STRATEGIC RESPONSE AND COMPETITIVE ADVANTAGE OF TELECOMMUNICATION FIRMS IN NAIROBI CITY COUNTY, KENYA
Abstract
Purpose of the study: The study examined the influence of strategic response on competitive advantage of telecommunication firms in Nairobi City County, Kenya.
Methodology: A descriptive research design was adopted. The target population consisted of 192 respondents comprising strategic managers, marketing managers, and information technology managers drawn from 64 telecommunication firms through a census approach. The data collection instrument was a structured questionnaire. A pilot study was conducted to test the reliability and validity of the research instrument using Cronbach's Alpha, content validity, face validity, and construct validity through Confirmatory Factor Analysis. Data were analyzed using descriptive and inferential statistics including correlation and multiple regression analysis.
Findings: The study found that process automation, product development, market development, and strategic alliances have positive influence on competitive advantage of telecommunication firms. Correlation results revealed strong positive associations between all strategic response variables and competitive advantage. Regression results indicated that product development, market development, and strategic alliances have significant positive relationships with competitive advantage, while process automation showed a positive but non-significant relationship.
Conclusions: The study concludes that strategic response significantly influences competitive advantage of telecommunication firms in Nairobi City County, Kenya. Firms that effectively implement strategic response mechanisms through innovative processes, differentiated products, expanded market reach, and collaborative partnerships are better positioned to achieve sustainable competitive advantage.
Recommendations: The study recommends that managers of telecommunication firms should prioritize strategic response to improve competitive advantage by adopting process automation, product development, market development, and strategic alliances. Telecommunication firms should invest in automation technologies, develop differentiated products through innovation, engage in market penetration and customer segmentation, and establish strategic partnerships to enhance their competitive positioning in dynamic business environments.
Keywords: Strategic response, competitive advantage, telecommunication firms, process automation, product development, market development, strategic alliances, Nairobi City County, Kenya
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