Effect of Competitive Advantage on the Relationship between Strategic Leadership and Performance of International Non-Governmental Organizations in Kenya
DOI:
https://doi.org/10.53819/81018102t2015Abstract
In developing countries, International Non-Governmental Organizations (INGOs) have taken active and complementary roles in sustainable human development. Despite the role of INGOs in development, the issues of sustainability, availability of funds, and supportive leadership have remained a major challenge in developing countries. The concept of competitive advantage has been recognized as a central building block in strategic management and an important precedent to organizational performance. Competitive advantage is a deliberate effort by the organization to align its internal conditions and capabilities with changes in the external environment. This study sought to establish the mediating effect of competitive advantage on the relationship between strategic leadership and performance of international non-governmental organizations in Kenya The study was anchored on strategic leadership theory, upper echelons theory and resource-based view theories. For methodology, descriptive cross-sectional survey design covering 277 respondents was adopted. Semi structured questionnaires were used to collect data. The study findings indicated that data collection tool/questionnaire was reliable as Cronbach alpha was greater than 0.7 for all variables. The results indicated a significant mediating effect of competitive advantage on the relationship between strategic leadership and performance of international non-governmental organizations in Kenya. This means that the influence of strategic leadership on performance is indirect through competitive advantage. The study concluded that both competitive advantage and strategic leadership concurrently influence organizational performance positively. It is recommended that international non-governmental organization must be able to identify their competitive advantage.
Keywords: Strategic Leadership, Competitive Advantage, Performance, International Non-Governmental Organizations & Kenya.
References
Amit, R., Schoemaker, P.J.H. (1993). Strategic assets and organizational rents, Strategic Management Journal, 14(1), 33-46. https://doi.org/10.1002/smj.4250140105
Barney, J. (1991). Firm resources and sustained competitive advantage, Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 5, 1173-1182. https://doi.org/10.1037/0022- 3514.51.6.1173. https://doi.org/10.1037/0022-3514.51.6.1173
Buichi, U.S. (1994). Measuring your way to profit, management decision. Journal of Management. 32(6), 16-24. https://doi.org/10.1108/00251749410065088
Cegliński, P. (2016a), “The use of strategic marketing management tools in contemporary enterprises”, Marketing i Zarządzanie, No. 5 (46), pp. 9–16. https://doi.org/10.18276/miz.2016.46-01
Daft, R. L. & Marcic, D. (2013). Management: The new workplace. South-Western; Cengage Learning: Australia.
Deeboonmee, W. & Ariratana, W. (2014). Relationship between strategic leadership and school effectiveness, Procedia-Social and Behavioural Sciences, 112(Supplement C), 982-985. https://doi.org/10.1016/j.sbspro.2014.01.1258
Gomes, A. F., Jabbour, A., Adriana, B. N., & Charbel, J.C. (2011). Measuring supply chain management practices. Measuring Business Excellence, 15(2), 1-20. https://doi.org/10.1108/13683041111131592
Grant, R. M. (2010), Contemporary Strategy Analysis, John Wiley & Sons Ltd., New York.
Grant, R.M., & Jordan, J. (2012). Foundations of Strategy. London: John Wiley & Sons Ltd.
Haffer, R. (2003), Systemy zarządzania jakością w budowaniu przewag konkurencyjnych przedsiębiorstw, Wydawnictwo Uniwersytetu Mikołaja Kopernika, Toruń.
Harrison, F.E. & Pelletier, A.M. (1997). CEO perceptions of strategic leadership. Journal of Managerial Issues, 9(3), 299-317
Hart, L.S. (1995). A natural resource-based view of the firm. The Academy of Management Review, 20(4), 986-1014. https://doi.org/10.2307/258963
Hitt, M.A., Ireland, R.D. & Hoskisson, R.E. (2012). Strategic Management Cases: Competitiveness and Globalization. Cengage Learning
House, R.J. (1971). A path goal theory of leadership effectiveness. Administrative Science Quarterly, 16(30, 321-339. https://doi.org/10.2307/2391905
Huff, A. S., Floyd, S. W., Sherman, H. D., Terjesen, S. (2009), Strategic Management.
Johnson, G., Scholes, K.& Whittington, R. (2008). Exploring Corporate Strategy. Prentice Hall.
Jones, G. (2013). Organizational Theory, Design, and Change, (7th ed.), Pearson, Harlow, England.
Kaplan, R.S., & Norton, D. P. (1996). Strategic learning and the balanced scorecard, Strategy & Leadership, 24(5), 18-24. https://doi.org/10.1108/eb054566
Mugenda, O.M., & Mugenda, A.G. (2003). Research Methods. Qualitative and Quantitative Approaches, Nairobi: Act Press.
Neely, A. (2005). The evolution of performance measurement research: developments in the last decade and a research agenda for the next. International Journal of Operations and Production Management, 25(12), 12-64. https://doi.org/10.1108/01443570510633648
Neely, A., Gregory, M., & Platts, K. (1995). Performance measurement system design: a literature review and research agenda. International Journal of Operations and Productions Management, 15(4), 80-116. https://doi.org/10.1108/01443579510083622
Okorley, E. L., & Nkrumah, E. E. (2012). Organizational factors influencing sustainability of local non-governmental organizations: Lessons from a Ghanaian context. International Journal of Social Economics, 39(5), 330-341. https://doi.org/10.1108/03068291211214190
Pearce, J., & Robinson, G. (2011). Strategic Management: Formulation, Implementation and Control (12th Ed.). NY: Irwin/McGraw-Hill.
Porter M. E. (1985); Competitive Advantage: creating and sustaining superior performance, the Free Press, New York.
Powell, C.T. (2001). Competitive advantage: Logical and philosophical considerations, Strategic Management Journal, 22(9), 875-888. https://doi.org/10.1002/smj.173
Quigley, T. J., & Graffin, S.D. (2017). Reaffirming the CEO effect is significant and much larger than chance: A comment on Fitza. Strategic Management Journal, 38 (3), 793–801. https://doi.org/10.1002/smj.2503
Slovin, E. (1960). Slovin's formula for sampling technique. Retrieved on February, 13, 2013.
Un-Habitat. (2016). Planning sustainable cities: global report on human settlements 2009.
Routledge. https://doi.org/10.4324/9781315541389
Wang, H.-L. (2014), “Theories for competitive advantage”, in: Hasan, H. (Ed.), Being Practical with Theory: A Window into Business Research, Wollongong, Australia: THEORI, Australia, pp. 33–43.
Wassenhove, LN. (2011). From Preparedness to Partnerships: Case Study Research on Humanitarian Logistics. International Transactions in Operational Research, 16 (5), 549- 559. https://doi.org/10.1111/j.1475 3995.2009.00697.x
Wernerfelt, B. (1984). “A resource-based view of the firm.” Strategic Management Journal, 5, pp. 171-180. https://doi.org/10.1002/smj.4250050207
Yukl, G. (2010). Leadership in Organization, New Jersey: Pearson
