Innovative and Quality-Enhancing Capabilities as Tools for attaining Competitive Advantage among Medium-Sized Enterprises in Juba, South Sudan

Abstract

The first objective of this study was to establish the effect of innovative capabilities on the competitive advantage of MSEs in Juba, South Sudan. The second objective was to examine the influence of quality-enhancing capabilities on the competitive advantage of MSEs in Juba, South Sudan. The resource-based theory, dynamic capability theory and the competitive advantage theory anchored the study variables. This study adopted a descriptive design, enabling the researcher to apply statistical data analysis techniques. The study adopted proportionate stratified and simple random sampling techniques in order to address the absence of homogeneity between the different strata of the sectors of the MSEs. The target population was 491 MSEs operating in Juba, South Sudan. Yamane formula was used to calculate the sample size of 246 MSEs. Questionnaires were used to collect data that was analysed using descriptive statistics and multiple linear regression. The results indicated that there was positive and statistical significance between innovative capability and the competitive advantage of MSEs in Juba, South Sudan (β = 0.817, t = 11.165, p < 0.05). The results also found that there was a positive and statistical signification between quality-enhancing capabilities and the competitive advantage of MSEs in Juba, South Sudan (β = 0.329, t = 7.227, p < 0.05). Therefore, the study concluded that innovative and quality-enhancing capabilities were important factors influencing competitive advantage among MSEs in Juba, South Sudan. The study recommended that managers of MSEs in Juba, South Sudan, should ensure that they continually enhance their innovative and quality-enhancing capabilities. These capabilities could be inculcated and improved through a management culture that promotes innovation and quality amongst their employees through training, mentoring and coaching.