Effects of Information and Communication Technology (ICT) on Sustained Competitive Advantage in the Banking Sector (Kenya)
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The link between Information and Communication Technology (ICT) and Sustainable Competitive Advantage (SCA) has continued to take a central place in strategy research and scholarly debates. The perspectives through which ICT has been studied in organizational settings has appeared to strongly emphasize it as a powerful competitive weapon for sustainable competitive advantage, yet the extent to which it has contributed to the sustainability of the competitive advantage has not been established. The study aimed at examining the effect of ICT investments on SCA of Kenya Commercial banks by
determining the extent to which the banks have invested on ICT and find out the extent to which ICT assets and ICT capabilities have each contributed to sustainable competitive advantage of the banks. The study is important to the banking industry since it will guide the banks’ decision makers on the ICT aspects to invest in to achieve sustainable competitive advantage.The study targeted all the seven commercial banks in Nyahururu town with an estimated population of 94,102 customers. It was guided by the resource based theory that seeks to direct organizations along the path to achieving sustainable competitive advantage through the use of resources and capabilities.Cross sectional surveys design were adopted. Using Cochran’s formula a quota sample of 384 quota sampling was used to identify customers in the banks selected and systematic random sampling aimed selecting the nn. A pilot test was carried out on commercial banks in Nakuru town to test for the validity and reliability of the research instrument. Data was then analyzed using both descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS) computer software tool. The results were presented using frequency tables, charts and graphs. Multiple regression analysis was used to draw inferences.The findings of the study will be used by the banking industry player to make policy decisions on ICT investments.
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