How Firm Innovation Affect Competitive Advantage Concurrently with Leagile Strategy: An Empirical Analysis of Construction Companies

Grace Georgine Oyombe

International Journal of Business and Management, 2024, vol. 19, issue 2, 140

Abstract: This research embarked on establishing the extent to which construction companies’ supply chains in Nairobi City County-Kenya realized competitive advantage as a result of the implementation of leagile strategy, and firm innovation strategies. A total of 260 construction companies in Nairobi City County-Kenya were surveyed vide structured questionnaires. Data was evaluated vide various diagnostic tests and regression analysis to determine the relationships between the study variables. The intervening effects of firm innovation was further tested vide a stepwise approach proposed by Baron and Kenny in 1986. The results revealed that leagile strategy has a significant positive influence on competitive advantage. Equally, firm innovation has a positive significant influence on competitive advantage. Further tests showed that leagile strategy has a significant influence on firm innovation, which in turn significantly impact on competitive advantage of construction companies’ supply chains. It was concluded from this study that firm innovation had a positive significant intervening influence on the association concerning leagile strategy, and competitive advantage in the construction companies’ supply chains. The study outcome validates that leagile strategy, and firm innovation are strategic enablers of competitive advantage in the construction companies’ supply chains. The leagile strategy, and firm innovation model is a key measure that might help policymakers, practitioners, as well as researchers in understanding achievement of competitive advantage in construction companies in developing economies like Kenya. The study had limitations emanating from the effects of COVID-19 Pandemic, which was a challenge during the data collection. Further studies are recommended to be conducted in other supply chains different from those of construction companies. Additionally, a similar study could be conducted to incorporate transport, and distribution companies in the construction companies’ supply chains in Nairobi City County-Kenya.

Date: 2024
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