The telecommunication industry in Kenya has faced challenges such as declining voice revenues, regulatory changes, and risks from technological advancements, necessitating a strategic response to maintain competitive advantage. This study aimed to investigate the effect of product development strategies on the competitive advantage of telecommunication firms in Kenya, focusing on how ICT regulatory policy moderates this relationship. The study employed a purposive sampling method to select respondents from key industry players and gathered data using structured questionnaires. Data analysis was carried out in three stages: descriptive statistics, bivariate analysis, and regression analysis.
The findings revealed that product development strategies have a statistically significant influence on the competitive advantage of telecommunication firms in Kenya. The study also established that ICT regulatory policy plays a critical role in moderating the relationship between product development strategies and competitive advantage. Specifically, firms that aligned their product development initiatives with regulatory policies experienced improved market positioning and operational efficiency, thereby achieving a higher competitive advantage. The study concludes that adopting robust product development strategies, coupled with compliance and engagement with ICT regulatory policies, is essential for the sustained competitiveness of telecommunication firms in Kenya. These findings have implications for strategic planning and regulatory compliance in the industry, offering insights for management and policymakers to foster growth and innovation. The research is limited to telecommunication firms and recommends further studies in related communication sectors, including media to provide a more comprehensive understanding of competitive advantage dynamics.
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