INFLUENCE OF STRATEGIC CAPABILITIES ON THE SUSTAINABLE COMPETITIVE ADVANTAGE OF SEED COMPANIES IN KENYA
Abstract
The study sought to determine the influence of strategic capabilities on the sustainable
competitive advantage of seed companies in Kenya. The specific objectives of the
study were: to determine the influence of strategic human resource capability,
strategic organizational learning capability, strategic marketing capability, and
strategic innovation capability on the sustainable competitive advantage of seed
companies in Kenya. The study investigated the moderating influence of generic
strategies on the relationship between strategic capabilities and the sustainable
competitive advantage of seed companies in Kenya. The study was grounded in
several theories: human capital theory, organizational learning theory, dynamic
capability theory, innovation diffusion theory, contingency theory, and competitive
advantage theory. A positivist approach was employed, as the researcher’s role was
confined to data collection and interpretation in an observable and verifiable manner.
The study utilized a descriptive research design and gathered quantitative data from
private seed firms in Kenya using a questionnaire. A multi-stage stratified sampling
technique was applied, resulting in 161 respondents from the top management,
finance, marketing, and operations departments. The collected data were then
analyzed using multiple regression analysis and a thorough hypothesis assessment.
The reliability analysis of the study showed high internal consistency, with a
Cronbach’s Alpha score of 0.841. The KMO scores ranged between 0.6 and 0.7, while
Bartlett's test showed all variables had significant intercorrelations (p < 0.05). The
investigation revealed that strategic capabilities had an explanatory power of about
35% on the SCA’s variation (R2= 0.353, p = 0.000). Notably, significant influences on
the SCA were realized from strategic human resource capability (β= -0.106), strategic
marketing capability (β= 0.425), strategic innovation capability (β= 0.239), strategic
organizational learning capability (β= 0.153), and generic strategies moderating effect
on strategic marketing capabilities (β= 0.153), on strategic innovation capability (β= -
0.044) and on strategic organizational learning capability (β= -0.077). Therefore, seed
companies in Kenya were recommended to take a holistic approach to strategic
management encompassing these strategic capabilities. They need to carefully
consider their generic strategies when aiming to leverage their strategic marketing
capability and strategic organizational learning capability to achieve SCA.