The ORGANIZATIONAL STRATEGY AND COMPETITIVE ADVANTAGE AMONG KENYA’S TOP 100 MEDIUM ENTERPRISES

Abstract

The pursuit of long-term success and sustainability in the business world hinges on establishing and maintaining a competitive advantage. Without it, businesses become vulnerable to intense market pressures and face a high risk of failure. This susceptibility is particularly evident among small and medium-sized enterprises (SMEs), which, despite their essential role in global economies, often struggle with higher failure rates as they navigate an increasingly competitive business landscape. Despite extensive research on the challenges faced by SMEs, a significant empirical gap remains in understanding the specific strategies successful firms use to achieve a competitive advantage. To fill this gap, this study examined how organizational strategy influences the competitive advantage of Kenya's top 100 medium-sized enterprises. Adopting a descriptive cross-sectional approach, the study collected data from 407 senior managers within the chosen firms using a census technique. An online survey was then distributed, yielding 311 completed responses. Data were analyzed using correlation and regression techniques with SPSS version 23. The results showed a statistically significant moderate positive correlation between organizational strategy and competitive advantage. Regression analysis further confirmed this relationship, revealing that organizational strategy has a statistically significant positive influence on competitive advantage. Specifically, the study found that focus and differentiation strategies had a stronger positive effect on competitive advantage compared to a cost leadership strategy. The findings imply that for SMEs in similar emerging markets, creating unique value propositions and tailoring products to specific customer segments is a critical determinant of competitive advantage. These strategies, however, must be adaptable and context-specific.