Human Resource Capability and Competitive Advantage of Sugar Companies in Western Kenya

Richard Misigo Imbambi,Ng’Ong’A E Aketch,Leon Awiti

doi:10.6007/ijarbss/v9-i5/5852

Richard Misigo Imbambi, Ng’Ong’A E Aketch + Show 1 more

Open Access

https://doi.org/10.6007/ijarbss/v9-i5/5852

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Abstract

The sugar industry contributes about 15 percent to the Kenya’s agricultural GDP and supports an estimated 25 percent of the country’s population. The objective of the study was to assess the influence of human resource capability in the context of strategic capability on competitive advantage of sugar companies in Western Kenya The target population was composed of six sugar companies; the respondents were 727 managers and the sample size consisted of 88 respondents with a response rate of 73%. The primary data was collected using a questionnaire pretested for validity and reliability. Descriptive and inferential statistics were used to analyze the data. The logit results showed that companies that had a strong human resource capability were 1.012 times more likely to be competitive compared to those that had a weak human resource capability; correlation result was a weak positive statistically insignificant correlation between human resource capability and competitive advantage( r= 0.003) and hypothesis result showed that there was no statistically significant relationship between human resource capability and competitive advantage of sugar companies in Western Kenya. It was concluded that companies that had strong human resource capability were more likely to enjoy competitive advantage compared to those that had weak human resource capability. Competitive advantage of the sugar companies in Western Kenya is positively influenced by the human resource capability. It was recommended that the sugar industry should pay keen attention to how human resource capabilities are placed and utilized. If observed, the competitive advantage would be enhanced which would then lead to better performance of the sector.

Highlights

Background to the StudyHow firms achieve and sustain competitive advantage is the most fundamental question in the field of strategic management (Rumelt, Schendel & Teece, 1994)
Multiple linear regression analysis was performed, and the findings showed that cultural and technological Knowledge Management (KM) dimensions made a unique statistically significant contribution to a firm’s competitive advantage (CA)
Study Findings Bio-data of the respondents The Bio-Data indicates that the human resource in the sugar company is up to the task as shown by the bio-data

Summary

Introduction

How firms achieve and sustain competitive advantage is the most fundamental question in the field of strategic management (Rumelt, Schendel & Teece, 1994). Effective strategic management requires an understanding of organizational resources and competencies as well as how each contributes to the formation of organizational strengths and to the development of a competitive advantage (Duncan, Gintei & Swayne, 1998). Top managers spend an inordinate amount of time analyzing, selecting, acquiring, or developing the necessary resources to enable their firm to gain competitive advantage. Beaver, and Nel (2006) concluded that to achieve competitive advantage, organizations need to link Human Resource competencies to business strategy, be sensitive to internal and external change and the needs of the diverse workforce.

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