Effect Of Intangible Resources On Firm’s Competitive Advantage In The Telecommunication Industry In Kenya

Abstract

The study sought to determine the effect of intangible resources on a firm’s competitive advantage in the telecommunications industry in Kenya. The specific objectives were to evaluate the influence of intellectual property, goodwill, intellectual capital as well as corporate culture on the competitive advantage of telecommunication firms in Kenya. The study utilized an explanatory research design. The study focused on four telecommunication companies in Kenya, which included Safaricom, Airtel, Finserve, and Telkom. The target population was therefore 153 staff working in enterprise business, finance, human resource, and corporate affairs departments in telecommunication companies in Kenya. Slovin's Formula was employed to determine the sample size. This study used stratified random sampling in the selection of the sample size from the target population. The study used primary data, which was collected by the use of semi-structured questionnaires. A pilot test was conducted to test the validity and reliability of the research instrument. The semi-structured questionnaire produced both quantitative and qualitative data. The qualitative data were analyzed using content analysis, and the findings were presented in a narrative form. With the help of SPSS version 24, quantitative data was analyzed using descriptive and inferential statistics. Descriptive statistics comprised of frequency distribution, mean, percentages, and standard deviation. Inferential statistics including correlation as well as multivariate regression analysis then followed. Tables and figures (bar charts as well as pie charts) were employed to present the results. The study found that intellectual property has a positive and significant effect on the competitive advantage of Kenya's telecommunications industry. Moreover, the study found that goodwill has a positive and significant effect on the competitive advantage of Kenya's telecommunications industry. Further, the study found that intellectual capital has a positive and significant effect on the competitive advantage of Kenya's telecommunications industry. The study also found that corporate culture has a positive and significant effect on the competitive advantage of Kenya's telecommunications industry. This study, therefore, recommends that the management of Kenya's telecommunications industry should motivate the employees by rewarding them, acknowledging their achievements, sharing positive feedback, offering flexible scheduling, and providing a conducive working environment to help strengthen the competitive advantage of the organizations. In addition, the management should strive towards recruiting as well as grooming the best team as well as enhance the employees’ skills by conducting regular training, coaching, mentorship, and workshops to get a competitive advantage in the organization. The management should also invest in their employees through promotion, involving employees in writing a mission statement, conducting training programs, motivating the employees through rewards, and creating a feedback culture. In addition, the management should include the invention of products and services in their patents to stop others from copying, manufacturing, selling, or importing their invention without their permission.