Mediating Role of Competitive Advantage on the Relationship between Smart Technology Usage and Performance: Empirical Evidence from Non-Governmental Organizations in Nairobi City County, Kenya

Kiratu Patrick Ngigi, Kaburu Franklin Kinoti, Tumuti Joshua Wachira

Abstract: In the increasingly competitive business environment, organizations spend a lot of time on tangible and intangible resources seeking competitive advantage and superior performance. Prior studies investigated the effect of competitive advantage on organizational performance, particularly in developed countries, while there is paucity of similar studies focusing on non-governmental organizations in sub-Sahara Africa. This study examined the mediating role of competitive advantage between smart technology usage and performance. Competitive advantage was measured using services differentiation, market innovations and services quality. Smart technology usage was assessed by social, process, financial and mobile cloud computing usages. Non-governmental organizations performance was assessed by fundraising efficiency, financial transparency, programs outcome and partnerships. The study was anchored on the Dynamic Capabilities Theory. A structured questionnaire was used to collect data from 170 non-governmental organizations operating in Nairobi City County, Kenya. Data was analyzed using descriptive and inferential statistics. The study findings revealed that competitive advantage fully mediates the relationship between smart technology usage and performance of non-governmental organizations in Kenya. Hence, managers are advised to optimize smart technology usage by creating necessary working environment and strategies that encourage innovativeness and value creation for stakeholders to create sustainable competitive advantage and superior organizational performance.

Keywords: Competitiveness, Performance, Innovation, Technology, Stakeholder