Realizing Competitive Advantage Through Leagile Strategy: A Survey of Construction Companies’ Supply Chains in Nairobi-Kenya

Abstract

There is cost-effective reasoning for designing a leagile supply chain (SC) strategy which refers to the synchronized application of both lean and agile approaches. Leagile strategy has been suitably applicable to manufacturing and has also been adopted by organizations in the optimization of deliveries of prefabricated building projects1,2. Companies equally embrace leagile strategy towards improving their competitiveness and realizing success3. Objective: This paper is an empirical study that examines the Supply Chains of Construction Companies to determine how Leagile Strategy impacts Competitive Advantage. Methodology: From a population of 4,015, stratified and simple random sampling procedure was employed to obtain a sample of 323 construction companies located in Nairobi-Kenya which were surveyed vide a cross-sectional approach. Diagnostic tests were conducted which revealed the reliability and validity of the questionnaire. Using structured questionnaires formulated in a five-point Likert Type scale to collect data, inquiries were directed to 323 respondents who were Supply Chain Managers and Directors or their representatives obtaining response from 260. Analysis of information was done vide Statistical software for social sciences version 22, generating both descriptive and inferential statistics. Correlation, and a linear regression model were used to test the hypothesis. Findings: This study found that leagile strategy influences competitive advantage in the construction companies’ supply chains. The findings further showed that other additional factors besides leagile strategy influence competitive advantage. Conclusion: A major conclusion was drawn that competitive advantage is significantly influenced by leagile strategy in construction companies’ supply chains. It was further concluded that through leagile strategy implementation, construction companies improved their competitiveness, outperformed competitors and alleviate the various problems hindering survival. Furthermore, the study established that besides leagile strategy, there are other factors which are contributing to competitive advantage. Implications: There is an exposition of the existence of a significant influence on competitive advantage by leagile strategy. The finding enhances conceptual understanding on the association between those two variables and increases knowledge in strategic management. There is fresh literature on the fact that leagile strategy vide its attributes such as waste removal, TQM, strategic planning, flexibility, responsiveness, IT systems, economies of scale, etc. impacts on competitive advantage. Additionally, leagile strategy has the capabilities of attaining competitive advantage by reducing costs, differentiating products, enhancing customer service level and shortening the lead times. The study also compliments knowledge concerning methodology in terms of the use of stratified sampling procedure, diagnostic tests which ensure research instrument’s reliability and validity as well as the Statistical software for social sciences version 22 to confirm how leagile strategy influences competitive advantage. Limitations: However, major limitations such as the outbreak of COVID-19 pandemic hindered the smooth data collection process and may have affected the response rate. This study recommends that construction companies should embrace leagile strategy to improve their competitiveness, outperform competitors and survive in the tumultuous business environment. This can be done through the implementation of practices which focus on reducing costs, differentiating products, increasing customer service level and shortening lead times. This research proposes that future studies should be conducted across other multiple industries and sectors using different methodologies from the current study.