kenya. Furthermore, the regulatory ICT policy is among the main driving factors for that relationship. In a few cases, firms that developed products according to the regulations have benefited from better market positioning and more operational efficiency, which translate into their improved competitive advantage. This observation implies that taking regulatory compliance into account while devising innovation-led strategies will consolidate the market leadership of the telecommunications industry in this respect. The conclusion of the study is that product development must go hand in hand with ICT regulatory engagement for telecommunications firms in Kenya to compete. The above elaborates the strategic and compliance frameworks for the sector players and policy makers for innovation and sustainable development. This study focused exclusively on telecommunication firms, the future research should expand to include analysis of other related areas such as media and digital communications for better understanding of competitive advantage dynamics.},
keywords = {Product Development, Competitive Advantage, Telecommunication Industry, ICT Regulatory Policy, Market Positioning, Innovation Strategies, Regulatory Compliance, Technological Advancements, Strategic Management, Kenya Telecom Sector.},
month = {March},
}