INTELLECTUAL CAPITAL AND SUSTAINED COMPETITIVE ADVANTAGE IN THE TELECOMMUNICATIONS SECTOR IN KENYA: A CASE OF SAFARICOM PLC-NAIROBI

Abstract

The rising interest in intellectual capital which was attributed to the rise of a new economy that is heavily dependent on technology and information. However, in as much as intellectual capital was noted to influence financial performance as well as forge a competitive advantage for firms, there is little literature available on the relationship between intellectual capital and sustainable competitive advantage in Kenya, and especially in the telecommunications sector, a gap which the research aimed at filling. This study aimed at evaluating the influence of intellectual capital on sustainable competitive advantage in the telecommunications industry with Safaricom PLC as the case study. The study embraced a descriptive research design which targeted Safaricom PLC Headquarters employees in Westlands, Nairobi. The research adopted a stratified random sampling method that included top management and employees of the 9 different departments within Safaricom PLC. The total sample of the project was 363 respondents comprising of employees from the 9 departments. The study used semi-structured questionnaires to collect the primary data from the respondents. Statistical package for social sciences (SPSS) was used to process and analyze raw data from respondents. MS excel spread sheet tools were utilized in presenting the quantitative data in figures and tables. Quantitative and qualitative approaches were used to analyze data. The data was analyzed using both descriptive and inferential statistical tools. Further, inferential statistics were carried out to examine degree and extent of relationship between human capital, structural capital, relational capital and technological capital on sustained competitive advantage in the telecommunications sector. In conclusion, there was a positive correlation between intellectual capital on sustained competitive advantage in the telecommunications sector. The study recommended that telecommunications sector Company employees like Safaricom PLC to be provided with training to improve their communication strategies.