Expertise of Independent Director and Corporate Innovation Performance of the Non-Financial Firms Listed in Nairobi Securities Exchange: The Moderating Role of Technology Diversity Strategy

Abstract

Purpose – This study explores the moderating effect of technology diversity strategy (TDS) on the association between the expertise of independent directors (EID) and corporate innovation performance (CIP) in non-financial firms listed on the Nairobi Securities Exchange (NSE) in Kenya.

Design/Methodology – A total of 40 non-financial firms listed on the Nairobi Securities Exchange (NSE) were considered in the study. Inclusion and exclusion criteria were applied to select firms that were listed during the period 2010–2024.

Findings – The empirical results indicate that technology diversity strategy plays a significant moderating role in the nexus between independent directors’ expertise and corporate innovation performance.

Practical Implications – Non-financial listed firms can boost innovation performance by combining diverse technology strategies with the strategic oversight of independent directors.

Originality/Value – By integrating corporate governance and technology strategy perspectives, this study offers a novel explanation of how technology diversity strategy shapes the nexus between independent directors’ expertise and innovation outcomes, contributing empirical evidence from Kenyan listed firms, a context largely underexplored in prior research.

Keywords: Expertise of independent director, Corporate Innovation Performance, Technology Diversity Strategy.