Leagile Strategy, Strategic Partnership, Firm Innovation and Competitive Advantage of Construction Companies Supply Chains in Nairobi City County, Kenya.

Abstract

The broad aim of this research was to measure the influence of leagile strategy, strategic partnership, and firm innovation on competitive advantage of construction companies’ supply chains in Nairobi City County, Kenya. Four specific goals were articulated: to determine the influence of leagile strategy on competitive advantage; to assess the moderating influence of strategic partnership on the relationship between leagile strategy and competitive advantage; to explore the intervening influence of firm innovation on the relationship between leagile strategy and competitive advantage; to determine the joint influence of leagile strategy, strategic partnership and firm innovation on competitive advantage. The research employed a cross-sectional descriptive survey methodology. Stratified sampling procedure was utilized to obtain a sample size of 323 construction companies from the entire population of 4,015. Information was gathered from 260 construction companies via questionnaire achieving a response rate of 80.50 percent. Statistical package for social sciences (SPSS) version 22 was utilized for information processing to produce both descriptive, and inferential statistics. Correlation, regression analyses, and the interaction term for the moderating effect were exploited to determine the hypotheses. Decisions were made at 5% significance level. It was discovered that leagile strategy has a significant influence on competitive advantage. Results showed strategic partnership has no moderating influence on the relationship between leagile strategy, and competitive advantage. It was further revealed that strategic partnership has a direct effect on competitive advantage as though it was an independent variable. It was established that firm innovation has significant partial intervening influence on the relationship between leagile strategy, and competitive advantage. Results also showed a significant joint influence of leagile strategy, strategic partnership, and firm innovation on competitive advantage. Conclusions were made that there are supplementary sources of competitive advantage besides leagile strategy, strategic partnership, and firm innovation in construction companies’ supply chains in Nairobi City County. This research has added to theory development by ratifying the suppositions of dynamic capabilities, network, and institutional theories towards achievement of competitive advantages. Furthermore, it has supplemented knowledge in strategic management about the influence of strategic partnership, and firm innovation on the relationship between leagile strategy, and competitive advantage. These findings are useful to policymakers who may use it as a basis for organizational and sector reforms. Also in the formulation, and implementation of policies and legislation which lead to change, competitiveness, and survival. Practitioners are guided on the aspects of leagile strategy, strategic partnership, and firm innovation which can lead to competitive advantages as well as those which help in alleviating the myriad organizational problems. Company executives are directed to focus on continuous sensing to recognize opportunities, and swiftly react to the shifting competitive environments. The occurrence of COVID-19 pandemic was a limitation to this research, especially the restrictions placed on the access of business premises and staff. Further research is recommended to include other conceptual variables which may have influence on competitive advantage. Future research should expand the context to include transportation companies as well as other industries to determine if the findings of this study are replicable.