Influence of Strategic Capabilities on Competitive Advantage of the Motor Vehicle Assemblers in Kenya: a Case Study of Isuzu East Africa

Abstract

The main goal of the research was to establish the influence of strategic capabilities on competitive advantage of motor vehicle assemblers in Kenya. Anchored on Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), a case study research design was adopted and Isuzu East Africa was identified as the population of the study. Interview guide research instruments were used to collect data from the managerial staff who were the target population. The data collected were subjected to analysis technique to draw inferences from the responses obtained from the eight-managerial staff interviewed. The interview questions sought to obtain information on strategic capabilities possessed by Isuzu East Africa and how these strategies enhanced the competitive advantage of the company. Findings from the study demonstrated that Isuzu East Africa possess strategic capabilities in key functional areas including product innovation, finance and human resources. The study affirmed that the company is leveraging on these competencies to enhance its competitive advantage in the Kenyan motor vehicle assembling industry. The strategic capabilities in product innovation for instance have seen the company develop good reputation among target customers for the performance and utility of its products that are well suited for the Kenyan market, while the strategic capabilities in finance and human resources have also helped the company entrench its competitive position in the Kenyan automobile industry as it can easily respond to changes in the business environment. Conclusively and by basing on the outcome of the study, it is evident that motor vehicle assemblers in Kenya face stiff market competition and therefore are recommended to develop strategic capabilities in product innovation, finance and human resource for them to attain competitive advantage in the Kenyan automobile industry.