Strategic Response and Competitive Advantage of Telecommunication Firms in Nairobi City County, Kenya
Abstract
Strategic response is used to improve competitiveness in organizations. Innovation has been adopted as a strategic response to volatile business environments. However, business sustainability in highly competitive markets remains a challenge for many businesses in Kenya. This study examined strategic response and competitive advantage of telecommunication firms in Nairobi City County, Kenya. The specific objectives were to establish how process automation, product development, market development and strategic alliances influence competitive advantage of telecommunication firms in Nairobi City County, Kenya. The theories that supported this study include diffusion of innovation theory, resource-based theory, economic entrepreneurship theory and theory of the innovative firm. Descriptive research design was used with questionnaire as the instrument for data collection. Reliability of the study instrument was established using Cronbach Alpha, internal consistency method. Validity of the research instrument was determined using content, face and construct validity. Data was collected from 64 telecommunication firms in Nairobi City County. The unit of observation was strategic managers, marketing managers and information technology managers in the telecommunication firms. Data collected was analyzed using SPSS version 28 and presented in form of frequencies, descriptive and inferential statistics which will be used to derive conclusions. The study conducted a multiple regression analysis to determine the relationship between strategic response and competitive advantage of telecommunication firms. Correlation results revealed that strategic response influences competitive advantage of telecommunication firms in Nairobi City County. The results indicated that there was a positive and significant relationship between product development, market development, strategic alliances and competitive advantage. The study recommends adoption of strategic response in telecommunication firms to improve competitive advantage.
Keywords: Strategic Response and Competitive Advantage of Telecommunication Firms in Nairobi City County, Kenya
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