The Effect of Competitive Advantage on the Relationship between Strategic Change and Performance of Firms in the Alcohol Industry in Kenya

Abstract

This paper examined the effect of competitive advantage on the relationship between strategic change and firm characteristics on performance of firms in the alcohol industry in Kenya. Previous studies dwelt on effect of limited aspects of strategic change such as marketing leaving out critical aspects like scope of strategies, resource deployment patterns and competitive advantages. The study was underpinned by the Resource-Based Theory (RBT). The study adopted a mixed method survey research design using qualitative and quantitative methods. The population was 25 local firms registered by Kenya Revenue Authority by 2012 and approved by National Authority for the Campaign Against Alcohol and Drug Abuse, (NACADA) by 2015. A saturated sample consisted of 100 respondents to get primary data. Correlation and regression analysis were used to determine the relationship between competitive advantage and organizational performance. Pearson correlation was used to describe how the variables were related and the strengths of the relationship between competitive advantage and organizational performance. Findings revealed that there was a fairly strong significant positive correlation between competitive advantage and organizational performance.