Strategic Orientation and Competitive Advantage of Pension Schemes in Kenya

Abstract

Most organizations are currently operating in a market that is uncertain and despite this challenge, they have to strive and achieve success in their operations through building their strategic position and distinct competitiveness. The goal of the study was to see if there was a link between strategic orientation and competitive advantage in Kenyan pension systems. The particular goal was to determine the individual and combined effects of market, technology, relationship, and entrepreneurial orientation on the competitiveness of select pension businesses in order to achieve the overall goal. The research was based on resource-based theory and Porter's framework, with a cross-sectional research methodology and a population of 31 pension firms that are members of the Retirement Benefits Authority (RBA). The primary data was gathered using a questionnaire as the primary instrument for data collection. Data analysis was achieved by computing inferential-regression analysis and descriptive statistics-mean, standard deviations, percentages and frequency distribution. From individual independent variable point of view, the study established that market orientation is critical dimension of strategic orientation and particularly in the alignment of strategic market strategies to meet customer specification. Secondly, the study found that strategic orientation is positively related with competitive advantage of pension schemes in Kenya as far as entrepreneurial orientation dimension is concerned. In order to enhance entrepreneurial strategies, the pension schemes produce new and unique products and services that are fashioned towards providing solution to customer needs and wants. The study findings with regard to technology orientation shows that there is a positive relationship between strategic orientation (through technology orientation) and competitive advantage of pension schemes in Kenya. In determination of the relationship between strategic orientation as a whole concept with sustainable competitive advantage, the study established as a result of strategic orientation, products of specific pension schemes are difficult to be copied by other schemes due to uniqueness and complexity of the products. Strategic orientation has also enabled the pension schemes to respond well to changes in the market and track changes in customer needs and wants. Collection of strategic information has also improved that enabling the firms to orient service production strategically. The inferential statistics computed shows that there is a strong and positive correlation (R= 0.892) between strategic orientation and competitiveness of pension schemes in Kenya. Effective implementation of strategic orientation strategies was found to cumulatively contribute to 79.5% (R2=0.795) influence on the competiveness of the pension firms.