Effect of Digital Strategy on Transient Competitive Advantages of Large-scale Manufacturing Companies in Kenya.

Abstract

This paper examines the influence of digital strategy on transient competitive advantages of large-scale manufacturing companies in Kenya. The research is driven by the observation that the manufacturing sector in Kenya faces challenges in maintaining a competitive edge, as reflected in declining growth rates. The study employed correlational research design and targeted a subset of 857 large-scale manufacturing firms in Kenya, identified based on criteria from the International Labour Organization and Kenya Association of Manufacturers. These firms constituted the unit of analysis. The study employed Pearson Correlation analysis and bivariate regression analysis to examine the relationship between the variables. The key finding of the study is that there is a strong positive correlation (r=0.758, p-value = 0.000) between overall digital strategy and transient competitive advantage in large-scale manufacturing firms in Kenya. The regression analysis further supports this, with the model being statistically significant (F-test p-value = 0.000) and explaining 57.45% of the variation in transient competitive advantages. The positive and significant coefficient (β = 0.841, p-value = 0.001) for digital strategy suggests that an increase in digital strategies is associated with a significant increase in transient competitive advantage. The study recommends creating a supportive policy environment for digital transformation initiatives, offering incentives, grants, and tax breaks for firms investing in digital technologies. Collaboration between policymakers and industry associations is crucial for promoting digital skills development programs. At the organizational level, clear digital policies, workforce training programs, and strategic alignment of digital marketing efforts are recommended for firms aiming to fully leverage digital strategies and secure transient competitive advantages.