Abstract: This study examined the influence of strategic innovation on the performance of distribution systems among computer hardware distributors in Kenya, with operational efficiency assessed as a mediating variable. The study focused on four dimensions of strategic innovation: supply chain (technological), process, product, and business model innovation. Guided by the Resource-Based View, Diffusion of Innovations Theory, and Dynamic Capabilities Theory, the study adopted a descriptive survey design and a census approach targeting 25 managers and supervisors across 14 licensed and authorized computer hardware distributors.