Influence of Mckinsey Framework on Competitive Advantage of Firms in the Telecommunication Industry in Kenya

Abstract

The main objective of the study was to assess the influence of McKinsey Framework on Competitive Advantage of firms in Telecommunication Industry in Kenya. The study adopted Contingency theory and the Dynamic Capabilities theory. To achieve objectives, the study adopted descriptive survey design. The target population for this study comprised of all the 179 telecommunications firms licensed by communications Authority. The study targeted the heads of the strategic units from each of the companies since they are key determining the strategies which would give the firms a competitive edge over the other firms. Yamane formula was used to determine a sample size of 123 firms which were randomly selected. Data was collected using questionnaires which were structured using closed-ended questions in likert scale form. Descriptive and inferential analysis was conducted to achieve the objectives of the study. The study findings indicated that the two McKinsey Framework factors, that is strategy and staff have a positive and significant influence on competitive advantage. Based on the findings, the study recommends that telecommunication firms which aim to improve their competitive advantage to ensure that they have put in place better strategies such as strategic innovation, differentiation and cost leadership.  The firms should also focus on building its staff capacity through staff training and development, staff performance and appraisal and staff promotion and compensation.

Key Words: Staff, Strategy, Telecommunications Firms, Kenya