Competitive characteristics on competitive advantage: A case of financial services sector in Kenya
Keywords:
agility, competitive advantage, competitive characteristics, competitive forces, dynamic capabilitiesAbstract
This study aimed to determine the influence of competitive characteristics on the competitive
advantage of firms in the financial services sector in Kenya, that is, banking, microfinance,
and savings and credit societies institutions, using the resource-based theory. The study
targeted 1356 members in the financial services sector. From the population, a sample of 340
staff members was targeted using the Yamane formula, factoring in a 10% non-response error,
and data was collected using a closed-ended questionnaire. The descriptive statistics used were
mean, standard deviation, and percentages, while the inferential statistics used were factor
analysis, correlation coefficient, analysis of variance (ANOVA), and regressions analysis. The
response rate was 92%. The study found out that competitive advantage had a positive and
significant correlation with the competitive characteristics constructs; agility r (306) =.592,
p<.05; competitive forces, r (306) =.540, p<.05; dynamic capabilities (306) =.587, p<.05. On
the regression, the competitive characteristics constructs had a significant influence on
competitive advantage: agility (β = .287 t = 5.157, p<.05); competitive forces (β = .248 t =
4.878, p<.05); and dynamic capabilities (β = .286 t = 5.201, p<.05). This shows a change of
dynamic capabilities by a unit influenced competitive advantage by .286. From these results,
agility had a higher influence on the competitive advantage with a Beta of .287 followed by
dynamic capabilities with a Beta of .286, and lastly, the competitive force with a Beta of .248.
On the hypothesis test, the study found out that competitive characteristics have a significant
influence on the achievement of competitive advantage (β = .687 t = 16.472, p<.05) hence
rejected the null hypothesis of the study. The study recommends that managers should consider
agility as a predominant principle guiding strategic and operational activities in the business
environment on competitive characteristics
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