STRATEGIC INPUTS OF COMPETITIVE INTELLIGENCE AND COMPETITIVE ADVANTAGE AMONG COMMERCIAL BANKS, IN KENYA
DOI:
https://doi.org/10.47941/ajss.807Abstract
Purpose: This study sought to determine the effect of strategic inputs of competitive intelligence on competitive advantage among commercial banks in Kenya. Specifically, the study sought to determine the effect of market place opportunities, competitor threats, competitive risks, identifying and hedging against key vulnerabilities and verifying core assumptions on competitive advantage among commercial banks in Kenya.
Methodology: A descriptive and explanatory research design was used in this study and primary data was collected at the head office of each bank which are all found in Nairobi City. Primary data was collected using a semi-structured questionnaire. Data was analyzed using both descriptive and inferential statistics. Analysis was done with the assistance of SPSS computer packages.
Results: The results of the regression analysis found the coefficient of determination is R2= 0.847; indicating that 84.7% variation in competitive advantage among commercial banks in Kenya is explained by the strategic inputs of competitive intelligence. The Analysis of the Variance (ANOVA) value of F calculated was 27.602; this shows that the overall regression model was significant. The study established that all the five variables: marketplace opportunities, competitor threats, competitive risks, key vulnerabilities and core assumptions; the strategic inputs of competitive intelligence have a significant effect on the competitive advantage among commercial banks in Kenya.
Unique Contribution to Theory, Practice and Policy: The study recommends to the management of commercial banks to improve and strengthen competitive intelligence activities which would help banks to quickly identify market place opportunities before they become obvious. Competitor threats should be discovered early to enable strategies to ameliorate or neutralize them be developed. Top management team should use competitive intelligence develop insights which can be transformed into an array of pre-emptive and responsive actions that enable the bank to be avert possible risks in the business environment. Bank managers should increase the frequency and scope of competitive intelligence activities that would enable them obtain critical information for rapid identification and assessment of key vulnerabilities so that they can hedge the banks against attack by rivals. The banks need to be continuously monitoring and verifying the core assumptions on which current strategies are grounded.
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