Dynamic capability and competitiveness of Safaricom Limited in Kenya

Abstract

In a fast-moving business environments open to global competition and characterized by dispersion in the geographical and organizational sources of innovation, firms have adopted aggressive competitive strategies to achieve congruence with changing environment in the robust telecommunication industry in Kenya. The study sought to establish the relationship between dynamic capability and the competitiveness of Safaricom limited. The study adopted a case study research design and was guided by the following objectives; to determine the various dynamic capability practices adopted by Safaricom limited, to determine the various types of competitiveness enjoyed by Safaricom limited Kenya, and to establish the relationship between dynamic capability and the competitiveness of Safaricom limited. The study utilized primary data which was collected through a face to face interview with the researcher. Five people were interviewed using an interview guide containing a set of questions. The interviewees included top level managers who are tasked with strategic planning and management at Safaricom Limited. Qualitative data was obtained from the interview guide and was analyzed using Content analysis. The study found out that Safaricom Limited has been applying Dynamic capability management practices in its operations. Safaricom has embraced the following dynamic capability practices: ability to assimilate and exploit new technology from the environment; recognition of the value of new information; Industry-Government-University collaboration; concurrent engineering; R&D department closeness to other functional areas; internal and external sourcing of technology; Vertical integration; establishment of inter-group relations and cross-functional teams; corporate culture orientation towards innovation; and top management support. The study concludes that Safaricom limited has successfully adopted and implemented diverse Dynamic capability practices and that, theses dynamic capability practices have positively affected the competitive advantage of the firm making it a market leader in Kenya and beyond. Given the fact that dynamic capability practices positively influences firm competitiveness, the study recommends that other firms within and outside the telecommunication industry embrace dynamic capability approaches in their operations. The study further recommends that telecommunication firms and other key stakeholders should establish strategies to increase awareness and information dissemination on dynamic capability models across all sectors in Kenya to enhance both firm and national competitiveness. The study was limited to the extent that the research findings might not be generalizable and applicable to other telecommunication companies in Kenya owing to the fact that different telecommunication companies use different operations strategies. The study suggests further research efforts to focus on identifying optimal dynamic capability practices and on the possibility of setting benchmarks