The Moderating Role of External Environment on the Relationship between Resource Isolating Mechanism and Sustainable Competitive Advantage

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Date
2019Author
Ndegwa, Purity W.
Kilika, James M.
Muathe, Stephen M. A.
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Dynamic changes in the firm’s external environment influence the future direction
of the firm. The operations of the firm are affected by the striking advances in
globalization such as shifts in technology, stiff competition among business entities
and new entrances within an industry. The firms including commercial banks in Kenya
should therefore, have the ability to predict future trends in the external environment
for survival. The main purpose of this study was to establish the moderating role of
external environment 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 Nairobi, Kenya.
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, external environment have no
moderating effect on the relationship between resource isolating mechanism and
sustainable competitive advantage.