Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya: Data Analysis continue, Conclusiona. Dependent Variable: Competitive Advantage

b. Predictors: (Constant), Strategic Planning

Further analysis as shown in Table 4 shows the beta coefficient parameters of the test of the significance of the constant Jjt, and x± in the model y1 = The results indicate an insignificant constant of =1.251 and a p =01143. The coefficient ^ = &.109 suggests that for a unit change in strategic planning practices, there is 0.109 positive change in the competitive advantage of a firm. Further, it is observed that the strategic planning variable is significant as the p Tfalue = ЕШЕШ1 is less than the level of significance =0.05. This suggests that strategic planning is a variable that could be used to assess the competitive advantage of a firm.

Similar studies by Lieldholm, 2001; and Kargar and Parnell (1996) concluded that strategic planning is a source of competitive advantage and that the sector in which a firm operates significantly explains comparative advantage of the industry. This suggests that strategic planning has a significant positive effect on organisational performance (Andersen, 2000).

a. Dependent Variable: Competitive Advantage

The study examined strategic planning practices among ICT SMEs. The key strategic planning variables examined entailed: formality of strategic planning; strategic planning processes; strategy adoption, and strategy implementation and control.

The results suggest that a significant number of SMEs in the ICT sector employ strategic planning practices and have written strategic plans. Previous studies suggest that firms having formal strategic planning outperform those that do not (Allison and Kaye, 2005; Akinyele 2007). Having written strategic plans for instance, suggests that a firm has a framework from which it can measure and evaluate its progress and direct and control its business activities. In this regard, strategic planning and its processes can be considered as a learning tool for SMEs. This is consistent with the underlying theories, namely; resource-based view (RBV), systems theory, and chaos theory that advance that formal strategic planning and its underlying processes can constitute a source of sustained competitive advantage.

Table 4. Coefficient parameters of competitive advantage versus strategic planning

Model CoefficientsB Std. Error t Sig.
1 (Constant) 1.251 .865 1.447 .149
Strategic .109 .016 6.959 .000