Abstract:
ABSTRACT
The link between Information and Communication Technology (ICT) and Sustainable
Competitive Advantage (SCA) has continued to take a central place in strategy research and
scholarly debates. The perspectives through which ICT has been studied in organizational
settings has appeared to strongly emphasize it as a powerful competitive weapon for sustainable
competitive advantage, yet the extent to which the different aspects of ICT have contributed to
the sustainability of that advantage has not been established. The study aimed at examining the
effect of ICT investments on SCA of Kenyan commercial banks. The specific objectives were to
determine the extent to which ICT assets have contributed to SCA of the banks; the extent to
which ICT capabilities have contributed to SCA of the same banks; and also the extent to which
the banks have invested in ICT. The study was based on the resource-based theory that seeks to
direct organizations along the path to achieving sustainable competitive advantage through the
use of resources and capabilities. Descriptive research design was adopted. The population of
study was 94,102 customers from which a sample of 666 customers were selected. Systematic
random sampling techniques was used in collection of data. Customers who filled the
questionnaires and returned were 392. The data was then analyzed using both descriptive and
inferential statistics with the aid of Statistical Package for Social Sciences (SPSS) computer
software tool. The results were presented using both graphical and summary measures in form of
frequency tables, charts and graphs. Multiple regression analysis was used to draw inferences.
The study found out that all the banks have invested in ICT infrastructure to a large extent and
both ICT assets and ICT capabilities have a significant effect on sustainable competitive
advantage. Each of these has a positive correlation with the sustainable competitive advantage.
However, ICT capabilities has a stronger association with sustainable competitive advantage
than ICT assets. The researcher recommends that all the banks come up with ICT strategic plans
to address all the aspect of ICT investments. In addition, the study recommends that
implementation and monitoring of the ICT strategic plans be ensured to enhance evaluation and
justification of ICT investments made by banks.
