The Mediating Role of Entreprenuarial Orientation on the Relationship between First Mover Strategy and Performance of Selected Telecommunication Application Service Firms in Kenya
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Date
2022-02
Authors
Ngugi, Rahab
Muchemi, Ann
Maina, Samuel
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Abstract
In today’s world, economic development is promoted through modern telecommunication
facilities that ensure rapid transmission of information. Rapid advancement and expansion of
network infrastructure and internet technologies has led to growth of telecommunication
application service firms. However dynamics in the telecommunication sector is rapidly
changing as a result application service firms are experiencing declining performance. Rapid
growth in the sector has increased competition leading to loss of customers, firm reputation and
declining profitability. Developing a strategy that can cope in a chaotic environment is very
critical for application service firms. The first mover strategy is a phenomenon adopted by first
movers where competitive advantage can be created and sustained. Entrepreneurial orientation
enhances the ability of first movers to discover and exploit opportunities that emerge in a
changing environment. This study sought to investigate first mover strategy and performance of
selected telecommunication application service firms in Kenya and the mediating role of
entrepreneurial orientation. The study was grounded on the game theory, goal setting theory
and entrepreneurial orientation theory. The target population was 21 selected application
service firms. Primary data was collected using semi-structured questionnaires, while secondary
data was collected from Communication Authority (CA). Descriptive and inferential statistics
were used to analyze quantitative data. Hypotheses testing was conducted at 5% level of
significance using P-value to assess significance. The study findings revealed that the indicators
of first mover strategy which included barrier to entry strategy, quality improvement strategy and
niche market penetration strategy have a positive and significant effect on performance. In
additionally, entrepreneurial orientation partially mediates the relationship between first mover
strategy and performance. Therefore firms in the sector should consider to adopt and leverage
on first mover strategy to improve on firm performance.
Description
research article
Keywords
First Mover Strategy, Barrier to Entry Strategy, Quality Improvement Strategy, Mass Market Strategy, Niche Market Penetration Strategy, Entrepreneurial Orientation, Firm Performance, Telecommunication Application Service Firms
Citation
Rahab, N., Ann, M., & Samuel, M. (2022). The Mediating Role of Entreprenuarial Orientation on the Relationship Between First Mover Strategy and Performance of Selected Telecommunication Application Service Firms in Kenya.