The Role of Strategic Planning and Productivity in Predicting Competitive Advantage

Abstract

Studies have been conducted to determine the nature of the relationship between strategic planning and competitive advantage, with some studies presenting that strategic planning has an impact on the organisation's competitive advantage, while other studies present that strategic planning has no impact on competitive advantage. Therefore, this research was conducted to settle this existing inconclusive debate by including a contingency variable as a mediator of this relationship using data collected from management employees of TAZARA. The research study contributes to the literature by determining the mediating effect of productivity on the relationship between strategic planning (SP) and competitive advantage. Reliability, model fit and validity were tested using factor analysis, principal component analysis and regression analysis using Jamovi software. The results of the study show that there is a positive significant relationship between strategic planning (SP) and competitive advantage, and also between productivity and competitive advantage. Productivity was found to partially mediate the relationship between strategic planning and competitive advantage. The results of this study would help decision makers to focus more on productivity when implementing strategic planning in order to survive this tense, fierce competition of the 21st century. Replication of this study in other industries is recommended. Future studies should also include other moderating and/or mediating variables.