STRATEGIC POSITIONING AND SUSTAINABLE COMPETITIVE ADVANTAGE IN COMMERCIAL BANKS IN KENYA
Abstract
Purpose of the study: The determined the effect of strategic positioning on sustainable competitive advantage in commercial banks in Kenya, specifically examining branding, customer relationship management (CRM), product promotion and innovation and technology as strategic positioning dimensions.
Statement of the problem: Despite extensive literature on strategic positioning, limited studies examine how branding, CRM, product promotion, and innovation specifically influence sustainable competitive advantage in Kenyan commercial banks.
Methodology: A mixed-methods research design was adopted, combining quantitative and qualitative approaches. The target population comprised 117 senior managers (heads of customer care, IT, and sales and marketing) across 39 commercial banks. Using stratified random sampling at 30%, 36 respondents were selected. Data were collected through structured questionnaires and interview schedules. Quantitative data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis, while qualitative data were analysed thematically.
Results of the study: All four strategic positioning dimensions positively and significantly correlated with sustainable competitive advantage. Product promotion was the strongest predictor (β = 0.499), followed by innovation and technology (β = 0.324), CRM (β = 0.106), and branding (β = 0.090). The regression model explained 59% of the variance in SCA (R² = 0.650, Adjusted R² = 0.590, F = 9.157, p < 0.001). Reliability coefficients exceeded 0.7 for all constructs (Overall Cronbach's Alpha = 0.819).
Conclusion and policy recommendation: Strategic positioning through branding, CRM, product promotion, and innovation and technology significantly influences sustainable competitive advantage in Kenyan commercial banks. Banks should invest in integrated digital branding, value-based CRM systems, targeted promotional campaigns, and continuous technological innovation. Regulators should create enabling environments for technology adoption while ensuring cybersecurity resilience.
Keywords: Strategic positioning, sustainable competitive advantage, branding, customer relationship management, product promotion, innovation and technology, commercial banks, Kenya.
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