Organizational Resources And Competitive Advantage Of Airline Companies Operating In Kenya

ABSTRACT 

The aircraft business assumes a big role in Kenya's economic advancement. The airline business catalyzes different parts of the economy, for example, the travel industry, assembling, cultivation and the hotel industries, which contribute billions of shillings to Kenya's economy. Competition globally is progressively making carriers working at JKIA increasingly competitive to the degree that Airline organizations are hauling out from working at JKIA, given a case of Virgin Atlantic Airlines exit in 2012. Furthermore, in the competitive global economy, there is need to strengthen Financial resources, ICT resources and Human resources to ensure stable, reliable and efficient operations of the airline companies operating in Kenya. The general objective of this research was to evaluate organizational resources and competitive advantage of airline companies operating in Kenya. This study was guided by the following specific objectives: to determine the influence of financial resources on the competitive advantage in airline companies operating in Kenya, to establish the effect of ICT resources on the competitive advantage in airline companies operating in Kenya and to investigate how influence of human resources influence competitive advantage in airline companies operating in Kenya. This study was guided by competitive advantage theory, resource-based view theory and diffusion theory. The study used descriptive design because it enhanced systematic description that is as accurate, valid and reliable as possible regarding the responses. The study was limited to managerial employees of the Airline Companies in Kenya. The target population of 40 managers based in Kenya, and utilized a sample size of 29 managers through convenience sampling. The study used semi-structured questionnaires as the research instrument to collect data. To ensure content validity, the questionnaire was subjected to thorough scrutiny by supervisors overseeing the study. Cronbach’s alpha was used to test the reliability of the measures in the questionnaire where all the statements in the questionnaire attracted Cronbach alpha of 0.7 and above implying that the questionnaire was reliable. Results indicated that financial resources significantly and positively influence competitive advantage of airline companies operating in Kenya (β = 0.870; t = 4.750; p < 0.05). Further, ICT resources have a significant and a positive effect on the competitive advantage of airline companies operating in Kenya (β = 0.675; t = 1.720; p < 0.05). Human resources had significant and a positive effect on the competitive advantage of airline companies operating in Kenya (β = 0.575; t = 1.645; p < 0.05). The study concluded that financial resources improve competitive advantage of airline companies operating in Kenya. It was also concluded that ICT resources is effective enough to enable the improvement in competitive advantage of airline companies. The study concluded that human resources are essential right from customer service at the airline industry, management, and in the operation of the actual plane by crew members. The study concluded that financial resources, ICT resources and human resources significantly and positively influenced competitive advantage of airline companies operating in Kenya. Since a lot financial resources are required in operating an airline firm, the study recommends for the need to prudently use the available resources and allocation should be based on business objectives. Airline may need to invest in relevant information technologies that support the needs of the airline firm. The study recommends for periodic refresher training, workshop and seminars for employees at the airport with aim of enhancing their skills in their respective fields.