Competitive Intelligence Practices and Performance of Airlines in Kenya:Case of Air Kenya Express Limited

Abstract

The airline industry in Kenya has been described by industrious operational wastefulness and poor financial performance. These shortcomings have been linked to poor adaption of competitive intelligence strategies by the airline companies. The aim of this study was to investigate the influence of competitive intelligence practices on the performance of Airlines in Kenya. Specifically, the study sought; to establish the connection between product intelligence practices and performance of Air Kenya Express Ltd; to explore whether markets intelligence practices affect the performance of Air Kenya Express Ltd; to survey whether technology intelligence practices influence performance of Air Kenya Express Ltd; and to establish the impact of strategic alliance intelligence practices on performance of Air Kenya Express Ltd. The study employed a descriptive research design. The study target population was 150 employees of Air Kenya Express Limited head office in Nairobi. A sample of 25% was selected from within each group in proportions using stratified random sampling method to select 38 respondents. Questionnaires which contained both open and close-ended questions were used. Descriptive analysis was used to analyze the data collected, which included both qualitative and quantitative data. For further analysis of responses, tables and figures were used. Relationship between variables and their strength was shown using multiple regression analysis. The study findings revealed that the four independent variables explain 84.6% of the performance of Air Kenya Express Kenya Limited as shown by the R squared. The regression results revealed that market intelligence, product intelligence, technological intelligence and strategic alliance intelligence strategies has a positive and significant influence on performance of Airlines in Kenya. The findings of the study will enable Airline management to comprehend the significance of competitive intelligence and how extraordinary firms can accomplish competitive advantage. The study findings will also contribute greatly in the formulation of policies on competitive intelligence practices.

Keywords: competitive intelligence practices, performance, airlines