Role of Intangible Resources on the Competitiveness Enhancement of Telecommunication Companies in Rwanda

Abstract

The fundamental concentration of this research was to establish the role of intangible resources on the competitiveness enhancement of the telecommunication companies in Rwanda. Competitiveness of companies in the same industry must continue to be enhanced in order to thrive in a competitive environment. Competitiveness is more likely to spring from intangible rather than tangible resources. Intangible resources are less flexible, hard to accumulate, and not easily transferred, given the fact that they are mostly distinctive to firms. The Rwandan telecommunication companies have reasons to identify and employ their intangible resources in order to enhance their competitiveness. The specific objectives were to determine the role of intangible human capital, intangible structural capital and intangible relational capital in enhancing competitiveness of telecommunication companies in Rwanda and to establish the combined effect of intangible resource variables in enhancing competitiveness of telecommunication companies in Rwanda. The study also sought to determine the moderating effect of company age on the relationship between intangible resource and competitiveness enhancement. The study adopted a cross-sectional survey research design. The target population comprised the three telecommunication companies from which primary data was collected using questionnaires. The respondents comprised of Directors, Executives, Managers, Assistant Managers and Administrators. These categories of employees of the companies have the right knowledge concerning the study. Out of 655 employees of the three companies (RURA, 2014), the sample size of 248 was determined using Slovin’s formula, out of which 183 respondents from Airtel and Tigo properly filled and returned the questionnaire. Purposive sampling method was used to identify these categories of employees of the companies with the right knowledge concerning the study. The data were analysed using descriptive and inferential statistics. The findings of this study imply that there is a strong, positive, direct and significant relationship between intangible resources and competitiveness enhancement. Therefore, this study concludes that intangible human capital, intangible structural capital and intangible relational capital are good measures of intangible resources that can enhance competitiveness of telecom companies in Rwanda. The study recommends that intangible human capital, intangible structural capital and intangible relational capital should be positioned for the competitiveness enhancement of telecommunication companies in Rwanda. The enhanced competitiveness is underlined by a strong focus on their relationship with customers, suppliers and competitors, innovation and creativity, knowledgeable, skilled and experienced people, corporate reputation, systems and programs, research and development. This recommendation was directed to MTN, Tigo and Airtel Rwanda to review their intangible resource systems regularly and be more aware of the link between their intangible resources and competitiveness enhancement.