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Realizing Competitive Advantage Through Leagile Strategy: A Survey of Construction Companies’ Supply Chains in Nairobi-Kenya

Grace Georgine Oyombe1* , Zachary Bolo Awino2 , Martin Ogutu2 and James Muranga Njihia3

1Department of Enterprise and Consultancy Services, The Technical University of Kenya, Nairobi City County, Kenya .

2Department of Business Administration, University of Nairobi, Nairobi City County, Kenya .

3Department of Management Sciences and Project Planning, University of Nairobi, Nairobi City County, Kenya .

Corresponding author Email: olumgrace756@gmail.com


DOI: http://dx.doi.org/10.12944/JBSFM.05.01.05

There is cost-effective reasoning for designing a leagile supply chain (SC) strategy which refers to the synchronized application of both lean and agile approaches. Leagile strategy has been suitably applicable to manufacturing and has also been adopted by organizations in the optimization of deliveries of prefabricated building projects1,2. Companies equally embrace leagile strategy towards improving their competitiveness and realizing success3. Objective: This paper is an empirical study that examines the Supply Chains of Construction Companies to determine how Leagile Strategy impacts Competitive Advantage. Methodology: From a population of 4,015, stratified and simple random sampling procedure was employed to obtain a sample of 323 construction companies located in Nairobi-Kenya which were surveyed vide a cross-sectional approach. Diagnostic tests were conducted which revealed the reliability and validity of the questionnaire. Using structured questionnaires formulated in a five-point Likert Type scale to collect data, inquiries were directed to 323 respondents who were Supply Chain Managers and Directors or their representatives obtaining response from 260. Analysis of information was done vide Statistical software for social sciences version 22, generating both descriptive and inferential statistics.  Correlation, and a linear regression model were used to test the hypothesis. Findings: This study found that leagile strategy influences competitive advantage in the construction companies’ supply chains. The findings further showed that other additional factors besides leagile strategy influence competitive advantage. Conclusion: A major conclusion was drawn that competitive advantage is significantly influenced by leagile strategy in construction companies’ supply chains. It was further concluded that through leagile strategy implementation, construction companies improved their competitiveness, outperformed competitors and alleviate the various problems hindering survival. Furthermore, the study established that besides leagile strategy, there are other factors which are contributing to competitive advantage. Implications: There is an exposition of the existence of a significant influence on competitive advantage by leagile strategy. The finding enhances conceptual understanding on the association between those two variables and increases knowledge in strategic management.  There is fresh literature on the fact that leagile strategy vide its attributes such as waste removal, TQM, strategic planning, flexibility, responsiveness, IT systems, economies of scale, etc. impacts on competitive advantage.  Additionally, leagile strategy has the capabilities of attaining competitive advantage by reducing costs, differentiating products, enhancing customer service level and shortening the lead times.  The study also compliments knowledge concerning methodology in terms of the use of stratified sampling procedure, diagnostic tests which ensure research instrument’s reliability and validity as well as the Statistical software for social sciences version 22 to confirm how leagile strategy influences competitive advantage. Limitations: However, major limitations such as the outbreak of COVID-19 pandemic hindered the smooth data collection process and may have affected the response rate. This study recommends that construction companies should embrace leagile strategy to improve their competitiveness, outperform competitors and survive in the tumultuous business environment. This can be done through the implementation of practices which focus on reducing costs, differentiating products, increasing customer service level and shortening lead times. This research proposes that future studies should be conducted across other multiple industries and sectors using different methodologies from the current study. 

Competitive Advantage; Construction Companies; Leagile Strategy; Supply Chain

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Oyombe G. G, Awino Z. B, Ogutu M, Njihia J. M. "Realizing Competitive Advantage Through Leagile Strategy: A Survey of Construction Companies’ Supply Chains in Nairobi-Kenya". Journal of Business Strategy Finance and Management, 5(1). DOI:http://dx.doi.org/10.12944/JBSFM.05.01.05

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Oyombe G. G, Awino Z. B, Ogutu M, Njihia J. M. "Realizing Competitive Advantage Through Leagile Strategy: A Survey of Construction Companies’ Supply Chains in Nairobi-Kenya". Journal of Business Strategy Finance and Management, 5(1). Available from:https://bit.ly/3XtsWCu


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Article Publishing History

Received: 2022-06-16
Accepted: 2022-11-16
Reviewed by: Orcid Orcid Nemer Badwan
Second Review by: Orcid Orcid Abhishek Sharma
Final Approval by: Dr. Maria Dolores Guillamón López

Introduction

Business companies the world over, are upgrading and combining lean and agile approaches with a view to enhancing effectiveness and responsiveness in their supply chains4. Leagile strategy is the hybrid of lean and agile approaches thereby extracting the benefits of both strategies and has been proven to be efficient in handling supply chains (SCs) due to the synergistic advantages. Leagile strategy has attained greater significance in the current business research scenario5 and is considered the best SC approach based on the desirability index score6. Pure leanness or agility is rarely experienced in real-world situations and their implementation approaches differs with firms and SCs 7. It is beneficial to consider both strategies to meet customers’ demands efficiently and effectively by amalgamating their positive attributes in the SC 8-10. In a leagile SC, lean is upstream and agile downstream of the material flow. Agility is executed by embracing leanness, which eradicates waste and ensures a smooth schedule in all operations prior to its utilization 11. Lean strategy enables coordination inside and amongst companies by focusing on the achievement of efficiency, elimination of waste, overstretch and value creation12 as well as supporting a smooth schedule 13. Agile philosophies are useful when the SC desires to react speedily to shifting demands, guarantee superior quality, and/ or transact with products that have short life cycles 14. Responsiveness assists leagile SCs to realize speedy reactions to marketplace adjustments and satisfy customers, whereas effectiveness is key to perfect cost control 15. In a leagile SC, innovative products require the application of an agile strategy, whereas leanness is suited for commodities characterized by long life cycles, shorter lead times, homogeneity and small markups 16.

Competitive advantage (CA) is a yardstick for measuring competitiveness and demonstrating a company’s industry position 17. The two important sources of CA are lower cost of production and differentiation of products and services18. Competitive advantage is explained from a supply chain management’s standpoint as being ahead of competitors in terms of commodity’s cost, superiority, innovativeness, as well as delivery reliability and speed 19-21. Companies realize a CA if they implement strategies that enable them to be ahead of the competition and as competition intensifies, every company the world over is continuously reviewing its competitiveness, with the fast fluctuating economic environment 22. Managers and company executives continuously re-evaluate internal and external commodities costs, collect market data, research the markets to gain insight into customers’ requirements, forecast and relook at production costs and accomplish CA in their operative activities 23.

Supply chains are networks of entities which ensure conveyance of commodities from suppliers to the end users 24. Supply chains take many forms and vary significantly in density and diversity 25. Within an organizational setup, the SC consists of activities such as sourcing, production and distribution 26. Construction supply chains comprise larger projects which interconnect hundreds of different suppliers of merchandises 27. Most companies in the construction industry operate as flexible firms characterized by extensive outsourcing, almost exclusively focusing on management and coordination functions28.                                

As a contributor to GDP, the propeller of growth in other sectors, and a provider of employment, the construction industry in Kenya is of great importance. Yet, the performance of construction companies is dismal. Their major internal concerns are the deployment of resources, and the use of technological innovations, and the construction companies’ ventures also are run on the bases of outdated inefficient approaches. Over 70 percent of the ventures initiated have high chances of costs increasing over time and a probability of above 50 percent of these projects escalating in cost by 20 percent 29. The construction ventures are incapable of timely accomplishing of their budgetary plans 30. Externally, construction companies face rapidly changing complex environments, globalization, and stiff competition. It may be necessary to unearth if leagile strategy assists the construction companies in delivering value, improving responsiveness, and competitiveness in the dynamic business environment.

Study Objective

To explore Leagile Strategy’s influence on Competitive Advantage in Construction Companies’ Supply Chains.  

Leagile Strategy, and Competitive Advantage

Leagile strategy is one of the innovative and strategic approaches companies adopt for the achievement of competitive advantages in their supply chains31, 32. The persistent adjustments in the marketplace have put pressure on many supply chains to cope by changing their strategies to maximize flexibility 33, 34. The highly competitive environment and unpredictable markets pose difficulties for firms to adjust in their supply chain operations35-38. Therefore, business companies need to become more cost-effective, responsive and focused on gaining and sustaining competitive advantage in their supply chains to survive39. Stefanelli et al. 40 posit that leagile supply chain management is characterized by quick reaction, cost-reduction, and an emphasis on customer service in the rapidly evolving marketplace. Blending leanness and agility into one strategy is vital in bringing out the best of both worlds. In the lean strategy, sharing of information is desired whereas it's a mandatory requirement under the agile networks 41. Agile strategy is majorly concerned with rapidity, which is the capability of speedy implementation of decisions 42. Agility is concerned with the long-term perspective, especially providing the capability of detecting vital durable variations in the network as well as in the marketplace and adapting appropriately 43. An agile strategy is worthwhile for firms whose operational environment is unpredictable while those operating under less uncertainty should embrace leanness 44. It has been reiterated that short lead times, achievable deadlines, ability to change product specifications are the logistical aims of a leagile SC 45. Though leanness is connected with very low-value innovative products, agility is characterized by high-value commodities according to a study among manufacturing firms in China 46. Leagile supply chain strategy has been applied in healthcare facilities in Iran 47, among light vehicle manufacturers in South Africa 48, and is suitable for hybrid products 49. The most pressing managerial problem for organizations is gaining an advantage over competitors through effective management of current operations and innovation for the future. Becoming a market leader in cost, differentiation or a focus on either, are the three main generic strategies proposed by Porter 50. Porter 51 argued that winning approaches emanates from ensuring the possession of sustainable CA. He posits that CA is attainable by companies who are capable of outperforming competitors in terms of acquiring more customers and designing defense mechanisms against the competition. Therefore, to be successful in achieving competitive advantage, companies should offer products at affordable cost, superior quality, of better designs, at the right location, and ensure customers are satisfied. satisfaction are the sources of CA. Competitive advantage refers to a set of capabilities enabling businesses to demonstrate better performance than rivals 52. Christensen 53 defined competitive advantage as a value that inspires consumers to procure a firm’s products and causes barriers to imitation by other firms. The SC is considered as the basis of competitive advantage because no company can operate independently from its supply network. The firms in a supply chain increases their performance by satisfying customers and achieving a competitive advantage. It is those SCs with the capability of activating synchronized processes, competencies, and infrastructures as well as sharing risks and costs, reducing current product life spans, and lead times that can achieve CA 54.

In the current investigation, the conceptual framework shown in Figure 1 describes leagile strategy-competitive advantage association. The conceptual framework shows Leagile Strategy as the independent variable and Competitive Advantage, the dependent one. This researcher set up indicators to measure the concepts. The process of operationalization helped in establishing a connection between concepts and variables, with a view of measuring them to enable findings to be generalized to the real world55. The indicators of Leagile Strategy are waste elimination, total quality management, economies of scale, cooperation, strategic planning, feedback, knowledge management, responsiveness to the market, flexibility, IT, and systems. Product cost, differentiation, customer service level, and lead times are the indicators of CA.   

Table 1: Key study variables, indicators, and supporting literature

Variable

Indicators

Supporting literature

Leagile Strategy

 

Removal of Waste

TQM

Economies of Scale & Synergies

Cooperation

Strategic Planning

IT & systems

Knowledge and Feedback Management

Market Responsiveness

Flexibility

Christopher (2011), Naylor et al. (1999), Miah et al. (2013), Jaya & Kumar (2016), Cohen & Lee (2020), Kalafus (2014), Wu et al., (2019), Milovanovic & Popovic (2019), Slack & Brandon-Jones (2018), Stefanelli et al.,(2019), Qi et al. (2009).

Competitive Advantage

Cost

Differentiation

Customer Service Level

Lead Time

Porter (1980, 1985, 2000), Bobillo et al. (2010), Christensen (2010), Ross (1998), Barney (1991), Li et al. (2006)

 
Figure 1: Leagile Strategy-Competitive Advantage Association

Click here to view Figure 

Study Hypothesis

To examine the validity of the model, the hypothesis is expressed as H01:There is no significant influence of Leagile Strategy on Competitive Advantage in Construction Companies’ Supply Chains.

Materials and Methods

Materials

This study is underpinned by Dynamic Capabilities (DC) Theory and Network Theory. The theory of dynamic capabilities offers clarifications of a sustainable competitive advantage that goes beyond the resource-based view’s belief which examines resources in terms of being valuable, rare, inimitable, and non-substitutable 56. Dynamic capabilities assist firms in being ahead of competition because they empower them in integrating, building and reconfiguring different resources to respond to the fast-evolving business scenario 57. Dynamic Capabilities Theory explains how firms attain competitive success in the operating market 58, 59. Networks theory clarifies the myriad cooperative relationships among the partners in the linkage 60, 61. Network in a supply chain is complex depending on the relationships formed among partners 62. Companies in the network perform activities and exchange resources whereby they become connected directly and/or indirectly. Once formed, these relations become special and companies enjoy direct communications leading to product customization and the capability to meet unique customer needs 63.  

Madhani 14 posits that leagile strategy can be realized by ensuring level production scheduling upstream and quick customer response downstream of the decoupling point. A second approach to understanding leagile strategy in the company is the use of the Pareto 80:20 rule in which lean strategy is utilized on twenty percent of products categorized as having demand stability, fast selling, and made for stocking. The scholar asserts that the agile strategy is concentrated on the remaining eighty percent of commodities that are slow-moving, and based on a make-to-order production. A third way of implementing leagile strategy is surge/base demand segregation methodology whereby lean strategy is recommended for products whose demands are forecastable whereas the agile approach is commended for commodities whose demand is less predictable. Hidayat and Hendrix 64 conducted an empirical study on the creation of a competitive advantage strategy through Innovation, Entrepreneurship, and Orientation of the Market in SMEs in Indonesia. The study population was 5.7 million and the sample size was 150 industries. Data was collected vide questionnaires and analysis were done through Structural equation modeling (SEM). The findings revealed the orientation of the market has the strongest effect on the creation of competitive advantage strategy in comparison to innovation and entrepreneurship. Whereas the study concentrated on competitive advantage strategy creation through innovation, entrepreneurship, and market orientation, the present study was different because it assessed leagile strategy’s effect on the competitive advantage of construction companies’ supply chains, utilizing a population of 4,015 and a sample size of 323. Additionally, data analysis was done differently using the SPSS Software version 22.

Alzoubi and Ahmed 65 investigated the mediating role of SC collaboration on the association between sustainable supply chain strategies and competing priorities. The findings confirmed there was a relationship between sustainable supply chain strategies and their impact on competitive priorities. The study was conducted among Jordanian Pharmaceutical companies different from the current study which surveyed construction companies’ supply chains in the capital city of Kenya. Furthermore, while the research’s population had 23 companies where top managers were the respondents and data analysis involved the use of the Structural Equation Modelling (SEM) technique, the current investigation was dissimilar because the data analysis was done vide the SPSS software version 22 and linear regression model.

Research done by Fadaki et al. 66 on determining the key design driver effect of uncertainty on leagile strategy in the supply chain of 299 Australian firms indicated that it had a direct and positive impact. The scholars emphasized that consideration of combined lean and agile strategies would generate greater profitability. The current study was dissimilar as it focused on investigating the leagile strategy-competitive advantage association in construction companies’ supply chains applying SPSS version 22 and a linear regression model for data analysis. An empirical analysis was conducted by Zimmerman et al. 3 on SC strategies, product characteristics, environmental uncertainty, and performance association in 329 companies. Applying cluster analysis and one-way ANOVA, the results showed the four types of SC strategies were adopted by the companies. It was further revealed that companies that implemented leagile strategy attained higher performance whereas those who adopted the traditional SC concepts recorded the lowest. The present study had a different focus by assessing how the leagile strategy influences the competitive advantage of construction companies. The study analyzed data using cluster analysis different from the current research where a linear regression model was employed.

Li et al. 67 conducted a study in the Chinese textile sector to determine the current approaches crucial for companies in attaining competitiveness in marketplaces globally. The outcomes exposed that vendor selection centered on leagile practices is crucial in making the supply chain operations of focal industries stronger particularly for major suppliers of multinational companies. The current investigation was dissimilar in that it examined the leagile strategy’s effect on competitive advantage in construction companies’ supply chains. Ahmed 68 studied the integration of leanness and agility effectively generate competitive advantage among manufacturing firms. It was unearthed that lean strategies struggle in terms of flexibility. It was found that joining the competencies of the two approaches enhance the competitive capabilities of the firm.The study assessed the effect of lean and agile approaches’ assimilation on competitive advantage whereas this investigation determined the impact on competitive advantage by leagile strategy.  Nagaaba 69 conducted an empirical survey to validate a leagile manufacturing model and to establish its impact on performance in small and medium factories in Uganda. The results unearthed that time-based leagile manufacturing are associated, though different regarding their competencies as well as the ethical positioning. Besides, it was exposed that Uganda’s SME factories which implement leagile practices don’t increase their performance. The findings were attributed to the inadequacy of resources in small and medium factories. While the survey was done to evaluate leagile manufacturing model’s impact on SME factories’ performance, the current study was different because the investigation assessed the leagile strategy’s effect on competitive advantage in construction companies’ supply chains. Alfalla-Luque 70 analyzed the impacts of the supply chain’s agility, alignment, and adaptableness on the competitive advantage of 151 manufacturing plants utilizing a consistent partial least squares structural equation model for data analysis. The study further endeavored to determine whether the aforementioned variables had both individual and joint effects on competitive advantage attainment in the SCs. The findings revealed a significant joint effect of the three variables on competitive advantage. Adaptability had a major effect on all the attributes of competitive advantage. SC alignment influenced most of the dimensions and agile approach influenced the monetary aspect of competitive advantage. That study analyzed the impacts of supply chain agility, alignment, and adaptability on competitive advantage using structural equation modeling for data analysis, though this research was dedicated on assessing the impact on competitive advantage by leagile approach in the construction companies’ supply chains using SPSS software version 22 and linear regression model to analyze its data. Furthermore, the current utilized different competitive advantage dimensions.     

A study of Egypt Air was conducted by Al-Romeedy 71 to demonstrate how important strategic agility is in the achievement of competitive advantage. The results exposed that competitive advantage was influenced significantly by strategic agility in Egypt Air by impacting considerably on delivery, reliability, innovation, processes, flexibility, service quality and costs respectively. Further findings indicated that Egypt air was agile. Agility assists airlines to survive, increase competitiveness, and achieve competitive advantage and excellence in the wake of a volatile labor market. While the study was focused on demonstrating how important strategic agility is in the achievement of competitive advantage in the airline industry, the current study investigated the leagile strategy’s impact on the competitive advantage in the context of construction companies’ supply chains.  

Roh et al. 72 identified information sharing with customers, supplier collaboration, a pull production system, and improved manufacturing technology utilization, as key variables in implementing responsive SCs. The contextual factors identified were firm’s industry, size, as well as customer and supplier base.  These scholars held that the aforementioned factors were more important than the firm’s location. They further determined that a responsive SC comprises global inter-organizational integration which improves the capabilities of pull production. The study focused on identifying key variables in the implementation of responsive chains while the current study was different because it investigated the leagile strategy’s effect on competitive advantage in construction companies’ SCs. Abdulwase et al. 73 reviewed the literature on the business strategy’s role in creating competitive advantage in the company. It was revealed that business strategy aids in gaining market share, hence the creation of competitive advantage. It was also found the market share off a firm is dependent on the implementation of an appropriate strategy. There was a difference from the current study since it was an analysis of literature while the present research was an empirical survey using quantitative descriptive cross-sectional survey design in assessing the leagile strategy’s impact on competitive advantage in the SCs of the companies in the construction industry.

Methods

This research applied a cross-sectional analysis across a population comprising of 4,015 construction companies classified into three strata as per Table 2.

Table 2: Size of Population, and Sample for the strata     

Stratum

Population size

Calculation

Sample size

Construction companies (NCA1-8 Contractors, 2018)

3,787

3787×323/4015

305

Construction companies (KAM  members 2018)          

112

112×323/4015

9

Construction companies (KPDA  members 2019 )

116

116×323/4015

9

Total

4, 015

 

323


The first stratum consisted of 3,787 construction companies who were contractors registered under NCA 1-8 in 2018 obtained from the National Construction Authority(NCA) of Kenya offices on 5th August 2019. The second stratum comprised 112 construction manufacturing companies in the sectors of building, construction, and quarrying, which were members obtained from the directory of the Kenya Association of Manufacturers (KAM) in 2018. Category three consisted of 116 end-user construction companies who were members of the Kenya Property Developers Association (KPDA) in 2019. The unit of analysis is represented by the individual entity measured by the study variables74. In this study, the unit of analysis consisted of the individual 4,015 companies.  

The sample size of 4,015 firms was determined by utilizing the formula as per the proposition of Mugenda and Mugenda75. The scholars posit that a sample size of at least 70% of the study population is sufficient in yielding dependable outcomes. The formula is given as: 

Where;

n = sample size

z = z-score at confidence level α = 0.05 (which implies z = 1.96)

 p = inclusion proportion or probability which in this case is 70%

d = permissible marginal error (the level of statistical significance, set at α = 0.05).

Thus the sample size is as follows;

A stratified random sampling procedure was utilized whereby first the proportions were determined, then simple randomization of the sample within each stratum was executed until the proportionate sub-sample size is realized. To obtain the number of firms in each stratum, stratified random sampling was utilized to ensure proportionate allocation of sample sizes:  

Where;

ni = Number of firms to be sampled from each stratum

= Overall sample size, which is 323

Ni = Number of firms in the given stratum
 
N = Number of firms from the sampling frame.

Self-administered questionnaires containing close-ended questions were utilized to collect data by dropping off, picking up, and emailing because they are good for surveys in providing better chances of achieving a high response rate and are much easier to statistically analyze. Measurement of the questionnaire responses was done vide the use of a five-point Likert-type scale and inquiries on leagile strategy were formulated using eleven descriptive statements. On Competitive Advantage, nine descriptive statements were asked requesting respondents to indicate the degree of competitive advantage achievement in their respective companies. Cronbach’s Alpha calculation was performed to determine questionnaire reliability. It was revealed that leagile strategy has an alpha of 0.896, and competitive advantage of 0.864. The results show acceptable levels of reliability because the reliability coefficients of the constructs were above (0.7) 76. Kaiser-Meyer-Olkin (KMO)’s and Bartlett’s verified the research instrument’s validity. The KMO statistic is 0. 712, which is more than 0.5. It rounds off to 1, proving the research instrument was valid. From testing the sphericity utilizing Bartlett's test, the results indicate p-value = 0.000 which is less than 0.05, proof of a valid research instrument. The study’s questionnaire was also subjected to expert judgment to ensure content validity. The target respondents in this study consisted of Managers and Directors in the procurement department or the representatives. The same information collection approach was employed in all the three categories. A Statistical Package for the Social Sciences (SPSS) version 22 was employed for statistical analysis to generate descriptive and inferential information.

Results and Discussion

Results

Overall, a total of 260 responses were received from the data collection process and the inclusive response rate of the study in all three categories of construction companies was 80.50 percent details are expressed n Table 3.

Table 3: Rate of Response 

Category

Size of Sample

No. of Companies

Rate (%)

 

NCA1-8 Contractors 2018

305

243

79.6

KAM members 2018

9

9

100

KPDA members 2019

9

8

88.8

Totals

323

260

80.5


Descriptive statistics

The descriptive statistics obtained were; the position held by respondents, the area of specialization of the company, and responses obtained on each variable in this survey study. During the survey, the present respondents’ position in the company was determined and indicated in Table 4. It was observed that the majority of those responding had the capability of adequately providing the information required during the data collection in the survey study.

Table 4: Respondents’ Position in the company

Designation

Number

 (%) 

Director

36

13.8

Manager

70

26.9

Project Manager

121

46.5

Sales Administrator/Executive

14

5.4

Accountant

5

1.9

Administrator

1

.4

Human Resource

3

1.2

CEO/MD

3

1.2

Site Supervisor

3

1.2

Engineer

2

.8

Licensed Electrician

1

.4

Finance Officer

1

.4

Total

260

100


Table 5 depicts an analysis of their area of specialization and the outcomes point out that the majority of the companies (61.6%) were in the area of building and road works, (11.9%) were in water works, and (6.5%) combined all the works.

Table 5: Area of Specialty

Specialty

Number

(%)

Building Works

91

35

Road Works

40

15.4

Mechanical Engineering Service

17

6.5

Water Works

31

11.9

Electrical Engineering Service

14

5.4

All of these

17

6.5

Building and Road Works

29

11.2

Painting Works

1

 .4

Manufacturing

9

3.5

Supply of Industrial & Construction Goods

 2

.8

Building and Water Works

1

.4

Property Management

8

3.0

Total

260

100

 

From Table 5, it was also discovered that (5.4%) of the construction companies were specializing in the area of Electrical Engineering Services, (3.8%) in manufacturing and supply of industrial/construction goods, and (3%) were in property management. Further, it was found that (0.4%) of the construction companies were specializing in painting works while (0.4%) were in both building and water works. Table 6 depicts the outcome of the analysis of the Responses to the Leagile Strategy.  

Table 6: Responses

Indicators

Mean

SD

CV%

Sk

Entity keeps a minimum inventory level to eliminate waste

3.71

.851

22.9

-.28

Entity focuses on the highest priority goal to eliminate waste

3.99

.740

18.5

-.16

Entity delivers products and services that conform to customers' quality requirements

4.18

.781

18.7

-.57

Entity practices continuous quality improvement

4.19

.762

18.2

-.45

Entity practices economies of scale to achieve volume discounts

4.18

.816

19.5

-.77

Entity maintains a large volume of managerial expertise

4.14

.863

20.8

-.56

Entity maintains cooperation with suppliers and all service providers

4.19

.767

18.3

-.34

Entity strategically plans its activities in advance

4.22

.752

17.8

-.55

Entity operates using IT and market intelligence

4.17

.811

19.4

-.49

Entity quickly responds to changes in customer's requirements

4.09

.793

19.4

-.30

Entity maintains a flexible workforce, processes, and technologies

4.30

.801

18.6

-.77

Average

4.12

0.79

19.3

-.48


Table 6 indicates the average mean score of the eleven statements was 4.12. This result shows a general agreement among the respondents of surveyed firms that leagile strategy leads to competitive advantage. Table 7 designates the average mark of the nine statements applied to determine the degree of competitive advantage realization. was 4.10. This result shows a general agreement among the respondents of surveyed firms.

Table 7: Responses

Indicators

Mean

SD

CV%

Sk

Entity offers comparatively lower prices than its competitors

3.86

.891

23.1

-.31

Entity has been reducing its overall costs more than its competitors

3.88

.850

21.9

-.42

Entity focuses on offering benefits to customers more than its competitors

4.17

.738

17.7

-.35

Entity offers high product variety than its competitors

4.04

.760

18.8

-.33

Entity offers products and services with unique features than competitors

4.06

.776

19.1

-.30

Entity offers products and services with superior qualities than competitors

4.18

.782

18.7

-.38

Entity offers an especially high service level to its customers

4.13

.809

19.6

-.42

Entity ensures speedy delivery to customers

4.25

.731

17.2

-.48

Entity maintains short lead times

4.37

.720

16.5

-.74

Average

4.10

0.89

19.2

-0.31


Inferential statistics

Linear regression model was employed in hypothesis testing. A linear regression model assumes that data is normally distributed and variables are not auto-correlated. Appropriate tests were done to confirm normality and autocorrelation respectively and to conform to the assumptions. The outputs of the regression analysis like the regression coefficients and their corresponding significance values were used to test the study hypotheses.  All decisions were made at a 5% level of significance and the corresponding null hypotheses were rejected whenever the matching p-value was less than 0.05. Also, using the t-statistics value, the null hypothesis was rejected if the computed t-value was greater than the tabulated t-value. The tabulated t-value was obtained at a 5% level of significance and (n-1) degrees of freedom, where  is the number of observations (was 260). From the t-table, the t-value at 0.05 level and 259 degrees of freedom are 1.968. Therefore, the null hypothesis would be rejected whenever the computed t-value > 1.968.

In this study, the expressed hypothesis was tested employing a regression model represented as CA = β0 + β1LS +ε

Where:

CA =   Competitive Advantage (Dependent variable)

LS =    Leagile Strategy (Independent variable)

β0   =    Regression constant

β1 =     Regression coefficient for Leagile Strategy

ε =       Error term

The regression analysis yielded results that were divided into three parts as follows: Model’s Summary, Analysis of Variance (NOVA), and Regression Coefficient. Table 8 reveals outcomes of direct effect model summary.   

Table 8: Results of the Model’s Summary  

Model Summary

R

R2

Adjusted R2

Std. Error

F Change

p-value/Sig.

.261

.068

.065

.967

18.922

.000

Dependent Variable: Competitive Advantage

Predictors: (Constant), Leagile Strategy


From Table 8, the analysis show the explained variation (R2) value = 0.068. This translates to 6.8% and the calculated F-statistic value = 18.922. The value R2 implies that leagile strategy, as a predictor variable, explains only 6.8% of the total variations in the dependent variable. The remaining 93.2% of the variations in the competitive advantage of a firm are attributed to other factors other than leagile strategy. The second part of the regression model is the analysis of variance (ANOVA) which is shown in Table 8.  

Table 9: Results of ANOVA: Leagile Strategy and Competitive Advantage

ANOVA

 

Sum of Squares

df

Mean Squares

F-statistic

p-value/Sig.

Regression

17.699

1

17.699

18.922

.000

Residual

241.320

258

.935

 

 

Total

259.019

259

 

 

 

Dependent Variable: Competitive Advantage

Predictors: (Constant), Leagile Strategy


Table 9 shows the outcomes of regression analysis using ANOVA, which was used to check for model fittingness to the data.  The ANOVA results showed the observed p-value = 0.000 which was less than 0.05. This p-value = 0.000, therefore, indicates the model’s fittingness to the data and that the leagile strategy significantly predicts the competitive advantage of a firm. The third part of the regression model is the analysis of regression coefficients which is shown in Table 10.

Table 10: Results of Regression Coefficients: Leagile Strategy and Competitive Advantage.

Regression Coefficients

 

Beta

Std. Error

t-statistics

Sig.

(Constant)

.00036

.060

.006

.995

Leagile Strategy

.261

.060

4.350

.000

Dependent Variable: Competitive Advantage

Predictors: (Constant), Leagile Strategy


From Table 10, the results of the regression coefficient indicated, the constant term was observed to be 0.995 and a corresponding standard error of 0.06.  It was observed that the constant term was insignificant at the 5% level because the resultant P-value = 0.995>0.05). For leagile strategy which was the independent variable, the regression coefficient was observed to be 0.261 (Standard Error = 0.060) and a corresponding t-statistics = 4.350 and p-value = 0.000. The P-value = 0.000 shows that leagile strategy had a significant influence on the competitive advantage of a firm because it’s less than 0.05. Testing of Hypothesis H01 was done to determine the significance of the direct effect of leagile strategy on competitive advantage using the corresponding P-value in Table 10. A significant effect is indicated by a P-value less than 0.05.

Observations on Table 10 illustrates that the resultant P-value of leagile strategy = 0.000< 0.05) inferring it had a significant influence on competitive advantage of a firm. Consequently, H01, the null hypothesis was rejected at 5% level of significance and a conclusion was drawn that leagile strategy, significantly influences the competitive advantage. The same inference was also deduced using the t-statistics. In leagile strategy, the observed t-value was 4.35, which was greater than 1.968. As 4.35 > 1.968, the null hypothesis H01, was rejected. This implies that leagile strategy significantly influences the competitive advantage of a company. The regression coefficient for leagile strategy which was observed to be = 0.261 advises that any improvement or positive adjustment in leagile strategy by a single unit results in an enhancement in competitive advantage by 0.261 units. This particular observation infers that the regression model of competitive advantage on leagile strategy (or direct effects model) can be expressed as follows: Competitive Advantage = 0.00036 + .261 LS. Where LS= Leagile Strategy

Discussion

This study was intended to evaluate the Leagile Strategy’s influence on Competitive Advantage. The hypothesis H01, stated that leagile strategy has no significant influence on competitive advantage was tested using linear regression analysis. It was determined that leagile strategy significantly influenced competitive advantage as the obtained p-value was less than 0.05. The p-value was less than 0.05 and inferred that the linear regression model had correct fittingness to the data. Consequently, H01, the null hypothesis was rejected at a 5% level of significance and a conclusion was drawn that leagile strategy, as a predictor variable, significantly influences the competitive advantage of companies in the studied context. The outcome is in agreement with the findings of Arasa, Mwaura, and Ngui 77.  The outcome is in line with suggestions by Hill & Jones 78 that companies in possession of superior innovation, efficiency, customer responsiveness, and quality attain competitive advantage. The results of this study are supporting the outcome of Pono et al. 79 who investigated the effect of supply chain strategy on competitive advantage and company performance in 210 SME industries in West Sulawesi Province, Indonesia.

Conclusion

Leagile strategy leads to the achievement of competitive advantage when companies are confronted with the rapidly changing business environment where adequately satisfying the high levels of customers’ quality and service demand have become challenging. Implementation of leagile strategy helps construction companies to address those challenges caused by the rapidly changing business environment. Companies embracing leagile strategy attain competitive advantage in terms of cost reduction, product differentiation, higher customer service level, and shorter lead times. Leagile strategy improves efficiency in the utilization of resources and technological innovations which has become more important in introducing new products at a matching pace. Leagile strategy helps construction companies in improving responsiveness and delivery time to meet changing consumer preferences. Companies gifted with flexible knowhow, personnel, and practices have the capability of being ahead of competitors in the construction industry. are able to be competitive. Moreover, it’s advisable that companies yearning to outperform competition need to embrace activities of strategic planning of activities, removal of waste, teamwork and volume production.

Implications for Theory

The results of this study are helpful for future studies on leagile strategy, competitive advantage, and their measurement. It’s useful in theory advancement by confirming there is a relationship between leagile strategy and competitive advantage. The leagile possesses consisting of flexibility, cost efficiency, and response speed capabilities are important sources of competitive advantage. The leagile strategy capabilities empower companies to integrate, build and reconfigure internal and external resources to address and shape a speedily shifting business environment. These implications support the proposition of dynamic capabilities theory that firms are capable of attaining competitive advantage when they possess the competencies of identifying opportunities, seizing them and reallocating resources as appropriate. The importance of beneficial network of relationships between clients and service providers in achievement of competitive advantage supports the applicability of network theory in construction SCs. The connectivity between companies in the supply chain becomes special and beneficial because they allow direct communications between companies, enabling coordination between buyers and suppliers.   The research enhances the literature on dynamic capabilities theory emphasizing its relevance in explaining how firms in the construction industry supply chains create competitive advantages. It equally enlarges the literature on networks theory highlighting its applicability in explaining how the interconnectivity of firms in the construction industry supply chains enables the achievement of competitive advantage.

Implications for Knowledge

This research present the most current information added to the literature on attainment of competitive advantage through leagile approach in companies. The study also compliments knowledge about methodology in terms of the use of quantitative descriptive research design, a valid and reliable instrument using a five-point Likert Type scale for measurement as well as the Statistical software for social sciences version 22 to confirm the leagile strategy’s influence on competitive advantage. This study increases the contextual literature on the adoption of leagile strategy in the supply chains for improving competitiveness and survival in a tumultuous environment. The study also adds to the knowledge that leagile strategy alone does not fully influence competitive advantage.

Implications for Practice

Leagile strategy capabilities for the achievement of competitive advantage are recognizable from this study and useful for practitioners. Company managers and chief executives become cognizant of how businesses improve competitiveness, and performance through the embracing of leagile strategy. This research is useful to managers and practitioners on the importance of adopting leagile strategy for the achievement of competitive advantage and alleviating various managerial problems confronting construction companies.


Implications for Policy

Policymakers may also benefit by utilizing the findings to improve the competitiveness of companies in the sector and beyond by utilizing the results of this study to implement policies for reforms.

Limitations of the study

The outbreak of the COVID -19 pandemic caused several drawbacks to this research and specifically in the restrictions placed on accessing buildings, triggering delays in receiving feedback on the questionnaires.

Areas for Future Research

Future studies should be carried out in different contexts utilizing longitudinal strategy. The use of different methodology such as mixed-methods approach including mutual application of the questionnaire and observation may breed different discoveries.  The determination of the diverse factors influencing competitive advantage besides leagile strategy should also be done in future investigations.  

Conflict of Interest

The author(s) declares no conflict of interest.

Funding Sources

The author(s) received no financial support for research, authorship, and/or publication of this article.

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