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.