Influence of Technology Capability on Competitive Advantage of Sugar Companies in Western Kenya

Abstract

The Kenya sugar industry operate at an average capacity utilization of 50-60% due to technical limitations which make them uncompetitive in the COMESA region putting at stake 25% of the population that depends on the industry. The objective of the study was to determine the influence of technology capability on competitive advantage of sugar companies in Western Kenya and the hypothesis was that there is no significant relationship between technology capability and competitive advantage in sugar companies in Western Kenya. Descriptive and correlational research designs were used. The target population was 727 senior and middle level managers. A sample of 88 respondents was used in the study. Pilot testing of the questionnaire for validity and reliability was done using 10% of the 88 respondents giving 9 participants. Secondary data was obtained from KSB Year Book of Sugar Statistics and AFFA Year Book of Sugar Statistics reports. Out of 88 questionnaires sent out, 64 were received giving a response rate of 73%. Correlation (r=0.289, p=0.050, CL=95%) and hypothesis (X2 critical value 3.84< X2 test statistics 5.343) analyses established a positive relationship between technology capability and competitive advantage. The conclusion drawn from the study findings is that the companies under study have technology capability limitations. The study recommends that each firm pays more attention to proper technology capability management. Further research should be carried out on the factors influencing factory capacity utilization of the sugar industry in Kenya.