Intangible Assets for Sustainable Competitive Advantage in Institutes of Higher Learning: A Case of Kenya
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Date
2014
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Publisher
Msingi Journal
Abstract
Resources and capabilities are the building blocks upon which an organisation can create
and execute value-adding strategy so that it earns reasonable returns and achieves strategic
competitiveness (Management, 2012). A company’s resource strength forms the cornerstones
of strategy because they represent the company’s best chance for market success (Duncane,
Ginter, & Swaye, 1998). This article seeks to find out what kind of resources and capabilities
thriving institutes of higher learning in Kenya possess and build to make them stay afloat
amidst stiff competition. The ever-changing tastes and customer needs and preferences have
significant influence on how businesses shape their strategy to compete with other industry
players. The education industry in Kenya has not been spared from this trend. Colleges and
universities are facing demanding customers who seek customised education services
tailored to their own pace, preferred location and time. While some colleges and universities
have thrived because they have taken advantage of the opportunities in their environment
some have closed doors while others have resorted to unethical ways to attract students. The
play-field has been left to those colleges and universities that have reengineered their
organisational activities to address the ever-changing needs and preferences of customers in
order to have a competitive edge in the industry. This article discusses the value of intangible
assets, anchoring its arguments on the resource based view of the firm. We argue that reputation, organisational leadership, and collaboration are vital for institutes of higher
learning to thrive. It recommends that institutes of higher learning should concentrate on
building resource strengths and capabilities that make them gain and sustain competitive
advantage. We propose action research to continuously improve organisational processes.
We further propose a conceptual framework that may lead institutions of higher learning to
gain and sustain competitive advantage. By focusing on building intangible assets, which are
less prone to imitation, this article will address the challenges of competition in the higher
education industry.
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Keywords
Intangible, Competitive Advantage, Higher Learning