Role of Organizational Resources on the Sustainability of Competitive Advantage in the Oil Industry in Kenya

Abstract

The study sought to establish the role played by specified organizational resources on the sustainability of competitive advantage in the Oil industry in Kenya. The study was anchored on the resource-based view theory of the firm. The general objective of the study was to establish the role of organizational resources on the sustainability of competitive advantage in the Oil industry in Kenya. The specific objectives of the study were to determine the role of Human Resources, Financial Resources, Plant & Equipment Resources, Brand and Heritage Resources; and to establish the Moderating Role of Government Policy on the Role of Organizational Resources on the sustainability of Competitive Advantage in the Oil industry in Kenya. The population constituted all the 63 licensed Oil Marketing Companies (OMCs) in Kenya. The appropriate study sample was identified through stratified random sampling. The study adopted both survey and correlational research design. Primary data was collected using a structured questionnaire while secondary data was collected through reviews of both theoretical and empirical literatures. Pilot testing was conducted to assess the questions’ validity and reliability of the data that was to be collected. The data obtained was analysed quantitatively using the Statistical Package for Social Scientists (SPSS). A multiple regression model with four variables was approximated to represent the relationship between the independent and dependent variables, while an error term in the model represented all other variables not considered in the study. Analysis of Variance (ANOVA) was carried out to test the significance of the overall model, while the t-test was used to determine the significance of the individual variables. The study established that human resources had a significant positive influence on sustainability of competitive advantage. Government policy played a negative moderating role between sustainability of competitive advantage and human resources. The study results showed that financial resources had a significant positive influence on sustainability of competitive advantage. Government policy had a negative moderating effect between sustainability of competitive advantage and financial resources. The study established that plant and equipment resources had a significant positive influence on sustainability of competitive advantage. Government policy played a positive moderating role between sustainability of competitive advantage and plant and equipment resources. The study results showed that brand and heritage resources had a significant positive influence on sustainability of competitive advantage. Government policy had a negative moderating effect between sustainability of competitive advantage and brand and heritage resources. From the study findings, the study recommended that, firms that want to gain and sustain competitive advantage should invest in their human resources through training and retention. The firms should strive to increase their profitability and working capital, invest in modern efficient and effective production facilities and systems. Firms should have strategically located head and branch offices. Firms should also ensure their brands are highly reputed by their customers and business partners. The study concluded that human resources, financial resources and plant & equipment resources all play significant positive roles on the sustainability of competitive advantage, however, brand & heritage resources contributed higher than any single organizational resource studied. The study also concluded that government policy played an insignificant moderating role in the role of organizational resources on the sustainability of competitive advantage in the oil industry in Kenya.