dc.description.abstract | The main purpose of this study was to determine the influence of external environmental
and managerial discretion on the relationship between Top Management Team (TMT)
characteristics and Sustainable Competitive Advantage (SCA) of Chinese Multinational
Corporations (CMCs) in Kenya. The empirical studies conducted on TMT characteristics
influence on SCA have produced mixed results some agreeing and others disagreeing, thus
these empirical studies are inconclusive. On the same line, there is no agreement on the
moderating influence of external environment on the relationship between TMT
characteristics and SCA. The intervening influence of managerial discretion on the
relationship between TMT characteristics and SCA is also not conclusive. Thus, there was
a need to establish that existence of these association between and among these variables.
The present study covered CMCs in Kenya and the broad objective of this study was
establish the influence external environmental and managerial discretion on the
relationship between TMT characteristics and SCA of CMCs in Kenya. From the broad
objective, the study specifically had four objectives, which were to assess the influence of
TMT characteristics on SCA; determine the influence of external environment on the
connection between TMT and SCA; assess the influence of TMT characteristics and
managerial discretion on SCA; and the joint influence of TMT characteristics, external
environment, managerial discretion on SCA of CMCs in Kenya. A cross-sectional design
was employed where data was gathered from 72 CMCs in Kenya using a semi-structured
questionnaire. The respondents in the study were top managers in 72 CMCs operating in
Kenya for more than three years. Two questionnaires were sent to each of the 72 CMCs
adding up to a total of 144 questionnaires. Both descriptive and inferential statistics was
employed to analyze the data and the formulated hypotheses were subjected to tests using
Chi squares. The analysis of the findings revealed that TMT characteristics had a
statistically significant influence on SCA of CMCs in Kenya. Similarly, on the moderating
influence of external environment on the relationship between TMT characteristics on SCA
and the intervening influence of managerial discretion on the relationship between TMT
characteristics on SCA were found statistically significant. Further, the study revealed that
when TMT characteristics, external environment and managerial discretion were combined
all together, they statistically influence SCA of CMCs in Kenya. The findings of the study
partially supported the agency, contingency, upper echelon and competitive advantage
theories, respectively. This study gives to contributions in terms of knowledge to strategic
management by influence of external environmental and managerial discretion on the
relationship between TMT characteristics and SCA. The respective managers are to adopt
the findings of the present study in ensuring that their firms embrace TMT characteristics
to interpret the environment properly and formulate appropriate strategies for SCA and
ensure that clear dimensions of managerial discretion are integrated in decision making
process. | en_US |