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RELATIONSHIP BETWEEN MARKET SENSING PRACTICES AND PERFORMANCE OF FINTECH COMPANIES IN KENYA
A majority of market sensing capabilities studies have either been carried out in different contexts or the conceptualizations were different. The current study was focused on establishing the relationship between market sensing practices and performance of fintech companies in Kenya. The main underlying theories in the study were the technology acceptance model and the dynamic capabilities. A cross-sectional survey together with a census approach were the choice design. The study focused on the 38 registered Fintech firms. Primary data was collected using structured questionnaire from senior managers. Simple regression technique was used to evaluate the relationship between the independent variables, Learning Orientation, Organizational System, Market Information and Organizational communication and firm performance as the dependent variable. The results include analyses of the model summary, ANOVA and regression coefficients. The findings indicated that 62% of the variation in firm performance was explained by learning orientation, organizational system, market information, and organizational communication which is a significant outcome in spite of the observation that learning orientation and organizational system are inversely related to firm performance. However, it was found that the overall effect of market sensing capability on firm performance was positive and statistically significant. This means that Fintech companies in Kenya are likely to realize increased performance if they develop and apply market sensing capabilities as a market facing strategy. The study concluded that market sensing influences firm performance in the Fintech industry in Kenya. As such, firms that have robust market sensing practices are likely to register better outcomes.
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