case study on irish food retail company (tesco), Study Guides, Projects, Research of Innovation

Download case study on irish food retail company (tesco) and more Study Guides, Projects, Research Innovation in PDF only on Docsity! 1 THE INFLUENCE OF TECHNOLOGICAL INNOVATIONS ON ORGANIZATION’S COMPETITIVE ADVANTAGE: CASE STUDY ON IRISH FOOD RETAIL COMPANY (TESCO) BY: IBRAHIM NGASHANG ALEXANDER PROGRAM: MSc. INTERNATIONAL BUSINESS SUPERVISOR: DANIELLE MC CARTAN-QUINN STUDENT ID: X18204490 Submitted to the National College of Ireland August 2020 2 Submission of Thesis and Dissertation National College of Ireland Research Students Declaration Form (Thesis/Author Declaration Form) Name: IBRAHIM NGASHANG ALEXANDER Student Number: x18204490 Degree for which thesis is submitted: MSc INTERNATIONAL BUSINESS Title of Thesis: THE INFLUENCE OF TECHNOLOGICAL INNOVATIONS ON ORGANIZATION’S COMPETITIVE ADVANTAGE: CASE STUDY ON IRISH FOOD RETAIL COMPANY (TESCO) Date: 19/08/2020 Material submitted for award I declare that this work submitted has been composed by myself. YES I declare that all verbatim extracts contained in the thesis have been distinguished by quotation marks and the sources of information specifically acknowledged. YES I agree to my thesis being deposited in the NCI Library online open access repository NORMA. YES Either *I declare that no material contained in the thesis has been used in any other submission for an academic award. Or *I declare that the following material contained in the thesis formed part of a submission for the award of MSc INTERNATIONAL BUSINESS AWARDED BY QQI (State the award and the awarding body and list the material below) Signature of Research student …… … Date: 19/08/2020 5 LIST OF TABLES Table 4.1: Questionnaires distributions. .............................................................................................. 37 Table 4.2 Research question one: ...................................................................................................... 38 Table 4.3 Model Summary................................................................................................................. 39 Table 4.4 ANOVA(b) ......................................................................................................................... 39 Table 4.5 Coefficients(a) ................................................................................................................... 40 Table 4.6 Model Summary…………………………………………………………………………..40 Table 4.7 Research Question Two ..................................................................................................... 43 Table 4.8 Model Summary ................................................................................................................. 45 Table 4.9 ANOVA(b) ......................................................................................................................... 45 Table 4.10 Coefficients(a) ..................................................................................................................... 46 Table 4.11 Model Summary .................................................................................................................. 46 6 LIST OF ABBREVIATIONS ASTII African Science Technology and Innovation Indicators DPC Data Protection Commission ICT Information Communication Technology NEPAD New Partnership for Africa's Development PCA Principal Component Analysis R&D Research and Development SEO Search Engine Optimization 7 TABLE OF CONTENTS ABSTRACT ................................................................................................................................................. 3 ACKNOWLEDGEMENTS ....................................................................................................................... 4 LIST OF TABLES ...................................................................................................................................... 5 LIST OF ABBREVIATIONS .................................................................................................................... 6 CHAPTER ONE ......................................................................................................................................... 9 1 INTRODUCTION ............................................................................................................................... 9 1.1. Background to the Study .................................................................................................................... 9 1.2. Statement of the Problem ................................................................................................................. 12 1.3. Research objective ........................................................................................................................... 13 1.4. Research Question ........................................................................................................................... 13 1.5. Research Hypothesis ........................................................................................................................ 13 1.6. Rationale for Research Hypothesis .................................................................................................. 14 1.7. Significance of the Study ................................................................................................................. 15 1.8. Scope of the study ............................................................................................................................ 16 CHAPTER TWO ...................................................................................................................................... 17 2.0 LITERATURE REVIEW............................................................................................................. 17 2.1. Conceptual Framework .................................................................................................................... 17 2.1.1. Concept of Innovation/ Technological Innovation ................................................................... 17 2.1.2. Influence of Technological Innovation on Retail Industry ....................................................... 20 2.1.3. Role of Information Technology on Technological Innovation in the Retail Industry ............. 21 2.1.4. Sustainable Competitive Advantage ......................................................................................... 24 2.1.5. Technology improving the quality of marketing in Ireland ...................................................... 25 2.2. Theoretical Framework .................................................................................................................... 27 2.3. Empirical Framework ...................................................................................................................... 28 CHAPTER THREE .................................................................................................................................. 33 3 RESEARCH METHODOLOGY .................................................................................................... 33 3.1. Introduction ...................................................................................................................................... 33 3.2. Research design ............................................................................................................................... 33 3.3. Research philosophy ........................................................................................................................ 33 3.4. Research approach ........................................................................................................................... 34 3.5. Population of study .......................................................................................................................... 34 3.6. Sample technique ............................................................................................................................. 34 10 technologies and severe global competition has rapidly eroded the value added of existing products and services. In addition, innovation is an invaluable component of the corporate strategies for many reasons such as to apply more productive manufacturing processes, to enhance the organization’s performance in the market, to seek positive reputation in customers’ perception and as a result to gain sustainable competitive advantage. However, when the word “technology” is mentioned, what readily comes to mind are machines and other equipment used in production, but technology is much more than this; it refers to the complete or sum total of knowledge or ways of having things done. Technology includes inventions, techniques and the vast store of organized knowledge about everything from aerodynamics to zoology (Kontz et al, 1981). Perrow (1965) define technology as a technique or complex of techniques employed to alter material (human or non-human, mental or physical) in an anticipated manner. Technologies can only yield or lead to increased productivity or improved performance when combined effectively with other resources like human resources (Dauda & Akingbade, 2011). Technology affects the process in which products and services are designed, developed and distributed. Technology has an impact on product quality and price. A close look at the description of technology and innovations, one is left with no choice than to go further into finding out what technological innovation is about which is the focus of this study. However, it is important to know that responsiveness of management to technological innovation is a determining factor with regards to the effectiveness of the firm’s performance. A firm that does not make improvement with the change in production methods and techniques may be forced out of the market. Primitive or outdated technologies may not be efficient as new discoveries. The results of inefficiency in the use of outdated technology may include low 11 quality products, high prices of products, less quantities of products in the production runs, among others. Due to strategic nature of technology, Organization’s strategists constantly search the environment for technological changes that may significantly affect their organization’s operations, performance and survival. Technological changes in this sense will include changes in raw materials and the equipment used for production. Such strategists realize that changing technology can offer opportunities for improving objectives attainment or threatens the existence of the firm (Glueck and Jauch, 1972). Some organizations tend to undermine the effect of technological innovation, the outcome and price for such action is low profitability and performance or even liquidation for such organizations. Technological innovation affects the product or service life cycle. It is possible through investment in research and development to extend the life of a product that is approaching declining stage through technological innovation while on the other hand organization should take cognizance of the fact that the development of a new product may render some closely related product obsolete. It is therefore necessary for organization to constantly scan the technological environment to determine what each technology innovation will mean to existing products. However, the impact of technological innovation will vary from industry to industry because some sectors of the economy are technologically more volatile than others. It is important to know that among Food Retail Industry in Ireland technological innovation has come to stay. The concept of technological innovations is the most important subject in attaining competitive advantage of the common marketplace (Adeoti and Adeoti, 2010; Adeoti, Odekunle and Adeyinka, 2010; Dada, Siyanbola, Ilori and Olamade, 2011; Siyanbola, 2012; Dada and Oyebisi, 2016). The first commercial introduction of a new 12 technology is technological innovation, which may take the form of process, product or service. This is the progressive exploitation of new ideas and a continuous process, involving not only research and development (R&D) and new technology, but also all business functions (Dada, 2014). In recent times, the competitive advantage of any firm is the level of Technological innovations it has over its competitors. Firm’s competitiveness is the ability to provide products and services more effectively and efficiently than relevant competitors. At the firm level, the ability to compete effectively in both national and international market is dependent on the firm’s technological innovations which contributes to technology development, market orientation, cost reduction and quality improvement. In recent years, the relevance of technological innovation as a topical issue in policy and debate has increased (Adeoti et al., 2010). Indeed, technological innovation in SMEs which retail outlet is inclusive has been increasingly recognized as the engine for economic growth (Yeh and Chang, 2003). Using technological innovations, SMEs can improve/develop new products, process or business system that will help in meeting customer’s need, stay ahead of competitors, explore new markets and grow. Technological innovation is viewed as important to a firm’s survival due to an increase in the market competition. (Hult, Thomas, Robert, Hurley and Gary, 2004). 1.2. Statement of the Problem In today’s business environment, firms are faced with stiff competition from their competitors irrespective of the industry but the ability for a firm to stand out amongst its competitors gives it an edge. It is without doubt to say that one of the surest ways for a firm to achieve this is by technologically innovativeness. However, both business owners and employees in the Food Retail Industry specifically Ireland find it difficult to blend some of the factors of technological innovation (e.g. product innovation and process innovation) to influence 15 Hypothesis two H0: Technological innovation has no significant influence on Home service delivery. H1: Technological innovation has significant influence on Home service delivery Hypothesis two and its variables are also what most researches find it difficult to contend with, past researchers tends to focus more technological innovation and firm performance e.g. (Stephen 2012) and these two variables are very broad leaving out indicators such as Home service delivery. Thus, this study sees it as set back and indicate interest in looking at the influence that technological innovation will have on Home service delivery. 1.7. Significance of the Study The importance of this study is that it will be looking at the influence of Technological Innovation on Market's Competitive Advantage. Technological Innovation will be looked at as against competitive advantage and Home service delivery. The contributions that the above indicators have using questionnaires and how precautionary measures can be taken to reduce the menace and frustration among Food Retail Outlets in Dublin and Ireland at large so as to enable it play its role in the economy thereby leading to creation of job opportunities, better exportation, creating locally made good, among others. To the society, food retail industry and industries at large, this study can be used as a strategic tool for them to see the need and usefulness of technological innovation leading to the plea for improved management and maintenance of sectors so as to enhance their competitive capacity leading to better economy development thus creating an enabling environment for establishment of more firms. To the government, this study will serve as yardstick for them to see the need for better government policy that will enhance the availability and capacity for 16 business owners to see the need for technological innovation as to aid movement of both goods and services contributing to improved employment and better economy performance. Finally, this study will be of relevance to other researchers as they can use it for their assignment serving as guide, other researcher can as well use this study as reference point citing some of its authors. 1.8. Scope of the study This study is on the influence of Technological Innovation on Firm's Competitive Advantage, but emphasis will be on Food Retail Industry in Dublin City with Tesco Food Retail Outlet (Supermarket) as case study. Tesco is used because it is the leading supermarket in Ireland, employing 13000 people across the country and the store is one of the biggest buyers of Irish foods and drinks in the world. However, due to the size largeness of Tesco and its employee’s strength, this study will focus on Tesco foods located at Jervis Shopping Centre Dublin 1. Survey research method with the aid of questionnaires which is a primary source of data collection will be adopted. Tesco foods located at Jervis Shopping Centre Dublin will be used due to its proximity and recent Covid 19 outbreak restriction on movement. It is also to be noted that a Pilot study will be conducted as this will help to determine the validity and reliability of the research instrument (questionnaire). Finally, responses gotten from the respondent who happens to be friends, customers and line managers of the firm will be converted into data using simple percentage and frequency tables while regression with the aid of Statistical Package for Social Sciences (SPSS) will be used for the test of hypotheses as indicated above. 17 CHAPTER TWO 2.0 LITERATURE REVIEW This chapter will focus on the review of other literature that are relevant to the study. The chapter will focus on three major headings: The Conceptual Framework, Theoretical Framework and Empirical Framework 2.1. Conceptual Framework 2.1.1. Concept of Innovation/ Technological Innovation The word “Innovation” has its origin from the Latin word “novus”, meaning new. Innovation is defined as the introduction of something new or a new idea, method or device (Tornatzky and Fleischer, 1990). Kamzi (2003) sees technology to include those factors that are related to knowledge applied, material and machine used in the production of goods and services which have an impact on the business of the organization while Ayres (2008) identified technology as the wealth of companies. Technology refers to all the methods available to an organization for the conversion of raw material into finished products or services (Griffin, 1996). Onodugo (2000) sees technology as the methods and techniques employed in productive activities. The changes in technology results from breakthrough in research and development. One of the key elements that defines a society or civilization is technology. The impact technological innovation has had on the development of a company and its contributions on the economic growth of firms has been widely documented. The primary aim of technological innovation is to ensure the survival of the organization, as well as the business environment, which in turn is aimed at achieving sustainable increased market share (Abernathy & Utterback, 2005). 20 process technology is concerned with how products are manufactured and delivered to customers (Tate and Taylor, 1983). 2.1.2. Influence of Technological Innovation on Retail Industry The retailing structure are presented in four segments along a continuum, namely: innovative, big middle, low-price and “in trouble”. Retailers in the innovative segment are quality conscious and consumer satisfaction. Low-price retailers are price-conscious because they see the market price as the best environment for their activities. The big middle retailers excel in the value offering market while “in trouble” retailers are unable to deliver high levels value in comparison with their competitors (Levy et al., 2005). Generally, innovation in service industry is not usually technology based and does not attract much effort in research and development (R & D) (Trigo, 2013). This has caused the retail industries to devote their R & D efforts towards the development of new products rather than towards development of new means for improving the services deliverable to customers. Retailers usually adopt innovations developed by other parties because they lack the capability of creating their own. Thus, they mostly outsource all the activities devised in R & D. Notwithstanding these opposing conditions, innovative technologies available for transporting merchandise and delivering services is catching up fast. This has caused the availability of many interactive and innovative systems that are able to update information on market dynamics and trends. These innovative technologies support consumers while shopping and retailers in business advancement. Even though these innovations pose challenges for the retail industry, it also creates an effective solution destined to improve the experience of consumer and retail management. 21 Different firms operating in the same industry possess different level of innovation. According to Cao (2014), the level of innovation by firms operating in the same industry may differ in terms of the nature and number of successful innovations. Retailers developed various innovation strategies such as the introduction of self-service technologies which helped to shift the traditional tasks executed by employees to an automated machine (Boeck & Fosso Wamba, 2010). Some other retailers developed innovations that offered new exciting shopping experiences to attract more consumers (Hristov and Reynolds, 2015). Thus, their study cut across many industries including the fashion industry. Researchers have carried so many researches in retail pertaining to store attributes and level of satisfaction of consumer such as quality of goods, product display, retail atmosphere and price of goods. 2.1.3. Role of Information Technology on Technological Innovation in the Retail Industry The mission, objectives and strategies to achieve organizational goals are all embedded in the strategic planning (Cleland & Ireland, 2006). The strategic planning provides the blueprint that stand as a guideline for the attainment of organizational objectives. The agreement between the Information Technology and business components is essential for an organization to have maximum competitive advantage over its competitors. The dynamic interplay between a firm and its external environment helps to sustain its competitive advantage (Lewis, 2013). When things are in a state of alignment, they naturally and harmoniously work together to achieve a common goal. Organizations are always seeking competitive advantages in the industry they function (Papulova, 2006). There are several ways to attain competitive advantage, but many organizations focus a few methods of gaining a leg up on the competition. To sustain competitive advantage in the prevailing dynamic market environment, Organizations need to embrace 22 Information Technology otherwise will be faced with the risk of becoming irrelevant in the long run. Maximum competitive advantage may be attained by firms which strive to attain perfect alignment (Porter, 2008). The organization’s alignment can be in the following state, Chaos; when the business alignment is in the state of chaos, there is gross misalignment between the functions and processes of the organization (Pierterse, 2010). The organization find itself in a state of total confusion because there is no strategic intent is any action undertaken. Misfit; in this state of alignment, there is a very low collaboration between the organizational functions. Most functions are aimed to achieve different goal and as such the alignment with these functions are minimal. Mixed; in this state of alignment, there exist some common goals in the business functions but most part of the business is not aligned, and it result to coincidental strategic intent in most cases (Elms & Low, 2013). Threshold; this is the lowest level alignment needed within an organization to deliver products and services. Nevertheless, it is vital to know that there is collaboration within the organization but not to the optimal level and as such, there is great need for improvement. The business strategy is achieved when there is harmony in the business alignment. However, most projects carried out within the organization will have strategic intent. To maximize competitive advantage, the organization need to align Information Technology to its business functions (Filippone et al., 2008). The information function should be aligned with the RBV (resource-based view) and the Business Development Model which clearly states that alignment of organization strengths defines a firm’s competitive advantage. A perfect alignment between the IT function and business strategy is needed in order to attain maximum competitive advantage. Every 25 determines how long the competitive advantage can be sustained. Imitability examines the ability of competitors to duplicate the competitive resources and competitive capabilities upon which the competitive advantage is built. Durability signifies the pace at which an organization’s competitive resources and competitive capabilities become outdated as a result of innovations and new technology (Wheelen and Hunger, 2010). The longer it takes for competitors to achieve imitation, the higher the probability of the firm to remain ahead of the competition (Thompson et al., 2012). Maximum competitive benefit is derived from the company’s ability to delay imitations or duplication of its competitive resources. Most scholars agree that the core competencies are the direct source of sustainable competitive advantage while other sources of sustained competitive advantage exist (Grant, 2010). These core competencies which are technologies and special skills that allow a company to provide a specific value added to the customers were highlighted by Lynch (2009). They provide the foundation of core products and services which are the main activities of the company. 2.1.5. Technology improving the quality of marketing in Ireland The development of ICT (Information and Communication Technologies) has attracted the attention of the organizations from different parts of the world to expand in the Irish markets. The marketing capabilities of the organizations are specifically reliant on even communication of the companies with the customers. The improvements in the communication channels through application of distinguished media vehicles allow an organization in improving the marketing efforts (Hockenberry, 2019). It has been noted that the present generation of customers prefer information while making a decision of purchase. In this connection the improvements in ICT 26 has helped Irish organizations in improving the scope of marketing through increased user- engagements. An example, through the inclusion of ICT the technological capabilities of Barry’s Tea were improved which has helped the business in maximizing networking-based operations with the different importers (Schmidt 2017). This has helped Barry’s Tea to become one of the largest tea importers in Ireland. In this connection, the organization developed the ICT apparatus with the purpose of engaging the customers in the different processes while improving their marketing skills. Moreover, it has been noted that the organizations in Ireland have taken the initiative of developing SEO activities with the purpose of improving their brand position and availability in the search engines. The increased availability of the organizations in different digital and social media platforms assures the customers of the quality of the proposition that would be delivered by the same (Hristov Ivanov & Pavlova Pavlova, (2017). An example, Eddie Rocket’s have taken the initiative of improving their availability in different search engines and social media platforms through allied SEO activities (Mummalaneni, Meng and Elliott 2016). The SEO services help organizations to gain increased exposure in the target market while improving their links of communication with the customers. The improvement in marketing communication techniques assisted the venture in retaining the trust and loyalty of the customers while increasing the scope of target market for the business. The development of efficient marketing communication techniques, while infusing relevant technologies, supports an organization in improving the market reach and sales volume (Pereira, 2019). The large number of data thefts suffered by organizations in Ireland affected the capability of business in retaining their brand value. There were a total number of 6,700 data breaches in the year 2019 as reported by Ireland’s Data Protection Commission (DPC) (Taylor, 27 2020). The data thefts affected the capability of the organizations in providing the consumers with secured payment options which also affected the interest of customers. According to Taylor (2020), the data thefts also affected the online buying behavior of the customers in Ireland which minimized by 3.2% within few months after being notified. Attention of the prospective and potential customer base was affected negatively by the data theft which created fear in the mind of existing and potential customers. The data thefts affected the marketing capability of the organizations in Ireland while drawing back and retaining the attention of the prospective and potential customer base towards their online offerings. 2.2. Theoretical Framework Drawing from that work of Ifeanyi (2015), the theory of this study will be the theory of diffusion of innovations. The theory of diffusion of innovation is a theory that seeks to explain how, why, and at what rate new ideas and technology spread through culture. Everett Rogers, a professor of communication studies, popularized the theory in his book Diffusion of Innovations; the book was first published in 1962. Rogers argues that diffusion is the process by which an innovation is communicated through certain channels over time among the participants in a social system. The origins of the diffusion of innovations theory are varied and span multiple disciplines. Rogers proposes that four main elements influence the spread of a new idea: the innovation itself, communication channels, time, and a social system. This process relies heavily on human capital. The innovation must be widely adopted in order to survive. 30 of some innovations in the industry. The study focuses on the link between technological innovations and competitions of food and beverage companies. Multistage sampling technique was employed to elicit information from one hundred and fifty firms in Lagos, Ogun and Oyo States, Southwestern Nigeria with a response rate of 64%. Both descriptive and appropriate inferential statistical analyses were used for the data. Using a standard framework, results revealed the existence of five types of innovations (product, process, market, strategic and behavioral) in the firms. The companies reached a moderate level of innovation (3.20) on a 5- point Likert scale. Process innovation was found to be highest (3.45), followed by product innovation (3.21), and the lowest for market innovation (3.02). The analysis of the data further revealed a high (3.95) level of competitions among the enterprises. Product quality (4.21) and firm’s flexibility (3.82) respectively contributed the highest and lowest levels of competitions of the industry. A Pearson correlation coefficient value of 0.55 indicated a positive correlation of medium intensity, statistically significant at the 0.01 (α = 0.44, ρ ≠ 0) confidence level (0 ≤ r ≤1). This shows that the higher the overall innovations, the higher the level of competitions of the companies. The paper concludes that the technological innovations in the food and beverage firms generated high competitions among the companies. Strategies should therefore be geared towards continuous expansion of innovations in the industry. Adedamola, Oluseye and Yusuf (2013) used econometric model to analyze the impact of technological innovation and R&D on firm performance in the Nigerian service sector. The sector is attracting interest in policy circle because it has become the fastest growing sector globally. The analysis was based on data obtained from the Nigeria’s innovation survey, 2008 undertaken among 500 enterprises in the service sector with about 41% response rate. The instrument was guided by the third edition of the Oslo Manual standardized through validation 31 workshops under the NEPAD ASTII initiative. The result shows that technological acquisition, training and in-house R&D positively influence technological innovation while government support and embodied knowledge are insignificant. Also, technology innovation and R&D have positive impact on firms’ performance. The study offers an opportunity to understanding the impact of technology innovation and R&D on performance of service firms in developing country context. Stephen (2012) in a study evaluated the impact of technology innovation on the performance of indigenous textile weaving firms in south-western Nigeria. Primary data were collected through structured questionnaire administered on indigenous weavers in the study area. Results of correlation analysis showed the relationship between business performance and source of raw material (r=0.17, t=2.84, p<0.01); product innovations (r=0.10, t=1.65, p<0.05); investment in technology innovations (r=0.19, t=3.25, p<0.01); business advisory services (r=0.11; t=1.74, p<0.05); reduction of tax (r=0.11; t=1.73, p<0.05), export incentives (r=0.13; t=2.09, p<0.01); and total capital investment (r=0.21; t=3.55, p<0.01). Factors with negative effect are cost of R&D (r=-0.19; t=3.24, p<0.01); threats by competitors (r=-0.18; t=3.06, p<0.01) and production of quality products (r=-0.09; t=1.64, p<0.05). Regression analysis and its impact on business performance were local marketing, (β=17.95, z=11.18,p<0.01); national marketing, (β=18.35, z=1.64,p<0.01); product innovations, (β=3.17, z=3.03,p<0.01); total capital invested (β=2.68, z=10.19,p<0.01) and experience in business, (β=2.66, z=2.96,p<0.01). Factors with negative effect were payment of tax, (β=-17.46, z=-21.31,p<0.01); regional marketing, (β=- 17.38, z=-18.08,p<0.01); local competition, (β=-16.53, z=-9.02, p<0.01). The study concluded that sale of products in the domestic market; product innovations; total capital invested and years of experience in business were the factors responsible for the resilience and sustenance of 32 indigenous textile weaving firms. However, factors such as payment of tax, sale of products in regional market, local competition, trade liberalization and cost of R&D are the major constraints in the performance of firms in the industry. 35 3.7. Data collection methods The data was collected by questionnaire which was directly administered by the researcher to the respondents and collected. The listed questions will base on the assumptions that the responses should be significant for testing the necessary degree of hypothesis. The use of questionnaire will be a primary source of data collection. 3.8. Research instrument The research instrument to be used for this work is a semi-structured questionnaire. The items were constructed to elicit response from the respondents. The questionnaire format chosen to carry out this research will be the 5-point scale of strongly agree (SA) agree (A), Undecided (U), disagree (D), strongly disagree (SD). It means that the respondent is to choose an option of their choice. 3.9. Pilot study For the pilot study of this research, the researcher will consider 10 persons which will include friends and customers of Tesco. 3.9.1. Validity of the research instrument The validity of this study will be drawn from pre-study which will determine how well the research questions are able to measure the relationship between Technological Innovation and Competitive Advantage of the study and this will further determine the reliability of the study. 36 3.9.2. Reliability of the research instrument According to Asikia (2004), reliability is defined as the consistency between independent measurements of the same phenomenon. The reliability of a test refers to the degree of consistency and precision (accuracy) with which the test measures what it purports to measure that is, how repeatable or consistent the researcher’s measures are or the degree to which the test measures the same time after time and item after item. The reliability of the research instrument was based on the result gotten from the pilot study and this was used to judge the content of the research question in order to determine whether there will be adjustment. 3.10. Data analysis For the research objective, information gotten and converted into data was analyzed using simple percentage and frequency table to get respondents perception about the subject matter. while regression with the aid of Statistical Package for Social Sciences (SPSS) was used for the test of hypothesis. 3.11. Ethics The essence of this study is to find out the influence of Technological Innovation on Competitive Advantage within the Irish Food Retail Market in fulfillment of an academic pursuit. Thus, the questionnaire was used for academic purpose only. 37 CHAPTER FOUR 4 DATA PRESENTATION, ANALYSIS AND INTERPRETATION The essence of this chapter was to present and discuss the analysis of the data collected from the questionnaires survey. Frequency, percentage and simple regression were used to analyze data generated. The result obtained from the analysis form the basis upon which conclusions are drawn from the study. Table 4.1: Questionnaires distributions. Number of questionnaires distributed 65 Number of questionnaires retrieved 61 Number of questionnaires not retrieved 4 Source: Researcher’s Field Survey, 2020 Drawing from the table above, it can be said that of the total copies of questionnaires distributed, 65 which represented a 100%, 61(94%) which is very much valid was successfully retrieved and used for this study but 4(6%) was not returned and thus was not used. 4.1. DATA PRESENTATION Data will be presented in frequency and percentage tables as this will aid the study in converting respondents’ responses into data. Research question one: What is the significant relationship between technological innovation and competitive advantage of a retail outlet 40 Table 4.5 Coefficients(a) Model Unstandardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta B Std. Error 1 (Constant) .644 .299 2.154 .046 The Scan Pay Go app used by Tesco has helped to improve its competitive edge in the Irish food retail industry (Q3) .851 .067 .951 12.624 .000 a Dependent Variable: It is easy for customers to download Tesco online app to coordinate on a shopping list (Q8) Table 4.6 Model Summary N Df Correlation (R) Co-efficient Co-efficient (R2) Determine Sig level T-cal T-tab F-cal Remark 61 60 0.951 0.904 0.000 12.624 2.000 159.370 Sig Source: Researcher’s Field Survey, 2020 Y = a + bx + e which can also be represented as (CA= a0 + a1TI + e) Where Y (CA) = dependent variable (Competitive Advantage) a = intercept bx (a2TI) = Partial slope coefficient of Technological Innovation e = Stochastic error term which represent other independent variables not included in the model 41 4.1.1 Interpretation Since the result gotten shows that the R= 95.1%, R2 = 90.4% which is high and moderate, and t- calculated value is 12.624 which is greater than t-tabulated of 2.000 under 60 degrees of freedom at 0.000 significant level less than the generally 0.05 level of significance. Consequently, the null hypothesis was rejected and the alternative accepted owing to the fact that there is a significant relationship between technological innovation and competitive advantage at Tesco Retail Outlet. 4.1.2 Discussion of findings From the findings above, it can be deduced that there is a significant relationship between technological innovation and competitive advantage at Tesco. The implication of this is that effective technological innovation will affect or influence firms’ competitive advantage. In view of the findings, there is no doubt in saying that any firm that seeks to be on top of its game with the bid to having competitive edge over its competitors must see to it that it employ effective technological innovation as this has been proven to be a sure way to increasing customers satisfaction and meeting their demands. It is important to know that the findings of hypothesis one of this study coincides with that of Vera (2013) who is of the opinion that technological innovation is one of the driving and fundamental instruments of growth strategies. The study drew on the theoretical literature and empirical studies on innovation, management and capabilities of technology in an effort to explore the role of technological innovation on new product development. The study posits the importance of technological innovation as an essential ingredient of competitive advantage for new product development. SPSS was used for window 12.0 software pack as statistical analysis tool for all the data, and Pearson's analysis to verify the relationship between 42 technological innovation and new product development, and t-test to verify the hypotheses. Constructed research variables for measurement (α) was used to measure the internal consistence of the study. For Cooper and Emory (1995) if Cronbach’s alpha (α) is between 0.70-0.98, then the reliability is higher but if it is lower than 0.35, then the results are not reliable and should be refused. For Vera's study, Cronbach’s α was above 0.80, indicating that the results of the survey were all well within the parameters of reliability. The survey findings verify the existence of correlation between technological innovation and firm performance on new product development. 45 Restatement of Hypothesis two H0: Technological innovation has no significant influence on Home service delivery. H1: Technological innovation has significant influence on Home service delivery Result of Regression Analysis on Technological innovation and its significant influence on Home service delivery Table 4.8 Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .891(a) .794 .791 .33136 a Predictors: (Constant), The use of Data Analytics by Tesco, has aided in better Home service delivery (Q13). Table 4.9 ANOVA(b) Model Sum of Squares Df Mean Square F Sig. 1 Regression 27.579 1 27.579 251.171 .000(a) Residual 7.137 59 .110 Total 34.716 60 a Predictors: (Constant), The use of Data Analytics by Tesco, has aided in better service delivery (Q13). b Dependent Variable: It is convenient to stop by and order for fresh item at Tesco because customers already have ideas of what they offer via internet display of product and prices (Q16) 46 Table 4.10 Coefficients(a) Model Unstandardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta B Std. Error 1 (Constant) 1.863 .170 10.965 .000 The use of Data Analytics by Tesco, has aided in better service delivery (Q13) .639 .040 .891 15.848 .000 a Dependent Variable: b Dependent Variable: It is convenient to stop by and order for fresh item at Tesco because customers already have ideas of what they offer via internet display of product and prices (Q16) Table 4.11 Model Summary N Df Correlation (r) Co-efficient Co-efficient (R2) Determine Sig Level t-cal t-tab F-cal Remark 61 60 0.891 0.794 0.000 15.848 2.000 251.171 Sig Source: Researcher’s Field Survey, 2020 Y = a + bx + e which can also be represented as (SD= a0 + a1TI + e) Where y (SD) = dependent variable (Home Service Delivery) a = intercept bx (a2TI)= Partial slope coefficient of Technological Innovation e = Stochastic error term which represent other independent variables not included in the model 47 4.1.3 Interpretation The result gotten shows that the R= 89.1%, R2 = 79.4 moderately high, and t-calculated value is 15.848 which is greater than t-tabulated of 2.000 under 60 degrees of freedom at 0.000 significant level less than the generally 0.05 level of significance, consequently the null hypothesis was rejected and the alternative accepted owing to the fact that Technological innovation has significant influence on service delivery 4.1.4 Discussion of Findings From the above point of view, it can be said that Technological innovation has significant influence on service delivery. The implication of this is that management of firm such as Tesco must see to it that it is always innovative with regards to its technological advancement as this is one sure method that has proven to be positively impactful to customers/ consumers satisfaction with regards to service delivery. Thus, all hands must be on deck to see to it that its technology is not taking for granted but rather supported. This study also corroborates with that of Ifeanyi O (2015) who in a study appraises the effect of technological innovation on performance of Nigeria manufacturing firms. The purpose of the study was to determine whether there is technological innovation in some performing manufacturing firms in Nigeria and the extent it has contributed to their performances. The study population were 8725 being the total staff strength of ten manufacturing firms spread across ten sub sectors of manufacturing sector in Nigeria Stock Exchange while the sample size was extracted from the population using Taro Yameni method. Structured questionnaires were used to generate the primary data. The study used descriptive type of survey design while t-statistics was adopted for hypotheses testing. The result of the study revealed that technological innovation has significant impact on performance, the study concludes that even though most firms in the manufacturing sector are not performing, the result 50 recognition and acceptance when compared to other competitors as this can be seen from the chapter four analysis. Also, it is important to know that the findings of this study coincide with the findings of Onodugo (2000) who sees technology as the methods and techniques employed in productive activities and that the changes in technology results from breakthrough in research and development. which is because the impact of technological innovation has had on the development of a company and its contributions on the economic growth of firms has been widely documented. The study also corroborates with that of Abernathy & Utterback, (2005) who opine that the essence of technological innovation is to ensure the survival of the organization, as well as the business environment, which in turn is aimed at achieving sustainable increased market share. Lastly, the findings of this study support the fact that technological innovation as an adopted strategy is an important major driver of firm performance with respect to competitive advantage and Home service delivery, thus should be developed, adopted and implemented due to the fact that it has been proven in this study to be an integral part of the Tesco's business strategy that made it stand out amongst its competitors. 5.2. Conclusion Drawing from the finding in chapter four, it can be said boldly that technology has come to stay and should be embraced by firms that means well for themselves, this is due to that fact that having a clear understanding of the exact nature of technological innovations to be developed, adopted and implemented will enable firms to prioritize their market, production and technology strategies which will eventually lead to competitive edge and better service delivery. It can 51 further be concluded that; there is a significant relationship between technological innovation and competitive advantage and that technological innovation has significant influence on Home service delivery. 5.3. Recommendation Since it has been found out that there is a significant relationship between technological innovation and competitive advantage in Tesco Retail Outlet, real investment plan must be considered for technological innovations as this was supported by most of the respondents who strongly agrees and agrees to the fact that Tesco shop card has over the years helped to give consumers bonuses leading to more sales of its products and also that The Scan Pay Go app used by Tesco has helped to improve its competitive edge in the Irish food retail industry Result from chapter four have shown that there is a significant relationship between technological innovation and Home service delivery; Thus, firms such as Tesco that seeks to have better Home service delivery over its competitors must see to it that they do not take technological innovation for granted because any disruption in the technological innovation advancement will go a long way to negatively affecting the service delivery success of the firm. 5.4. 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