Influence of Strategic Innovation in Corporate Reputation Management in Microfinance Institutions in Machakos County.

Abstract

Strategic innovation can be defined as re-engineering or re-designing a firm's corporate strategy to promote growth, give value to customers and the company, and gain a competitive edge. The purpose of this study was to see how strategic innovation affected corporate reputation management in microfinance institutions(MFIs) in Machakos County. Specifically, the goals were to assess the effects of process and product innovation, and market innovation and resource innovation on corporate reputation management in Machakos County microfinance institutions. In order to achieve the study's purpose, the descriptive sampling technique has been used in a research study. Population target of the study comprised of all the Microfinance Institutions (MFI‘s) licensed by the Association of Microfinance Institutions of Kenya (AMFI-K) as at 31st December 2019. By AMFI-K, there are (15) fifteen licensed MFIs. The study included all of the selected MFIs, with the respondents being all of the branch managers. team leaders and operations officers. The total respondents therefore were forty-five (45). The main methodologies were questionnaires, which were self-administered by the researcher and yielded an 82.2 per cent response rate. The research showed that Product development and company image management had positive and important effects association. The study also indicated that process innovation and corporate reputation management had a favorable and substantial (P-Value=0.000) association. Furthermore, the findings demonstrated that market innovation and corporate reputation management had a favorable and substantial (P-Value=0.000) link. Finally, ―resource innovation and corporate reputation management had a favorable and substantial (PValue0.000) association. Based on the findings, the study came to the conclusion that Innovation in resources, markets, processes, and products are all interrelated. all have a positive and significant impact on company reputation management. The marketing officers of MFIs should improve their marketing innovation strategies and ensure that a product innovative approach is implemented, according to the findings of this study