Organizational Innovation, Technology, Strategic Planning and Competitiveness: Conceptual Perspective

Perpetua S. Wanaswa, Zachary B. Awino, Martin Ogutu


Organizations need to study their past operations and review the current status ofcompetitiveness so as to inform their future strategic planning process if they are to remaincompetitive. Changes in the business environment emanating from globalization,internationalization of firms and developments in information, communication andtechnology have called on firm to constantly rethink their strategies if they are to remaincompetitive in a given industry. Technology enable organizations to gather informationabout their competitors with the offering hence lead to better product development andhigher customer satisfaction. Through technology, firms are able to develop new and betterways of going about internal affairs hence operational efficiency. Technology offersorganizations a platform for them to leverage their operations for efficient operationscompared t their competitors. Organizations have to constantly come up with new ways ofdoing things by investing in research and development. The competitive advantage of anorganization is never constant because the competitors are always plotting to stay ahead ina given industry. Strategies developed for competitiveness are always concerned withmaking an organization unique and different from its peers in a given industry. Innovationenables firms to respond to changing customer preferences and tastes hence remainrelevant in their decision making process. This study was anchored on four theories:Innovation diffusion, Resource Based View, Technology acceptance Model and the fiveforces Theory. These theories are conceptualized in the context of strategic planningcovering strategy formulation, implementation to monitoring and evaluation. It alsopresented the technological advancements and how they have affected businesses’competitiveness through innovation. Innovativeness mediates the relationships betweenfirm performance and the formal strategic planning process and planning flexibility.

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