Organisational Resources and Sustainable Competitive Advantage
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ORGANISATIONAL RESOURCES AND SUSTAINABLE COMPETITIVE ADVANTAGE AMONGST SELECTED FIRMS IN THE AVIATION INDUSTRY IN KENYA GATAMA PATRICK GIKONYO D53/OL/CTY/26556/2015 A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE IN MASTER OF BUSINESS ADMINISTRATION OF KENYATTA UNIVERSITY (STRATEGIC MANAGEMENT) NOVEMBER, 2018 i DECLARATION This project is my original work and has not been presented for the award of a degree in any other university. Signature…………………………………….…………...Date………………………… Gatama Patrick Gikonyo D53/OL/CTY/26556/2015 Declaration by supervisor: I confirm that the work in this project was done by the candidate under my supervision. Signature…………………………………….…………...Date………………………… Prof. Jain, Mohinder K. Department of Business Administration School Of Business Kenyatta University ii DEDICATION I dedicate this research project to my loving family especially my dad Mr. Anthony Gatama who taught me the value of education and inculcated in me desire for knowledge. To my siblings Rose, Lucy, Peter, Stephen and Lydiah for their untiring support both financially and morally. Special dedication to my fiancée Milka Wambui for her unending commitment and inspiration. iii ACKNOWLEDGEMENT To the successful completion of this research project, I would like to thank my supervisor Prof. Jain, Mohinder K. for the guidance, support and commitment. I am greatly indebted to Eng. James Nderitu of KCAA for his insight into the aviation industry and the world of strategic management. My heartfelt appreciation to my fiancée Milka Wambui for her encouragement. Finally, I would like to thank my dad and siblings for the moral and financial support they offered me in this research journey. God bless you for your prayers and encouragement. iv TABLE OF CONTENTS DECLARATION ................................................................................................................................. ii DEDICATION .................................................................................................................................... iii ACKNOWLEDGEMENT .................................................................................................................. iv TABLE OF CONTENTS .................................................................................................................... v LIST OF FIGURES .......................................................................................................................... viii LIST OF TABLES .............................................................................................................................. ix OPERATIONAL DEFINITION OF TERMS ................................................................................... x ABBREVIATIONS AND ACRONYMS ........................................................................................... xi ABSTRACT ....................................................................................................................................... xii CHAPTER ONE: INTRODUCTION ................................................................................................ 1 1.1 Background of the Study ............................................................................................................. 1 1.1.1 Sustainable Competitive Advantage ............................................................................... 2 1.1.2 Organisational Resources ...................................................................................................... 4 1.1.3 Aviation Industry in Kenya ................................................................................................... 5 1.2 Statement of the Problem ............................................................................................................. 6 1.3 Research Objectives ..................................................................................................................... 8 1.3.1 General Objective ................................................................................................................. 8 1.3.2 Specific Objectives ............................................................................................................... 8 1.4 Research Questions ...................................................................................................................... 9 1.5 Significance of the Study ............................................................................................................. 9 1.6 Scope of the Study ..................................................................................................................... 10 1.7 Limitations of the Study............................................................................................................. 10 1.8 Organization of the Study .......................................................................................................... 11 CHAPTER TWO: LITERATURE REVIEW ................................................................................. 12 2.1 Introduction ............................................................................................................................... 12 2.2 Theoretical Literature Review.................................................................................................... 12 2.2.1 Market Based View Theory ................................................................................................ 12 2.2.2 Theory of National Advantage ............................................................................................ 15 2.2.3 Resource Based View (RBV) Theory ................................................................................. 17 2.3 Empirical Literature Review ...................................................................................................... 18 2.3.1 Infrastructure Resources and Sustainable Competitive advantage ...................................... 18 2.3.2 Human Capital Resources and Sustainable Competitive advantage .................................... 20 2.3.3 Knowledge Resources and Sustainable Competitive advantage .......................................... 21 2.3.4 Organisational Resources and Sustainable Competitive Advantage .................................... 23 v 2.5 Conceptual Framework .............................................................................................................. 26 CHAPTER THREE: RESEARCH METHODOLOGY ................................................................. 27 3.1 Introduction ............................................................................................................................... 27 3.2 Research Design ........................................................................................................................ 27 3.3 Target Population ....................................................................................................................... 27 3.4 Sample Design ........................................................................................................................... 28 3.5 Data Collection Instruments....................................................................................................... 28 3.5.1 Pilot Study .......................................................................................................................... 29 3.5.2 Reliability ........................................................................................................................... 29 3.5.3 Validity ............................................................................................................................... 30 3.6 Data Collection Procedure ......................................................................................................... 30 3.7 Data Analysis and Presentation .................................................................................................. 31 3.8 Ethical Considerations. .............................................................................................................. 32 CHAPTER FOUR: RESEARCH FINDINGS AND DISCUSSION ............................................... 33 4.1 Introduction ............................................................................................................................... 33 4.2 Analysis of Response rate .......................................................................................................... 33 4.3 Demographic Characteristics of Respondents ............................................................................ 34 4.3.1 Gender Distribution of Respondents ................................................................................... 34 4.3.2 Work Experience ................................................................................................................ 35 4.3.3 Level of Education of the Respondents ............................................................................... 35 4.3.4 Age of the Respondents ...................................................................................................... 36 4.4 Descriptive Statistics .................................................................................................................. 37 4.4.1 Infrastructure Resources ..................................................................................................... 37 4.4.2 Human Capital Resources ..................................................................................................