Functional integration and competitive advantage of food and beverages manufacturing firms in Kenya

Abstract

The major aim of this study was to establish the relationship between functional integration and competitive advantage of food and beverages manufacturing firms in Kenya. The study adopted a cross-sectional survey. The target population was managers working along the supply chain from 270 food and beverage manufacturing firms in Kenya. The two-stage sampling design was employed. The first stage, cluster random sampling, obtained 73 food & beverages manufacturing firms. Second stage, convenience sampling, selected two participants from the 73 selected firms. Thus, a sample size of 146. Questionnaires were used to collect primary data using both the drop and pick and mailing methods. Secondary data was obtained through document analysis. Data were analyzed using SPSS version 28 to generate descriptive and inferential statistics. The study found that functional integration had a positive significant linear relationship with a competitive advantage. Additionally, the competitive advantage is anticipated to grow for every unit increase in functional integration. Thus, the study concludes that the parameters of functional integration are crucial in enhancing a company's competitive advantage in the food and beverage industry. Consequently, the study recommends that improvements in integrating functions internally should be strategically implemented.