Mediating Effect of Competitive Advantage on the Relationship Between E-commerce Capability and Performance: Empirical Evidence from Commercial Banks in Kenya
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Date
2019
Authors
Mutuku, Morrisson Kaunda
Muathe, Stephen M. A.
James, Rosemary
Journal Title
Journal ISSN
Volume Title
Publisher
IISTE
Abstract
Commercial banks operate in a very competitive environment. As such, e-commerce capability of e-commerce
has become a crucial tool for provision of competitive advantage and improved performance. However, the
mediating effect of competitive advantage on the relationship between e-commerce capability and performance is
still a key question. The study empirically analyzed the mediating effect of competitive advantage on the
relationship between e-commerce capability and performance of commercial banks in Kenya. Competitive
advantage was measured using customer satisfaction index. E-commerce capability was measured using four
dimensions of information capability, transaction capability, customization capability and back-end integration
capability while performance was measured using Return on Assets. The study was anchored on the Resource-
Based View Theory. The study used explanatory research design. A census of 43 commercial banks was taken;
data for performance was extracted for the financial year 2016/2017. Data for e-commerce capability was collected
from commercial banks websites. Data analysis was done using descriptive and inferential statistics. The study
findings revealed that competitive partially mediates the relationship between e-commerce capability and
performance of commercial banks in Kenya. recommends that managers of commercial banks should consider
delivering superior value to their customers though implementation of e-commerce capability.
Description
Research Article
Keywords
Citation
European Journal of Business and Management Vol.11, No.17, 2019