Influence of service strategic innovation on performance of small and medium enterprises in Nyandarua county, Kenya

Abstract

This study aimed to investigate how service strategy innovation affects small and medium sized businesses' (SMEs') organizational performance in Kenya's Nyandarua County. The following goals guided the research: Find out how the customer interface affects the performance of SMEs in Kenya's Nyandarua County.to ascertain how service delivery systems affect SMEs' performance in Nyandarua County, Kenya, and how technology affects SMEs in the same county. The study was founded on the Rogers Innovation Diffusion Theory, the Conventional Economic Efficiency Theory, the Consumer Behavior Model, and the Service Quality Model. The descriptive research design was used in this investigation. The managers and owners of SMEs in Nyandarua County, who made up the sampling frame, were the study's target group. Stratified random sampling was employed in this investigation.The Yamane formula was used to calculate a sample size of 227 respondents. This study collected primary data through the use of a self-administered, structured questionnaire with closed-ended questions. A pilot study of the questionnaire was done with 20 respondents from the various SMEs included in the study's final sample. According to the survey, the firm's personnel gave clients individualized attention. Correlation research showed a positive and significant linear association between customer interface and SMEs' performance (r=0.332, p<0.05). According to regression coefficients, a one-unit change in client interface in these organizations might boost performance by 44.3%. A positive and substantial linear association was found between service delivery systems and the performance of SMEs (r=0.322, p<0.05). While regression coefficients revealed that a unit modification in these organizations' service delivery systems may boost performance by 36.7%. The study's findings revealed that human service in firms had a higher influence on consumer satisfaction. Correlation research found a positive and substantial linear link between technology and SMEs' performance (r=0.258, p<0.05), with regression coefficients indicating that a unit change in technology can boost performance by 28.9%. The study reveals that business services were easily available to customers who felt welcomed in these establishments. Businesses prioritized delivering high-quality services because their Service supply Systems (SDS) enabled the effective supply of products or services to their clients. The study suggests that managers/owners of SMEs in Nyandarua County plan their client contacts in phases. They must also determine how their products and services will be delivered to clients. Lastly, they need to adopt and implement SST applications in their businesses. By documenting customer preferences, improving service options, and increasing customer-business contacts, this would improve their capacity to customize service experiences and lead to improved performance.