Strategic Change Drivers and Competitiveness of Internet Service Providers in Nairobi City County, Kenya
DOI:
https://doi.org/10.53819/81018102t5447Abstract
The competitiveness of Internet Service Providers in Nairobi City County faces increasing pressure from rapid technological disruption, global satellite internet entry, shifting consumer behavior, and intensifying market rivalry. Despite the vital role of ISPs in bridging Kenya's digital divide and driving economic growth, the strategic change drivers underpinning ISP competitiveness remain insufficiently investigated empirically, particularly in the post-Starlink era characterized by unprecedented market disruption. This study examined the influence of internal structural alignment, customer-centric innovation, strategic partnerships, and consumer behavior change on the competitiveness of Internet Service Providers in Nairobi City County, Kenya. The study was anchored on systems theory, resource-based view theory, service-dominant logic theory, theory of planned behavior and porter's five forces framework. A descriptive research design was adopted, targeting 108 top management team members drawn from 12 Communications Authority of Kenya-regulated Internet Service Providers. A census method was employed to ensure all cases participated, and an exceptional response rate of 97% was achieved. Primary data were collected using structured five-point Likert scale questionnaires, while secondary data on Return on Assets were extracted from ISP condensed audited annual reports. Data was analyzed using IBM SPSS version 23, employing descriptive statistics, Pearson correlation analysis, and multiple linear regression analysis. Diagnostic tests for normality, linearity, homoscedasticity, and multicollinearity were conducted to validate regression assumptions. The study established that all four strategic change drivers positively and significantly influence ISP competitiveness in Nairobi City County, collectively explaining the vast majority of variance in competitiveness. Strategic partnerships emerged as the most influential predictor, followed by consumer behavior change, customer-centric innovation, and internal structural alignment respectively. The study recommends that ISPs should prioritize standardized partnership management frameworks, proactive demographic segmentation strategies, automated customer onboarding processes, and AI-powered predictive service delivery to sustain and deepen competitive advantage in Kenya's rapidly evolving telecommunications landscape.
Keywords: Strategic change drivers, competitiveness, internet service providers, Nairobi City County, Kenya
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