RESPONSE STRATEGIES AND COMPETITIVE ADVANTAGE IN REAL ESTATES FIRMS IN KENYA, CASE STUDY OF KIAMBU COUNTY

Gabriel Ng’ang’a Kamau, Dr. Susan Naikuru

Abstract


Some of the challenges faced by most of the SMEs include high market competition, high operational cost, and inadequacy of resources among others. For a firm, considering the competitive advantage would be very critical as it determines the firm’s profitability during the changes in the market forces. The study aimed to investigate the effect of innovation strategy, risk management strategy on the competitive advantage of real estate firms in Kiambu County, Kenya. The technological acceptance model, the stakeholder theory and the resource-based theory provided anchorage to the study. The study adopted a descriptive survey research design targeting 1,524 registered real estate firms in Kiambu County as at 2022 and multistage sampling technique was adopted to sample 317 respondents as the sample size. Primary data was collected with the aid of the questionnaire that had undergone validation to determine reliability and validity. The analysis of the gathered data was done through Statistical Package for Social Sciences (SPSS) guided by means and standard deviation as well as correlation and regression analysis and presented through tables and figures. The findings indicated that innovation strategy (p<0.05) and risk management strategy (p<0.05) had significant effect on the competitive advantage of real estate firms in Kiambu County, Kenya. The study concluded that response strategies are significant predictors of competitive advantage of the firm. The study recommended that different innovation strategies including organizational innovation, marketing innovation, technological innovation and process as well as product innovation strategies can be adopted by these firms in order to sustain their competitive edges. The managers working with real estate firms in Kiambu County should heavily invest in portfolio diversification since doing so would minimize their exposure to risks and thus allowing them to maximize the returns on their investments hence gaining competitive advantage. 

Key words: Response Strategies, Innovation, Risk Management, Competitive Advantage, Real Estate

Full Text:

PDF

References


Akeem, L. B. (2017). Effect of cost control and cost reduction techniques in organizational performance. International business and management, 14(3), 19-26.

Alfawaire, F., & Atan, T. (2021). The Effect of Strategic Human Resource and Knowledge Management on Sustainable Competitive Advantages at Jordanian Universities: The Mediating Role of Organizational Innovation. Sustainability, 13(15), 8445.

Ali, B. J., & Anwar, G. (2021). Business strategy: The influence of Strategic Competitiveness on competitive advantage. International Journal of Electrical, Electronics and Computers, 6(2).

Alshumrani, S., Baird, K., & Munir, R. (2022). Management innovation: the influence of institutional pressures and the impact on competitive advantage. International Journal of Manpower, 43(5), 1204-1220.

Barney, J. B., & Harrison, J. S. (2020). Stakeholder theory at the crossroads. Business & Society, 59(2), 203-212.

Brasli?a, L., V?ksne, K., & Batraga, A. (2014). Comparative analysis of innovation process approaches. New Challenges of Economic and Business Development–2014, 19.

Darmawan, D., & Grenier, E. (2021). Competitive Advantage and Service Marketing Mix. Journal of Social Science Studies (JOS3), 1(2), 75-80.

Davis, F. D., Bogozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35, 982-1003.

Dima, A. M., & Orzea, I. (2020). Risk management in banking. AcademyPublish. org.

Freeman, R. E., Dmytriyev, S. D., & Phillips, R. A. (2021). Stakeholder theory and the resource-based view of the firm. Journal of Management, 47(7), 1757-1770.

Funsho Tajudeen Kolapo, Joseph Oluseye Mokuolu, Samuel Obafemi Dada and Adeola Oluwakemi Adejayan (2021). Strategic marketing innovation and bank performance in Nigeria. Innovative Marketing , 17(1), 120-129. doi:10.21511/im.17(1).2021.10

Gachimu, D. G. & Njuguna, R. (2017). Strategic positioning and financial performance of commercial banks in Kenya. International Academic Journal of Human Resource and Business Administration, 2(4), 240-255

Galbreath, J. (2005). Which resources matter the most to firm success? An exploratory study of resource-based theory. Technovation, 25(9), 979-987.

Gupta, V. K., Huang, R., & Yayla, A. A. (2011). Social capital, collective transformational leadership, and performance: A resource-based view of self-managed teams. Journal of managerial issues, 31-45.

Hamadamin, H. H., & Atan, T. (2019). The impact of strategic human resource management practices on competitive advantage sustainability: The mediation of human capital development and employee commitment. Sustainability, 11(20), 5782.

Hong, E., Lee, I. H. I., & Makino, S. (2019). Outbound foreign direct investment (FDI) motivation and domestic employment by multinational enterprises (MNEs). Journal of International Management, 25(2), 100657.

Janet, M. & Ngugi, K . (2017). Influence of Entrepreneurial Marketing on the Growth of SMEs In Kiambu Town-CBD, Kenya. European Journal of Business Management, 1(11), 361-377.

Kim, D., & Francis, J. C. (2013). Modern portfolio theory: Foundations, analysis, and new developments. John Wiley & Sons.

Kiprotich, E., Gachunga, H., & Bonke, R. (2023). Moderating effect of Innovation on the Relationship between Customer Focus Strategy and Performance of Manufacturing Firms in Kenya. International Journal of Strategic Management, 2(1), 1–21.

Kwak, D. W., Seo, Y. J., & Mason, R. (2018). Investigating the relationship between supply chain Innovation, risk management capabilities and competitive advantage in global supply chains. International Journal of Operations & Production Management.

Muteti, S. R. (2019). Relationship between financial risk management and financial performance of commercial banks in Kenya (Doctoral dissertation).

Njagi, C. N. (2020). Influence of Stakeholder’s Involvement in the Performance of Public Projects: A Case Study of Moi Stadium in Embu County Kenya (Doctoral dissertation, University of Nairobi).

Teresi, J. A., Yu, X., Stewart, A. L., & Hays, R. D. (2022). Guidelines for designing and evaluating feasibility pilot studies. Medical care, 60(1), 95-103.

Tien, N. H. (2019). Comparative Analysis of Multi-domestic Strategy of P&G and Unilever Corporation. International journal of foreign trade and international business, 1(1), 5-8.

Vaclavik, M., & Jablonsky, J. (2012). Revisions of modern portfolio theory optimization model. Central European journal of operations research, 20(3).

Yasa, N., Giantari, I. G. A. K., Setini, M., & Rahmayanti, P. J. M. S. L. (2020). The role of competitive advantage in mediating the effect of promotional strategy on marketing performance. Management Science Letters, 10(12), 2845-2848.


Refbacks

  • There are currently no refbacks.