Technological innovation as a cost leadership strategy catalyst: impact on organizational performance in developing countries

Abstract This study evaluated the impact of technological innovation (TI) as a cost leadership strategy (CLS) catalyst on organizational performance (PF) in developing countries, focusing on the mediating role of the macroenvironment (ME) in Kenya’s public universities. This study utilized a quantitative research design. A total of 200 managers were purposively sampled from a targeted population of 400 managers from 22 public chartered universities. Data were acquired through a cross-sectional survey utilizing questionnaires and analysed using partial least squares structural equation modelling (PLS-SEM). The results indicated that technological innovation integrated into cost leadership strategy (CLTI) significantly impacted organizational performance. CLTI had a significant relationship with the ME. ME had a significant influence on organizational performance. The ME significantly mediated the effect of CLTI on organizational performance. This study recommends that managers integrate TI into their CLS, prioritizing processes, products, and market innovation.