Competitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilities
Abstract This study explores the effect of competitive advantage on sustainability within Ghanaian microfinance institutions (MFIs), emphasizing the mediating role of strategic capabilities. We conducted a quantitative analysis using survey data from 500 managers representing 150 MFIs in Ghana, anal...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2024-09-01
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| Series: | Future Business Journal |
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| Online Access: | https://doi.org/10.1186/s43093-024-00390-w |
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| author | Mensah Marfo Abiel Ashitey ARMAH Eleazer Fianko Ofei Isaac Sewornu Coffie Linda Adadevoh Sanjeet Kumar Pattnaik Carl Asante Reindoph Edward Annan |
| author_facet | Mensah Marfo Abiel Ashitey ARMAH Eleazer Fianko Ofei Isaac Sewornu Coffie Linda Adadevoh Sanjeet Kumar Pattnaik Carl Asante Reindoph Edward Annan |
| author_sort | Mensah Marfo |
| collection | DOAJ |
| description | Abstract This study explores the effect of competitive advantage on sustainability within Ghanaian microfinance institutions (MFIs), emphasizing the mediating role of strategic capabilities. We conducted a quantitative analysis using survey data from 500 managers representing 150 MFIs in Ghana, analyzed through structural equation modeling. Our findings indicate that competitive advantages and strategic capabilities have a positive significant influence on MFI sustainability. Additionally, strategic capabilities were found to mediate the relationship between competitive advantage and sustainability within Ghanaian MFIs. This study expands the theoretical framework by incorporating cost differentiation, pricing strategy, focus strategy, market strategy, efficient operations and risk management, innovation in product offerings, target market considerations, and client relationship management. We highlight how MFIs can maintain competitiveness through technology, partnerships, training, career development, and knowledge transfer. This mediated relationship underscores the crucial role of strategic capabilities in achieving sustainable operations. The study provides a conceptual framework for understanding MFI sustainability and offers a roadmap to enhance competitive advantage. By integrating elements from the competitive advantage theory and extending the resource-based view theory, this research contributes to the existing knowledge by clarifying the connections between competitive advantage and sustainability in the context of MFIs. Furthermore, the study addresses the dynamics of competitive advantage, strategic capabilities, and sustainability in a context with limited research. It offers practical implications for policymakers and practitioners, providing insights that can inform targeted interventions to enhance capacities and foster sustainability in the microfinance sector. |
| format | Article |
| id | doaj-art-8b8ece45a81a4ab18ae2cb8741ee4f47 |
| institution | DOAJ |
| issn | 2314-7202 2314-7210 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj-art-8b8ece45a81a4ab18ae2cb8741ee4f472025-08-20T03:10:18ZengSpringerOpenFuture Business Journal2314-72022314-72102024-09-0110111810.1186/s43093-024-00390-wCompetitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilitiesMensah Marfo0Abiel Ashitey ARMAH1Eleazer Fianko Ofei2Isaac Sewornu Coffie3Linda Adadevoh4Sanjeet Kumar Pattnaik5Carl Asante Reindoph6Edward Annan7Department of Business, Accra Institute of Technology (AIT)Department of Business, ARMAH Accra Institute of Technology (AIT)Department of Accounting, Accra Institute of Technology (AIT)Department of Marketing, Accra Institute of Technology (AIT)Department of Business, Nobel International Business School (NIBS)Department of Management, Management University of Africa (MUA)Department of Accounting and Finance, Accra Institute of Technology (AIT)Department of Business, Accra Institute of Technology (AIT)Abstract This study explores the effect of competitive advantage on sustainability within Ghanaian microfinance institutions (MFIs), emphasizing the mediating role of strategic capabilities. We conducted a quantitative analysis using survey data from 500 managers representing 150 MFIs in Ghana, analyzed through structural equation modeling. Our findings indicate that competitive advantages and strategic capabilities have a positive significant influence on MFI sustainability. Additionally, strategic capabilities were found to mediate the relationship between competitive advantage and sustainability within Ghanaian MFIs. This study expands the theoretical framework by incorporating cost differentiation, pricing strategy, focus strategy, market strategy, efficient operations and risk management, innovation in product offerings, target market considerations, and client relationship management. We highlight how MFIs can maintain competitiveness through technology, partnerships, training, career development, and knowledge transfer. This mediated relationship underscores the crucial role of strategic capabilities in achieving sustainable operations. The study provides a conceptual framework for understanding MFI sustainability and offers a roadmap to enhance competitive advantage. By integrating elements from the competitive advantage theory and extending the resource-based view theory, this research contributes to the existing knowledge by clarifying the connections between competitive advantage and sustainability in the context of MFIs. Furthermore, the study addresses the dynamics of competitive advantage, strategic capabilities, and sustainability in a context with limited research. It offers practical implications for policymakers and practitioners, providing insights that can inform targeted interventions to enhance capacities and foster sustainability in the microfinance sector.https://doi.org/10.1186/s43093-024-00390-wCompetitive advantageCompetitive advantage theoryResource-based view theoryStrategic capabilitiesSustainability of microfinance institutions |
| spellingShingle | Mensah Marfo Abiel Ashitey ARMAH Eleazer Fianko Ofei Isaac Sewornu Coffie Linda Adadevoh Sanjeet Kumar Pattnaik Carl Asante Reindoph Edward Annan Competitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilities Future Business Journal Competitive advantage Competitive advantage theory Resource-based view theory Strategic capabilities Sustainability of microfinance institutions |
| title | Competitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilities |
| title_full | Competitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilities |
| title_fullStr | Competitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilities |
| title_full_unstemmed | Competitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilities |
| title_short | Competitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilities |
| title_sort | competitive advantage and sustainability in ghanaian microfinance institutions the mediating role of strategic capabilities |
| topic | Competitive advantage Competitive advantage theory Resource-based view theory Strategic capabilities Sustainability of microfinance institutions |
| url | https://doi.org/10.1186/s43093-024-00390-w |
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