The Effect of Dynamic Capabilities on Organizational Competitive Advantage: a Case of Uber Taxi Kenya

Abstract

Dynamic capabilities have come to solve some of the complex challenges for a favorable environment and a sustainable competitive advantage. Dynamic capabilities emphasize on the practice in which organizations acquire, create and adapt wealth in a given environment change. Achieving a competitive advantage locus point and improving an organization's performance comparative to its entrants include two key objectives that business firms should aim to achieve. The objective of this study was to determine the effect of dynamic capabilities on organizational competitive advantage in Uber Taxi Kenya. This study employed the case study method. For the purpose of this study, the researcher used primary data. An interview guide with open-ended questions was used to interview strategic managers of Uber Taxi Company, Kenya. The qualitative data collected was analyzed using content analysis technique. The study found that Uber taxi Company uses adaptive capability in its operations. Uber Taxi Company has innovative capabilities where it has established new goods and markets by bringing into line strategic innovative orientation with advanced actions and methods such as mobile app. It was also found that the Company protects its customer base by developing a customer loyalty strategy and increasing the barriers to entry for competitors. The company has introduced a customer loyalty program that rewards customers for maintaining or increasing levels of business. Uber Taxi Company has adopted competitive strategies such as differentiation, focus and cost leadership. The study concluded that unpredictable business model operating within a highly regulated market is the company‟s major challenge. This is something that exposes Uber to ever-changing and potentially dangerous political influence. The study recommends that all the taxi industries in Kenya should start using mobile app where they will be able to reach a wide range of clients.