Franchising Practices and Competitive Advantage of Telecommunication Companies in Kenya

Susan Njiraini¹ , Lucy Wanza² , Eng’airo Pamela³

Section:Research Paper, Product Type: Journal-Paper
Vol.10 , Issue.10 , pp.30-35, Oct-2024

Online published on Oct 31, 2024

Copyright © Susan Njiraini, Lucy Wanza, Eng’airo Pamela . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
Competition is at the core of firm success or failure. In a competitive market, companies sometime find it necessary to adopt franchising practices which have value creating potential that makes them an important source of competitive advantage. In Kenya, competition in the telecommunication sector is very stiff and it has led to some companies recording low growth rates as result of low profit margins, customer base and revenues. The current study sought to determine the effect of franchising practices on competitive advantage of telecommunication companies in Kenya. This study adopted mixed methods research design which was used to determine the effect of strategic alliances practices on competitive advantage of Telecommunication Companies in Kenya. Target population was 1263 respondents drawn from 2 out of the 3 Telecommunication companies that fall under the category of tier 1 Telecommunication companies in Kenya. The sample size was 304 respondents. The study adopted both cluster and simple random sampling techniques. The study used both primary data and secondary data where questionnaires and interview guide were used to collect primary data while documentary analysis guide was used to collect secondary data. The study adopted content validity where the questionnaires were validated using expert’s opinion. Reliability was tested using Cronbach’s Alpha (?) co-efficient. Data collected was analyzed using both descriptive statistics, inferential statistics and content analysis. The research found that franchising practices had a significant effect on competitive advantage with (? =0.614, p<0.05). The study concluded that franchising practices have a significant effect on a company’s market competitiveness. The study recommended that customers at customer care desks should be served in an efficient manner. Telecommunication companies should have suitable internet services to enhance their competitive advantage in the market place.

Key-Words / Index Term :
Franchising practices, competitive advantage, Telecommunication companies, Kenya

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