Strategic Agility and Sustainable Competitive Advantage: How to Leverage Top Management Team Characteristics

Abstract

Ubiquitous disruptive innovations and technologies, frequently changing consumer behaviour, and evolving market dynamics in Kenya, have compelled television stations to constantly explore innovative ways to achieve long term business sustainability. Firms must be ambidextrous; balancing the tensions of excelling in current businesses while exploring opportunities for future growth. This requires top leadership teams that are well suited to the challenge of steering organisations in disrupted business contexts. This paper investigated the effect of top management team characteristics on the linkage of strategic agility and sustainable competitive advantage of licensed television stations in Kenya. The research was underpinned by the dynamic capabilities, resource-based view and upper echelons theories. A descriptive cross-sectional survey was employed and primary data was collected using a semi-structured questionnaire. Data from 210 licensed television stations that were operational at the time of the study was analysed using structural equation modelling (SEM).The results of the study indicated that top management team characteristics mediated the nexus  between strategic agility and sustainable competitive advantage of licensed television firms in Kenya. The implication is that, to achieve sustainable competitive advantage, it is crucial for the top management team to possess specific attributes, including a balanced mix of both young and experienced members, diversity in functional backgrounds (especially those with knowledge of disruptive technologies and innovations), varying educational levels, and a mix of long-tenured and new managers. Key Words: Top Management Team Characteristics, Strategic Agility, Sustainable Competitive Advantage, Licensed Television Stations, Kenya