DYNAMIC CAPABILITIES AND COMPETITIVE ADVANTAGE OF COMMERCIAL BANKS IN KENYA
DYNAMIC CAPABILITIES AND COMPETITIVE ADVANTAGE OF COMMERCIAL BANKS IN KENYA
Eucabeth Aduwo - Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Jared Deya - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The current study sought to assess how dynamic capabilities influence competitive advantage of commercial banks in Kenya. The study centered on assessing the influence of marketing capability, knowledge management capability, technological capability and financial management capability on the competitive advantage of commercial banks in Kenya. Theories such as Marketing Mix Theory, Knowledge Based Theory, Technology Acceptance Theory, and Resource Based Theory were used to anchor the study. A descriptive survey research design was employed in the study. The target population comprised of all 42 licensed commercial banks operating in Kenya as outlined in the Bank Supervisory Report 2020. The unit of observation comprised of heads of research and development department, finance department, information technology department, and sales and marketing department from each commercial bank. Both primary and secondary data were used in the study where primary data was collected through a 5-point Likert scale questionnaires and secondary data was gathered through a secondary data collection sheet from audited financial reports. Both inferential and descriptive statistics were employed in analyzing the collected data. Both SPSS software and MS Excel were used in generating the statistics. The study results of the analysis were presented in form of tables and figures. The study established that marketing capability, knowledge management capability, technological capability, and financial management capability bears a positive and significant influence on competitive advantage of commercial banks in Kenya. This shown by beta values of 0.328, 0.256, 0.401, and 0.303 and significant values of 0.000, 0.006, 0.000, and 0.002 respectively. The results bears the implications that increasing each of the independent variable with one unit results to increase in the levels of competitive advantage of commercial banks with the respective beta values. The study recommended the need to enhance marketing capabilities, knowledge management capabilities, technological capabilities, and financial management capabilities by the commercial banks since the practices positively and significantly influences competitive advantage of the banks.
