Influence of Operations Strategies on Competitive Advantage of Automotive Companies in Kenya

Abstract

Operations strategy addresses what needs to be done to overcome current and future challenges posed by the competitive environment. The importance of the operations function is growing as it gives the ability to compete by providing the capacity to respond to customers and by developing the capabilities that will keep the organisation ahead of its competitors. This study sought to establish the influence of operations strategies on the competitive advantage of automotive companies in Kenya. The study used an explanatory research design. The target population was 400 members of the top management team, including CEOs, functional managers, and senior managers drawn from 63 companies in the automotive industry in Kenya. The study utilised a census to include all the 400 members of the top management team in the 63 automotive companies. The study findings indicated that there is a moderate correlation between the operations strategies and the competitive advantage of automotive companies in Kenya (r = 0.517). The findings further showed that 26.7% of the variability in the competitive advantage of automotive companies is explained by operations strategies (R Square = 0.267). It was also revealed that a change of one unit in operation strategies would lead to a change of 0.517 in competitive advantage (β = 0.517, t = 11.253, p < 0.05). The study reveals that operations strategy has a significant influence on competitive advantage of automotive companies. In order to achieve competitive advantage automotive companies should consistently participate in the creation, dissemination, and interpretation of information to develop novel products.