Strategic innovation and marketability of housing units by real estate firms in Nairobi county; a case of Sortmasters Limited

Abstract

Real estate business is an undertaking that has over the years been perceived by many as a capital intensive initiative. The main objectives of the study is to determine strategic innovations and marketability of real estate housing units in Nairobi County. The research selected real estate business in Industrial Area. The specific objectives of the study included three variables mainly; to determine marketing innovations strategy and marketing of real estate units in Nairobi County, to establish product diversification and marketability of real estate units in Nairobi County; and to determine product innovation and marketability of real estate’s units in Nairobi County, a case of Sortmasters Limited. The study was guided by Resource Based Theory and Schumpeter Theory of Innovation which informed the study of variables the main research design that was adopted in the research was descriptive research design. Target population for the study was 85 people that consisted of administrators, field officers, credit controller, sales and marketing and caretakers. The researcher obtained data through online delivery via the various media platforms such as WhatsApp, email and Facebook. Data was analyzed through SPSS software version 23. The background data was analyzed through the use of descriptive statistics specifically percentages, means and standard deviation. Result/findings of the study presentation addressed appropriate measures that disclosed strategic innovation and marketability for real estates housing in the future. The main beneficiaries of the study was management, government agencies and investors. The findings of the study revealed that strategic innovation influences the marketability of housing units by real estate firms having a P-values of all the three hypothesis as evidence on rejection of the null hypothesis or the acceptance of the alternative hypothesis. There is a positive effect of product diversification on performance which constitute of the existing new markets, technological advancement and information flow. Secondly, there is a significant and positive influence of market innovation strategy on marketability of housing units which is backed by need for the creation of value, improved customer intensity and competitors’ orientation. Finally, there is a significant and positive influence of product innovation and marketability of real estate housing units. Percentages, means and standard deviation was used for descriptive analysis of the indicators for each variable of the study. Multiple regression analysis was done to test for the hypotheses. The hypotheses testing at 0.95 significant level showed that marketing innovation strategy and marketability of housing units ( B0.646, p<0.001), on the other hand product diversification strategy has a significant and positive influence on the marketability of housing units (B=0.528,P<0.001) and finally, product innovation strategy has a significant and positive influence on marketability of housing units (B=0.618,P<0.001). Based on the findings, the researcher recommends that Sortmasters should effectively incorporate market innovation strategy, product diversification, and product innovation if they are to achieve sustainability in the long term. Notably, the government should incorporate certain policies that are aimed at boosting the operations by the real estate firms.