Influence of Conceptual Skills and Sustained Competitive Advantage among IT Networking SMEs in Kenya

Abstract

The purpose of this study was to examine the influence of managerial skills on sustained competitive advantage among IT Networking SMEs in Kenya. The study was anchored on Katz’s Managerial Skills Theory. A positivist research philosophy and descriptive correlational research design were adopted. The unit of analysis comprised 365 licensed IT networking SMEs in Kenya, while the unit of observation comprised 1,078 senior employees drawn from these firms. A stratified random sampling technique was used to select a sample of 292 respondents. Of the 292 questionnaires distributed, 242 were completed and returned, yielding a response rate of 82.9%. Primary data were collected using a structured questionnaire and analyzed using SPSS version 30 using descriptive and inferential statistics.   Correlation (r=0.585, p<0.01) and regression (β=0.585, B=0.312, p<0.001; R²=0.342) indicate significant positive influence. Strategic thinking (M=3.93), innovative thinking (M=3.90), and systems thinking (M=3.87) were highly developed. The study concludes that conceptual skills explain 34.2% of the variation in competitive advantage; hence, H0₁ is rejected. Further, it concludes that managers' strategic thinking, ICT systems thinking, and innovative thinking capabilities enhance organizational competitiveness. The study recommends that SMEs strengthen market intelligence, institutionalize strategic planning and innovation management practices, and promote cross-functional collaboration to improve adaptability, decision- making, and long-term competitiveness. The findings provide practical insights for SME managers, policymakers, and ICT industry stakeholders by highlighting the importance of strengthening managers' conceptual skills to enhance sustained competitive advantage in Kenya’s digital economy.