Impact of Strategic Management on Competitive Advantage
Impact of Strategic Management on Competitive Advantage
by-Roda MOHAMED & Pınar BAŞAR, Department of Business Administration, İstanbul Ticaret University, Faculty of Social Sciences, İstanbul, Turkey
Reviewed by - Nang Aye Aye Htun ( ID: 236511001)
Background of the research
Strategic management is a process that organizations use to plan and direct their activities in order to achieve specific goals and objectives. Earlier, strategic management only focused on identify the strategies that were most likely to lead to financial success. But over time, the focus has expanded to include other factors such as organizational structure and culture. Therefore, it is necessary to study the strategic management and its impact for the competitive advantage.
Research Questions
1. What is the relationship between strategic management and competitive advantage?
2. What is the effect of strategic management on competitive advantage?
3. How strategic management can deal with a competitive advantage?
Research Objectives
· To understand the relationship between strategic manage- ment and competitive advantage.
· To investigate the effect of strategic management on competi- tive advantage.
· To assess phases of strategic management that can deal with a competitive advantage.
Research Approach
In this study, the researchers used a quantitative research approach. the data collection was efficiently interpreted and analyzed using descriptive research. The quantitative approach uses cross-sectional or longitudinal surveys using self-administered structured questionnaires to generalize a sample to a population.
Research Design
Studies are non-experimental researches that describe the characteristics of a particular individual or a group. It deals with the relationship between the variables, the development of generalizations, and the use of theories with universal validity. Further, descriptive surveys are used to discover causal relationships (descriptive correlation), provide precise quantitative descriptions, and observe behavior.
Sample and Procedure
The researcher chose random sampling as the sampling method. The study was conducted in Somalian companies in Somalia. The target population of this study was 280 employees from select Somalian companies in different cities. This population consisted of managers, employees, and other staff selected from the orga- nization. This research utilized a quantitative method of analy- sis. This study used a questionnaire to collect primary data from 200 respondents’ managers, employees, and other staff selected from different organizations using a questionnaire in May 2021.
Instruments
A three-page survey is created to obtain information about the impact of strategic management on competitive advantage. The survey is divided into three main parts: The first section of the survey includes questions about the demographic characteristics of respondents (age, gender, education level, etc.). The questionnaire had 27 structured items, with 21 relating to the independent variable (strategic management) and the dependent variable (competitive advantage).
Measurement of strategic management scale (Borges and Gaia, 2010). To measure strategic management, 11 items are rated on a 5-point Likert scale (1 = disagree entirely, 2 = disagree, 3 = neither agree nor disagree, 4 = agree, and 5 = agree fully).
Measurement of competitive advantage (Sigalas et al., 2013). To measure competitive advantage, 10 items are rated on a 5-point Likert scale (1=strongly disagree, 2=disagree, 3=neither agree nor disagree, 4 =agree, 5 = strongly agree).
Research Findings
The results show that there is a significant relationship between strategic management and competitive advantage. Regression analysis confirms this result by ensuring an effect on the stra- tegic management of the competitive advantage. The result is significant theoretical, and other scholars found a similar result (Damilola et al., 2015). The impact of strategic management on competitive advantage and organizational performance found a positive correlation between strategic management and competitive advantage. Businesses that employ such tactics empha- size ongoing development, are optimistic about new solutions, and actively seek lucrative prospects.
There is a significant and positive relationship between competitive advantage and strategic management. Regression analysis confirms this result by demonstrating an effect on the competitive advantage of strategic management, similar to the result by Sołoducho-Pelc (2014). They found a positive relationship between competitive advantage and strategic management. This means that when the scope for developing new industry standards expands (technology, product, and organizational measures, for example), the importance of the primary competitive advantage based on innovation and technology also expands.
Strengths of the research
· For reliability: Cronbach’s alpha coefficient is used.
· Regression analysis and Correlation Analysis are used to strengthen their data results.
Comments
Post a Comment