The Influence of Psychological Traits, Managerial Discretion, and Technology Transfer on Innovative Success of Chinese Multinational Corporations in Kenya

Abstract

In the fierce international competition, the critical role of innovation is cored in driving corporations' growth, competitiveness, and sustainability. This study investigates the influence of psychological traits, managerial discretion, and technology transfer on the innovative success of Chinese multinational corporations (MNCs) operating in Kenya. Drawing on the Conservation of Resources (COR) theory, this longitudinal study examines the roles of curiosity, resilience, creativity, managerial autonomy, and technology transfer in shaping innovation performance over three-time points: 2018 (T1), 2021 (T2), and 2023 (T3). Data was collected from 216 top management team (TMT) members using structured questionnaires and analyzed using structural equation modeling (SEM). The findings reveal that psychological traits, particularly curiosity and resilience, significantly contribute to innovation. Managerial discretion emerges as a critical enabler of innovation, enhancing firms’ ability to make bold, adaptive decisions. Technology transfer plays an important mediating role in driving innovative outcomes, although its impact fluctuates over time. The study highlights the dynamic interplay between individual traits, organizational factors, and external knowledge transfer in fostering innovation. The theoretical contributions include a deeper understanding of how psychological traits, combined with managerial discretion and technology transfer, drive innovation in cross-cultural and developing market contexts. Practically, the study offers insights into fostering innovation in MNCs by nurturing key psychological traits, promoting managerial autonomy, and leveraging technology transfer effectively. These findings provide actionable strategies for MNCs seeking to enhance their innovative capacities and sustain competitive advantage in volatile markets like Kenya.