The purpose of the study was to investigate the effect of organizational competencies on organizational competitive advantage of the banking sector in Kenya. The specific objective of the study was to; determine the effect of organizational competencies on organizational competitive advantage. This study was informed by resource based theory, stakeholder theory and Michael Porter’s theory of competitive advantage. The study employed explanatory research design. The survey was carried out in 25 banks within Eldoret town, Uasin - Gishu County. The target population was 748 respondents. A two stage sampling technique was used whereby cluster sampling techniques was used to select the banks, thereafter; simple random sampling was a used to select sample of261 respondents from a population. Sample size was calculated using Yamane formula and distributed within the clusters according to Neyman allocation formula. Structured questionnaire was used to collect primary data while secondary data was obtained from published sources such as library, internet and research done by other scholars. Data was analysed using descriptive and inferential statistics. Descriptive statistics like frequencies, mean and standard deviation were used. For inferential statistics, ANOVA and linear Regression were used.The outcome was a probability of R2= 0.620 which means there was 62.0 percent probability of organizational competencies predicting competitive advantage. Organization competencies had positive and significant B values of .565.It also had a positive and significant correlation of .787 with competitive advantage. The study recommends that organizational competencies as a predictor of competitive advantage should be ingrained in the organization policies to foment competitive advantage. Thus, banks should embrace competencies and strategically align them to organization policies for competitive advantage.
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In-Text Citation: (Choge, Namusonge, Makokha, & Musau, 2018)
To Cite this Article: Choge, P. J., Namusonge, G., Makokha, E. N., & Musau, E. G. (2018). The Effect of Organizational Competencies on Organizational Competitive Advantage of the Banking Sector in Kenya. International Journal of Academic Research in Business and Social Sciences, 8(10), 739–760.
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