Leagile Strategy and Competitive Advantage in Construction Companies’ Supply Chains in Nairobi-Kenya

Abstract

This study assessed the influence of leagile strategy on competitive advantage. These variables were contextualized in the construction companies’ supply chains in Nairobi City County, Kenya. The objective of this study was to: determine the influence of leagile strategy on competitive advantage in the supply chains of construction companies in Nairobi City County, Kenya. Using a cross-sectional descriptive survey and stratified sampling procedure, a sample size of 323 was obtained. Data from 260 companies were collected vide structured questionnaires representing 80.5 percent response rate. Analysis was done vide descriptive, and inferential statistics. The hypotheses were tested utilizing simple regression analyses. Statistical software package for social sciences (SPSS) version 22 was used to analyze the information. The results revealed that leagile strategy has a significant positive influence on competitive advantage of construction companies’ supply chains in Nairobi City County. However, the study revealed that there are additional factors attributed to the achievement of competitive advantage in construction companies’ supply chains in Nairobi City County different from leagile strategy. This study has contributed to theory development by confirming the suppositions of dynamic capabilities, network, and institutional theories towards achievement of competitive advantages. In addition, it has added knowledge in strategic management about the influence of leagile strategy on competitive advantage. The findings of this study are useful to policymakers who may use it as a basis for organizational reforms. The study’s findings are useful to policymakers in the formulation, and implementation of policies and legislation which can lead to change towards competitiveness, and survival of construction companies in Nairobi City County. This research is helpful to practitioners in providing a comprehensive guide towards achievement of competitive advantage in organizations. Practitioners are guided on the aspects of leagile strategy which lead to competitive advantages and help in alleviating the myriad organizational problems. Managers should engage in a continuous environmental scanning to access the opportunities, and be cognizant of the other prevailing events for swift reaction to the stiffly competitive environments. The difficulties posed by the COVID-19 pandemic was a limitation to this study. There were several restrictions due to COVID-19 especially on the access of business premises which was not conducive for information gathering. Further research is recommended to extend the scope of this study by including other important conceptual variables which may have influence on competitive advantage. Future research should also consider expanding the contextual space to include transportation companies as well as other industries with a view of determining if the findings of this study are replicable.