The Effect of Organizational Resources on Organizational Competitive Advantage of the Banking Sector in Kenya

Prisca Jepkemboi Choge,Gregory Namusonge,Enock Gideon Musau,Elizabeth Nambuswa Makokha

doi:10.6007/ijarbss/v8-i10/4771

Prisca Jepkemboi Choge, Gregory Namusonge + Show 2 more

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https://doi.org/10.6007/ijarbss/v8-i10/4771

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Abstract

Globalization has made enterprises to compete and confront each other on a global scale. It therefore forces business organizations to comprehend the relationship between the internal strengths and weaknesses of their resources as well as their potential effects on their competitive advantage and performance. In this regard the study was designed to assess the effect of organizational resources on organizational competitive advantage in the banking sector in Kenya. From the results, correlations among the dimensions were significant material resources, technology, financial resources and human resource, where r=.641**, r= .659**, r= .648**and r=.682**respectively were also positively and significantly related to competitive advantage where P<0.05. The results showed that all the four predictors (Material Resources, Technology, Capital and Human resources) jointly explained coefficient of determination (R square) of .681indicated that the model explained only 68.1percent of the variation or change in competitive advantage. The banking sector needs to further enhance their aggregate resources for continued sustainable dynamic capability. This calls for reconfiguration of resource capabilities for continuous improvement to enable coping with the dynamic business environment

Highlights

In the present era of globalization enterprises compete and confront each other on a global scale
RESEARCH FINDINGS AND DISCUSSION Organizational resources are vital for superior business performance and sustainable competitive advantage (Galbreath, 2004)
The item on premises gave an outcome that 0.4 percent strongly disagreed, 9.7 percent disagreed, 19.4 percent neither agreed nor disagreed, 34.8percent agreed and 35.7 percent strongly agreed that the expensive premises occupied by their company gave them competitive advantage (Mean = 3.96 SD = .990)

Summary

Introduction

In the present era of globalization enterprises compete and confront each other on a global scale. The organizational resources, capabilities and processes should be configured in a way that ensures average utility so as to differentiate the organization from peers and confer external competitiveness to the organization to secure sustainable competitive advantage (Mahasi, 2016). In this regard banks have to effectively and efficiently utilize their resources to create competitive advantage to augment their global and regional presence. Grant cited in Mahasi, (2016) argues that lasting competitive advantage requires the synergistic coordination and renewal of bundles of resources. banks just like any other organizations are beset with challenge of resource selection capability which influences their ability to renew their capabilities and, to survive. Strategic renewal and synergistic coordination of resources presents both opportunities and challenges for organizations (Agarwal & Helfat, 2009)

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