Moderating Effect of Competitive Intensity on the Relationship Between Human Capital and Competitive Advantage of Regional Airlines Operating from Kenya
DOI:
https://doi.org/10.53819/81018102t5329Abstract
Regional airlines operating from Kenya face significant challenges in maintaining their competitive advantage due to intense competition from domestic and international carriers, particularly European and Middle Eastern airlines, which dominate the Kenyan airspace. Therefore, the current study examined the moderating effect of competitive intensity on the relationship between human capital and competitive advantage of airlines in Kenya. The study was informed by human capital theory. The study adopted an explanatory research design, targeting 764 employees from 10 IATA-accredited airlines in Kenya, with a sample size of 263 determined using Yamane's formula. The data was analyzed through inferential statistics. The model fitness results showed that the interaction between human capital and competitive intensity significantly explains 64.9% of the variations in competitive advantage, as indicated by the R-square value of 0.649. The regression results indicated that the interaction between human capital and competitive intensity has a positive and significant impact on competitive advantage. The study concludes that competitive intensity significantly moderates the relationship between human capital and competitive advantage of regional airlines operating from Kenya, with the impact of human capital becoming stronger in highly competitive environments. The study recommends that regional airlines operating from Kenya should prioritize human capital development as a key strategic objective, particularly in highly competitive markets. Airlines should focus on enhancing employee capabilities, promoting skill development, and fostering a culture of continuous learning and improvement, while also considering the level of competitive intensity in their strategic human capital management decisions.
Keywords: Human capital, competitive advantage, regional airlines, Kenya
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