Business vision on competitive advantage: A case of firms in the financial services sector in Kenya

Abstract

This study objective was to determine the influence of business vision on the competitive advantage offirms in the financial services sector in Kenya, focusing specifically on banking, microfinance, andsavings and credit societies institutions in Kenya. The theories underpinning this study resource-basedtheory. The positivism philosophy guided the study. The research design that was used was descriptiveand the technique used was cross-sectional. The study's target population was 1356 members in thefinancial services sector and explicitly banking, microfinance, and savings and credit organizations. Asample of 340 staff members was targeted using the Yamane formula, factoring in a 10% non-responseerror. The sampling technique was multi-stage sampling, and a closed-ended questionnaire was usedto collect quantitative data. The descriptive statistics used were mean, standard deviation, andpercentages, while the inferential statistics used were factor analysis, correlation coefficient, analysisof variance (ANOVA), and regressions analysis. The response rate was 92%, and the research foundout that competitive advantage had a positive and significant correlation with the business visionconstructs; shared vision r (306) =.565, p<.05; firm culture and values, r (306) =.583, p<.05; visionaryleadership (306) =.522, p<.05. On the regression, the business vision parameters had a significantinfluence on competitive advantage; shared vision (β = .286 t = 4.950, p<.05), the firm culture andvalues (β = .292 t = 4.629, p<.05) and the visionary leadership (β = .175 t = 2.959, p<.05). From theseresults, firm culture and values had a higher influence on the competitive advantage with a Beta of .292followed by shared vision with a Beta of .286, and lastly, the visionary leadership with a Beta of .175.