Relationship Between Strategic Direction, Core Competencies And Firm Competitiveness Among Manufacturing Firms In Uganda

Main Article Content

James Oguta
Andrew Kimwolo
Thomas K. Cheruiyot

Abstract

Purpose- The paper examines the relationship between strategic direction, core competencies, and firm competitiveness among manufacturing firms in Uganda.


Design/Methodology- This study collected quantitative data from 410 manufacturing firms using self-administered questionnaires, while qualitative data was collected from 10 manufacturing firms using an interview guide. Quantitative data were augmented by qualitative methods, allowing us to comprehend the phenomenon under study completely. To study the nature of reality, an explanatory cross-sectional survey was employed. While the content analysis was used to investigate qualitative data, regression analysis was used to evaluate hypotheses.


Findings- According to the research, a firm's competitiveness improves when its executives concentrate on their capabilities. The findings validated the theoretical foundations of the resource-based viewpoint.


Practical Implications- As a result of the findings, manufacturing firms may increase strategic leadership's influence on competitiveness by ensuring that workers have proper directions and that the core competencies are identified and leveraged to ensure efficiency and effectiveness in operations. The findings may assist CEOs and policymakers design strategies and policies to increase the level of competitiveness of their firms.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

Article Details

Oguta, J., Kimwolo, A., & Cheruiyot, T. (2022). Relationship Between Strategic Direction, Core Competencies And Firm Competitiveness Among Manufacturing Firms In Uganda. SEISENSE Journal of Management, 5(1), 72–86. https://doi.org/10.33215/sjom.v5i1.804
Business Management

Copyright (c) 2022 James Oguta, Andrew Kimwolo, Thomas K. Cheruiyot

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Adebayo, L., & Mudashiru, M. (2019). Effect of Strategic Leadership on Competitive Advanta g e of Selected Quoted Insurance Companies in Nigeria. 9(2), 70–78.

Adeoye, I. A. (2019). Purpose: The relationship between strategic leadership and organisational performance of selected service firms in Lagos and Ogun States, Nigeria. IOSR Journal Of Humanities And Social Science (IOSR-JHSS, 24(4). https://doi.org/10.9790/0837-2404020106

Agha, S., Alrubaiee, L., & Jamhour, M. (2011). Effect of Core Competence on Competitive Advantage and Organizational Performance. International Journal of Business and Management, 7(1), 192–205. https://doi.org/10.5539/ijbm.v7n1p192 DOI: https://doi.org/10.5539/ijbm.v7n1p192

Agwu. (2018). Analysis of the Impact of Strategic Management on the Business Performance. Pan-Atlantic University, 17(1), 1–20.

Ajitabh, A., & Momaya, K. (2003). Competitiveness of Firms: Review of Theory, Frameworks and Models. Singapore Management Review, 26(1), 45–61.

Akenten, W. N. (2019). Strategic Leadership and Why is it is Critical for Businesses / Organizations in РОЗДІЛ 3 Економіка підприємства та організація виробництва Strategic Leadership and Why is it is Critical for Businesses / Organizations in Ghana. April. DOI: https://doi.org/10.21272/mer.2018.81.04

Andersson, J., Zbirenko, A., & Medina, A. (2014). Effect of organizational structure, leadership and communication on efficiency and productivity-A qualitative study of a public health-care organization. 71. https://www.diva-portal.org/smash/get/diva2:735889/fulltext01.pdf

Anderson, K., & van der Mensbrugghe, D. (2007). Effects of multilateral and preferential trade policy reform in Africa: The case of Uganda. Journal of International Trade and Economic Development, 16(4), 529–550. https://doi.org/10.1080/09638190701600264 DOI: https://doi.org/10.1080/09638190701600264

Baark et al., 2011. (2011). Innovation Sources, Capabilities and Competitiveness: Evidence from Hong Kong Firms By Erik Baark. April 2015, 1–40.

Banmore, O. O., Adebayo, L., Mudashiru, M., Oluwatooyin, G., Falilat, A., & Olufunke, O. (2019). Effect Of Strategic Leadership On Competitive Advantage Of Selected Quoted Insurance Companies In Nigeria. The Journal of Accounting and Management, 9(2), 70–78. https://search.proquest.com/docview/2319823102?accountid=32819

Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650. https://doi.org/10.1177/014920630102700602 DOI: https://doi.org/10.1177/014920630102700602

Bromiley, P. (2016). Towards a Practice Based View of Strategy. 4(1), 1–23.

Chandra, P. (2016). Competitiveness of Indian Manufacturing : Findings of the Third National Manufacturing Survey 2009 Competitiveness of Indian Manufacturing : Findings of the Third National Manufacturing Survey by : Professor of Operations & Technology Management and India. February. https://doi.org/10.13140/RG.2.1.1786.2166

Chaudhuri, S., Ray, S., & Ray, S. (1997). The Competitiveness Conundrum : Literature Review and Reflections The Competitiveness Conuncdrum. 32(48).

Chen, Y. F., & Wu, T. C. (2007). An empirical analysis of core competence for high-tech firms and traditional manufacturers. Journal of Management Development, 26(2), 159–168. https://doi.org/10.1108/02621710710726062 DOI: https://doi.org/10.1108/02621710710726062

Chun Won, N., Yen Wan, C., & Yazam Sharif, M. (2017). International Review of Management and Marketing Effect of Leadership Styles, Social Capital, and Social Entrepreneurship on Organizational Effectiveness of Social Welfare Organization in Malaysia: Data Screening and Preliminary Analysis. International Review of Management and Marketing, 7(2), 117–122.

Creswell, J. W., & Garrett, A. L. (2008). The “ movement ” of mixed methods research and the role of educators. 28, 321–333. DOI: https://doi.org/10.15700/saje.v28n3a176

Díaz-Chao, Á., Sainz-González, J., & Torrent-Sellens, J. (2016). The competitiveness of small network-firm: A practical tool. Journal of Business Research, 69(5), 1769–1774. https://doi.org/10.1016/j.jbusres.2015.10.053 DOI: https://doi.org/10.1016/j.jbusres.2015.10.053

Ecuru, J., Lating, P. O., & Trojer, L. (2015). Innovation characteristics of formal manufacturing firms in Uganda. 1338. https://doi.org/10.1080/20421338.2014.970434 DOI: https://doi.org/10.1080/20421338.2014.970434

Egwakhe, J. A., & Adeoye, I. (2019). Strategic Leadership Dimensions and Competitive Advantage : Perspective of Service Firms in Lagos and Ogun States , Nigeria Strategic Leadership Dimensions and Competitive Advantage : Perspective of Service Firms in Lagos and Ogun States , Nigeria. May.

Golooba-mutebi, F. (2019). An assessment of the policy framework Linda Calabrese , Frederick Golooba - Mutebi and Maximiliano Mendez - Parra. May 2020. https://doi.org/10.13140/RG.2.2.24594.89285

Gupta, S., Woodside, A., Dubelaar, C., & Bradmore, D. (2009). Industrial Marketing Management Diffusing knowledge-based core competencies for leveraging innovation strategies : Modelling outsourcing to knowledge process organizations ( KPOs ) in pharmaceutical networks. 38, 219–227. https://doi.org/10.1016/j.indmarman.2008.12.010 DOI: https://doi.org/10.1016/j.indmarman.2008.12.010

Hadi, A. S., Rahmatullah Imon, A. H. M., & Werner, M. (2009). Detection of outliers. Wiley Interdisciplinary Reviews: Computational Statistics, 1(1), 57–70. https://doi.org/10.1002/wics.6 DOI: https://doi.org/10.1002/wics.6

Hafeez, K. (2002). Core competence for sustainable competitive advantage : a structured methodology for identifying core competence Core Competence for Sustainable Competitive Advantage : A Structured Methodology for Identifying Core Competence. DOI: https://doi.org/10.1109/17.985745

Hambrick, D. C. (2007). Upper Echelons Theory: An Update The Academy of Management Review Upper Echelons Theory: An update. Source: The Academy of Management Review, 32(2), 334–343. http://www.jstor.org/stable/20159303%5Cnhttp://about.jstor.org/terms DOI: https://doi.org/10.5465/amr.2007.24345254

Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. Academy of Management Review, 9(2), 193–206. https://doi.org/10.5465/amr.1984.4277628 DOI: https://doi.org/10.5465/amr.1984.4277628

Hitt, M. A., Haynes, K. T., & Serpa, R. (2010). Strategic leadership for the 21 century. Business Horizons, 53(5), 437–444. https://doi.org/10.1016/j.bushor.2010.05.004 DOI: https://doi.org/10.1016/j.bushor.2010.05.004

Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1), 1–55. https://doi.org/10.1080/10705519909540118 DOI: https://doi.org/10.1080/10705519909540118

Ireland, R. D., & Hitt, M. A. (1999). Achieving and maintaining strategic competitiveness in the 21st century: The role of strategic leadership. IEEE Engineering Management Review, 27(4), 51–64. https://doi.org/10.5465/ame.1999.1567311 DOI: https://doi.org/10.5465/ame.1999.1567311

Jaleha, A. A., & Machuki, V. N. (2018). Strategic Leadership and Organizational Performance: A Critical Review of Literature. European Scientific Journal ESJ, 14(35). https://doi.org/10.19044/esj.2018.v14n35p124 DOI: https://doi.org/10.19044/esj.2018.v14n35p124

Jerab, D. A., Alper, M., & Baslar, A. (2012). The Impact of Core Competencies on Competitive Advantages & Success in Istanbul Tourists Companies. SSRN Electronic Journal, March. https://doi.org/10.2139/ssrn.1813163 DOI: https://doi.org/10.2139/ssrn.1813163

Jooste, C., & Fourie, B. (2009). The role of strategic leadership in effective strategy implementation: Perceptions of South African strategic leaders. Southern African Business Review, 13(3), 51–68.

Kamya, M. T., & Ntayi, J. M. (2011). Organisational learning and competitive advantage : Testing for the interacting influence of knowledge management and innovation Organisational learning and competitive advantage : testing for the interacting influence of knowledge management and innovati. October. https://doi.org/10.1504/IJIL.2011.043097 DOI: https://doi.org/10.1504/IJIL.2011.043097

Khan, S. Z., Yang, Q., & Waheed, A. (2019). Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance. Corporate Social Responsibility and Environmental Management, 26(2), 285–295. https://doi.org/10.1002/csr.1678 DOI: https://doi.org/10.1002/csr.1678

Kim, M. S., & Thapa, B. (2018). Relationship of ethical leadership, corporate social responsibility and organizational performance. Sustainability (Switzerland), 10(2). https://doi.org/10.3390/su10020447 DOI: https://doi.org/10.3390/su10020447

Le, H. M., Nguyen, T. T., & Hoang, T. C. (2020). Organizational culture, management accounting information, innovation capability and firm performance. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1857594 DOI: https://doi.org/10.1080/23311975.2020.1857594

Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Subba Rao, S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107–124. https://doi.org/10.1016/j.omega.2004.08.002 DOI: https://doi.org/10.1016/j.omega.2004.08.002

Madhani, P. M. (2010). Resource Based View ( RBV ) of Competitive Advantages : Importance , Issues and Implications Resource Based View ( RBV ) of Competitive Advantage : An Overview.

Mahdi, O. R., & Almsafir, M. K. (2014). The Role of Strategic Leadership in Building Sustainable Competitive Advantage in the Academic Environment. Procedia - Social and Behavioral Sciences, 129, 289–296. https://doi.org/10.1016/j.sbspro.2014.03.679 DOI: https://doi.org/10.1016/j.sbspro.2014.03.679

Markoczy, L. (2015). G. P. Hodgkinson and P. R. Sparrow: The Competent Organization: A Psychological Analysis of the Strategic Management Process 2002, Buckingham: Open University Press (distributed by McGraw-Hill). 432 pages. 27(1), 154–157. DOI: https://doi.org/10.1177/017084060502700108

Mishra, M. (2016). Confirmatory Factor Analysis (CFA) as an Analytical Technique to Assess Measurement Error in Survey Research. Paradigm, 20(2), 97–112. https://doi.org/10.1177/0971890716672933 DOI: https://doi.org/10.1177/0971890716672933

Mohammed, R. A., & Rugami, J. (2019). Competitive Strategic Management Practices and Performance of Small and Medium Enterprises in Kenya: A Case of Mombasa County. International Journal of Current Aspects, 3(VI), 193–215. https://doi.org/10.35942/ijcab.v3ivi.85 DOI: https://doi.org/10.35942/ijcab.v3iVI.85

Nagaaba, N. (2020). Agile Enablers And Outcomes: Empirical Validation Of Agile Manufacturing Model In Developing Countries Context-Ugandan SME’s Experience. 5(Ii), 1–21.

Nicholson, J., & Howard, K. (2018). A Study of Core Competencies for Supporting Roles in Engagement and Impact Assessment in Australia. Journal of the Australian Library and Information Association, 67(2), 131–146. https://doi.org/10.1080/24750158.2018.1473907 DOI: https://doi.org/10.1080/24750158.2018.1473907

Olaka, M. H., Lewa, P. P., & Kiriri, D. P. (2017). Strategic Leadership and Strategy Implementation in Commercial Banks in Kenya. Journal of Strategic Management, 2(1), 70. https://doi.org/10.47672/jsm.285 DOI: https://doi.org/10.47672/jsm.285

Peteraf, M. A. (1993). The Cornerstones of Competitive Advantage : A Resource-Based View Author ( s ): Margaret A . Peteraf Published by : Wiley Stable URL : https://www.jstor.org/stable/2486921 The cornerstones of competitive advantage : a resource-based view. 14(3), 179–191. DOI: https://doi.org/10.1002/smj.4250140303

Philippon, G. G. and T. (2018). Author ( s ): Germán Gutiérrez and Thomas Philippon Published by : American Economic Association Linked references are available on JSTOR for this article : Ownership , Concentration , and Investment. 108(May). DOI: https://doi.org/10.1257/pandp.20181010

Prahalad, C. K., & Hamel, G. (1994). Strategy as a Field of Study: Why Search for a New Paradigm? C. K. Prahalad; Gary Hamel Strategic Management Journal, Vol. 15, Special Issue: Strategy: Search for New Paradigms. (Summer, 1994), pp. 5-16. Search, 15, 5–16.

Public, U. (2020). Business impact.

Revilla, A., & Fernández, Z. (2013). Environmental Dynamism, Firm Size and the Economic Productivity of R&D. Industry and Innovation, 20(6), 503–522. https://doi.org/10.1080/13662716.2013.833374 DOI: https://doi.org/10.1080/13662716.2013.833374

Rotemberg, J. J., Saloner, G., & Rotemberg, J. J. (2016). Visionaries , Managers , and Strategic Direction Published by : Wiley on behalf of RAND Corporation Stable URL : http://www.jstor.org/stable/2696355 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use , available at Vi. 31(4), 693–716. DOI: https://doi.org/10.2307/2696355

Savin, N. E., & White, K. J. (1977). The Durbin-Watson Test for Serial Correlation with Extreme Sample Sizes or Many Regressors Author ( s ): N . E . Savin and Kenneth J . White. Econometrica, 45(8), 1989–1996. http://www.jstor.org/stable/1914122 DOI: https://doi.org/10.2307/1914122

Schulz, S. A., & Flanigan, R. L. (2016). Developing competitive advantage using the triple bottom line: a conceptual framework. Journal of Business and Industrial Marketing, 31(4), 449–458. https://doi.org/10.1108/JBIM-08-2014-0150 DOI: https://doi.org/10.1108/JBIM-08-2014-0150

Serfontein, J. J. (2010). The Impact of Strategic Leadership on the Operational Strategy and Performance of Business Organizations in South Africa. Journal of Modern African Studies, 2(2), 98–105.

Shrestha, M. (2019). Contribution of Job Nature on Leadership Style among Academia. SEISENSE Journal of Management, 2(4), 1–13. https://doi.org/10.33215/sjom.v2i4.156 DOI: https://doi.org/10.33215/sjom.v2i4.156

Srivastava, S. C. (2005). Managing Core Competence of the Organization. 30(4), 49–63. DOI: https://doi.org/10.1177/0256090920050405

Srivastava, S., Sultan, A., & Chashti, N. (2017). Influence of innovation competence on firm level competitiveness: an exploratory study. Asia Pacific Journal of Innovation and Entrepreneurship, 11(1), 63–75. https://doi.org/10.1108/apjie-04-2017-021 DOI: https://doi.org/10.1108/APJIE-04-2017-021

Taherdoost, H. (2017). Determining Sample Size ; How to Calculate Survey Sample Size 1 Survey Sample Size. 2.

Takiguchi, M. (2000). Role of HLA in HIV-1 infection. Uirusu. Journal of Virology, 50(1), 47–55. https://doi.org/10.2222/jsv.50.47 DOI: https://doi.org/10.2222/jsv.50.47

UBOS. (2020). 2020 Statistical Abstract. Uganda Bureau of Statistics, 1, 303. http://www.ubos.org/onlinefiles/uploads/ubos/pdf documents/abstracts/Statistical Abstract 2013.pdf

Wang, G., Holmes, R. M., Oh, I. S., & Zhu, W. (2016). Do CEOs Matter to Firm Strategic Actions and Firm Performance? A Meta-Analytic Investigation Based on Upper Echelons Theory. Personnel Psychology, 69(4), 775–862. https://doi.org/10.1111/peps.12140 DOI: https://doi.org/10.1111/peps.12140

Wang, H., Tsui, A. S., & Xin, K. R. (2011). CEO leadership behaviors, organizational performance, and employees’ attitudes. Leadership Quarterly, 22(1), 92–105. https://doi.org/10.1016/j.leaqua.2010.12.009 DOI: https://doi.org/10.1016/j.leaqua.2010.12.009

Wernerfelt, B. (1984). A Resource-Based View of the Firm Author ( s ): Birger Wernerfelt Published by : Wiley Stable URL : https://www.jstor.org/stable/2486175 REFERENCES Linked references are available on JSTOR for this article : reference # references _ tab _ contents You may. 5(2), 171–180. DOI: https://doi.org/10.1002/smj.4250050207

World Bank. (2020). Uganda Economic Update - Strengthening Social Protection to Reduce Vulnerability and Promote Inclusive Growth. 14th Edition February 2020, 65. DOI: https://doi.org/10.1596/33323

Zagreb, P. I. (2012). Theoretical Foundations and Measurement of Competitiveness. Poslovna Izvrsnost, 143–166.