THE MEDIATING ROLE OF ORGANIZATIONAL COMPETENCES ON THE RELATIONSHIP BETWEEN RESOURCE ISOLATING MECHANISM AND SUSTAINABLE COMPETITIVE ADVANTAGE
Abstract
Creation and sustaining of competitive advantage can be realized if the firm is capable of converting resources into processes. This enables the firm to build capabilities and competences that enable it to gain competitive edge against rivals. Kenya commercial banks should therefore, put more emphasis on resources which have the potential of creating value to customers. The main purpose of this study was to establish the role of organizational competences on the relationship between resource isolating mechanism and sustain competitive advantage among commercial banks in Kenya. Descriptive and explanatory research design was employed in the study. The research targeted all the commercial banks in Kenya. Purposive sampling was used to select a sample of 160 respondents from the key departments of Finance, Sales and Marketing, Strategy and Operations of all the forty (40) commercial banks’ headquarters in Kenyan capital Nairobi. The data collection instrument used was semi-structured questionnaire. The variable characteristics were summarized using descriptive statistics. Agreement to the most frequent responses to the statements on the study variables ranged between moderate and high extent. Based on results of hypotheses testing, there exists a mediating effect of organizational competences on the relationship between resource isolating mechanism and sustainable competitive advantage.
Key Words: Resources, Isolating Mechanism, Competitive Advantage, Sustainable Competitive Advantage, Organizational Competences
CITATION: Ndegwa, P. W., Kilika, J. M., & Muathe, S. M. A. (2018). The mediating role of organizational competences on the relationship between resource isolating mechanism and sustainable competitive advantage . The Strategic Journal of Business & Change Management, 5(4), 2206 - 2221.
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.1015
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