Government Laws And Regulations Influence On Competitive Advantage

Abstract

Government laws and regulations are a key component to the technological changes taking place and the competitiveness and innovation experienced by Kenya's telecommunications industry. The high competition in the sector has meant that there is a need for stricter government laws and regulations that every player must observe to remain in the market. Open democratic space allows entry and exit of market players as long as the current laws are followed to the letter. This study's main objective was to explore the effect of government laws and regulations on the competitive advantage of telecommunication companies in Kenya. Using a positivist philosophy, the study adopted a descriptive research design in testing the hypothesis to establish the relationship between government laws and regulations and the competitive advantage in telecommunications companies in Kenya. The main instrument for data collection was a structured questionnaire targeting 26 licensed telecommunications companies in Kenya. Data from the field was sampled using the proportionate methodology, with a sample of 247 managers responding. Both descriptive and inferential statistics were applied for this study and processed through the Statistical Package for Social Sciences (SPSS). The null hypothesis was tested using multiple regression analysis with two linear regression models through factor analysis and ANOVA. Presentation of results through percentages, standard deviation, mean, and frequencies provided a background for discussion, conclusions, and recommendations. The study results observed that government laws and regulations statistically influence the competitive advantage of telecommunications companies in Kenya (β = .273, t = 4.740, p<.05). This led to the study concluding that government laws and regulations influence the competitive advantage of telecommunications companies in Kenya. The study recommends further research to compare local laws and regulations against regional or global ones influencing competitive advantage in the telecommunications industry.