Technological innovation and competitive advantage in telecommunication companies in Kenya

Previous studies have established that the telecommunications industry in Kenya is characterized by decreasing voice revenues, many regulations, technological progress and varying consumer needs. This phenomenon has resulted in industry companies developing sound innovation strategies to make sure they form a competitive advantage over their rivals with the aim of ensuring their survival and growth in the evermore cut-throat marketplace. Nevertheless, in spite of the essential part played by these innovation strategies to safeguard competitive advantage, several companies have failed to translate the plans into reality. Therefore, the major objective of this study was to investigate the influence of technological innovation on the competitive advantage of telecommunication companies in Kenya. Technological innovation was measured by expansion of Global System for Mobile Communications (GSM) networks; new equipment and software; and partnerships and synergies. To satisfy the objective of this paper, a positivist philosophical stance was adopted and research design using cross-sectional survey data used. Data was collected using proportionate sampling from 247 managers. The results indicate that technological innovation improves the competitive advantage of telecommunication companies in Kenya. However, with government regulation as a moderating variable, only the new equipment, and software constructs had a positive and significant influence on the dependent variable. Ultimately, the findings suggest that government regulation moderates the influence of technological innovation on the competitive advantage of telecommunication companies in Kenya.