DYNAMIC CAPABILITIES AND COMPETITIVE ADVANTAGE OF THE TELECOMMUNICATION INDUSTRY IN KENYA
Abstract
Purpose of the Study: The study aimed to assess the dynamic capabilities and competitive advantage of telecommunications companies in Kenya, investigating the impact of sensing, seizing, and reconfiguration capabilities on firm competitiveness within the sector.
Findings: The research revealed that sensing and seizing capabilities are crucial for a firm's competitive advantage in the telecommunications industry. Additionally, factors such as adaptability, innovation, learning, development, and resource mobilization were identified as key elements influencing a company's competitive edge.
Conclusion: The study concludes that to sustain a competitive advantage in the telecommunications sector, firms need to prioritize the development and deployment of dynamic capabilities, including sensing, seizing, and reconfiguration. Attention to factors such as adaptability, innovation, learning, and resource mobilization is essential for maintaining competitiveness in this dynamic industry.
Recommendation: The study recommends that telecommunications firms in Kenya focus on enhancing their dynamic capabilities, particularly in sensing, seizing, and reconfiguration. Moreover, attention should be given to fostering adaptability, innovation, learning, development, and effective resource mobilization strategies to sustain and strengthen their competitive advantage in the market. Additionally, future research should explore the development of parallel strategic practices and organizational techniques to further enhance competitiveness in the telecommunications industry.
Keywords: Telecommunications, Dynamic capabilities, Competitive advantage, Strategic Agility
References
Amankwah-Amoah, J., Khan, Z., Osabutey, E.L., 2021. COVID-19 and business renewal: Lessons and insights from the global airline industry. International Business Review30 (3), 101802.
Autio, E., R. Mudambi, & Yoo, Y. (2021). Digitalization and globalization in a turbulent world: Centrifugal and centripetal forces. Global Strategy Journal, 11, 3-16. DOI: https://doi.org/10.1002/gsj.1396
Barney, J. B. (2001b): Resource-based theories of competitive advantage: a ten-year retrospective on the resource-based view, Journal of Management, 27 (6), 643-650.
Darmawan, D., & Grenier, E. (2021). Competitive advantage and service marketing mix. Journal of Social Science Studies (JOS3), 1(2), 75-80. metromedia.education
Gachigo, S. M., Kahuthia, J. & Muraguri, C. (2019). Exploration innovative strategy and performance of the telecommunication industry in Kenya: A case of Safaricom PLC in Nairobi metropolis. International Academic Journal of Human Resource and Business Administration, 3(6), 299-319
Ghosh, S., Hughes, M., Hodgkinson, I., & Hughes, P. (2022). Digital transformation of industrial businesses: A dynamic capability approach. Technovation, 113, 102414.
Hanmaikyur, T.J.Competitive Intelligence, competitiveness, customer, marketing, competitor, product, innovativeness, International Journal of Business Systems and Economics: 2360-9923, Volume 13, Issue 3, (June, 2023) pages 68 – 93 DOI: 272614527311465www.arcnjournals.org operational efficiency
Haseeb, A., Xia, E., Saud, S., Ahmad, A., & Khurshid, H. (2019). Does information and communication technologies improve environmental quality in the era of globalization? An empirical analysis. Environmental Science and Pollution Research, 26, 8594-8608
Karim, M.S., S. Nahar, & M. Demirbag. (2022). Resource-based perspective on ICT use and firm performance: A meta-analysis investigating the moderating role of cross-country ICT development status. Technological Forecasting and Social Change, 179, 121626
Karim, S., & Capron, L. (2016). Reconfiguration: Adding, redeploying, recombining, and divesting resources and business units. Karim, Samina and Lawrence
Capron (2016).“Reconfiguration: Adding, redeploying, recombining and divesting resources and business units.” Strategic Management Journal, 37(13), E54-E62.
Kola, (2023) Effect of digital transformation on competitive advantage of telecommunication firms in Kenya
Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital transformation: An overview of the current state of the art of research, SAGE Open, July-September 2021, 1-15. https://doi. org/10.1177/21582440211047576
Ndolo, P. S. (2015). "The relationship between operational efficiency and financial performance of firms listed at the Nairobi Securities Exchange". A Research Project Presented in Partial Fulfillment of The Requirements for the Award of the Degree of Master of Science Finance, School of Business, University of Nairobi
Njoroge, G. W., & Kyalo, J. (2023). An investigation of digital capabilities and performance of telecommunication companies in Kenya. The Strategic Journal of Business & Change Management, 10 (4), 829 – 850. http://dx.doi.org/10.61426/sjbcm.v10i4.2789
Penrose, E. T. (1959). The Theory of Growth of the Firm, Basil Blackwell, London Peteraf, M. A. (1993). The cornerstones of competitive advantage: a resource‐based view. Strategic management journal, 14(3), 179-191. http://dx.doi.org/10.1002/smj.4250140303
Porter, M. E. (2001). Competitive Strategy: Techniques for Analyzing Industries and Competitors (1st ed., pp. 68-69). New York: Free Press
Prahalad, C.K. and Hamel, G. (1990) The Core Competence of the Corporation. Harvard Business Review, 79-91.
Rahab (2023) first mover strategy and performance of selected telecommunication application service firms in Kenya
Saeed, H., & Yazdani, N. (2021). impact of human resource management practices on sustainable competitive advantages for the universities of pakistan keeping knowledge management capacity as mediator. International Journal of Management Research and Emerging Sciences, 11(3).
Tarvainen, T. (2020). Strategies of European Telecom Operators in Challenging Environment.
Teece D.J. Dynamic capabilities as (workable) management systems theory. J. Manag. Organ. 2018; 24:359–368. doi: 10.1017/jmo.2017.75.
Teece, D.J., Pisano, G. and Shuen, A. (1997) Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18, 509-533.
http://dx.doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Tempelmayr, D., Ehrlinger, D., Stadlmann, C., Überwimmer, M., Mang, S., & Biedersberger, A. (2019). The performance effect of dynamic capabilities in servitizing companies. Journal of International Business Research and Marketing, 4(6), 42-48.
Vishwakarma, S., Zhang, X., & Lyubchich, V. (2022). Wheat trade tends to happen between countries with contrasting extreme weather stress and synchronous yield variation. Communications Earth & Environment, 3(1), 261
