Competitive advantage

Abstract

Purpose The purpose of this paper is to examine the mediating role of competitive advantage in the relationship between managerial competence and financial performance of commercial banks in Uganda. Design/methodology/approach A cross-sectional survey was employed using 22 fully licensed and operational commercial banks in Uganda. Data were analyzed using descriptive statistics, zero order correlation and hierarchical regression analyses. Further, the bootstrap method was used to test the mediation effect of competitive advantage. All the analyses were performed using SPSS v21. Findings The findings reinforce the important position of managerial competence on financial performance of commercial banks. First, managerial competence enhances firms’ competitive advantage. Second, managerial competence has an indirect effect on financial performance through competitive advantage. Overall, managerial competence and competitive advantage are strong predictors of financial performance of commercial banks. Research limitations/implications The study employed only a single research methodological approach, therefore future research could be undertaken using a mixed approach and triangulate to compare findings. Furthermore, the findings from the present study are cross-sectional, considering the limitations there in, a longitudinal approach should be explored. Practical implications Emphasis should be put on improving the knowledge and skills of managers so as to attain a competitive edge in the market and thus register increased profits. This will help practitioners make legitimate decisions and conclusions that can foster business growth. Originality/value A mediation effect of competitive advantage in the relationship between managerial competence and financial performance was tested; previous studies have tended to test the direct effects.

Contextual Factors and Strategic Consequences of Cloud Enterprise Resource Planning (ERP) Adoption in Malaysian Manufacturing SMEs: A Conceptual Framework

“…Besides that, the dynamic capabilities theory by Teece, Pisano and Shuen (1997) claims that CA developed from the dynamic capabilities of the firm can result to superior performance. In the commercial banking context, Kamukama, Kyomuhangi, Akisimire and Orobia (2017) found a partial significant mediation impact of CA in the relationship between competence and financial performance in Uganda. Saeidi et al (2015) established the mediating effect of CA in the relationship between corporate social responsibility (CSR) and financial performance.…”

The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance

“…Managerial competencies (skills, knowledge, etc.) indirectly contribute to firms' performance via creating sustainable competitive advantage through unique resources [45]. From the upper echelon theory perspective, the top management capabilities and skills are significant drivers leading to firms' outputs [14].…”

Managerial competencies and competitive advantage in pharmaceutical blockbusters

“…The connection between managerial competencies and sustainable competitive advantage remains a considerable outcome within organisational learning (Crook et al, 2008). Kamukama et al (2016), in their study, reported that managerial competencies enhanced firms' competitive advantage. Moreover, this has an indirect effect on the financial performance of commercial banks.…”