The Effect of the Competitive Advantage on Business Performance: In the Case of Commercial Banks in Addis Ababa, Ethiopia
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Date
2022-06
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Addis Ababa University
Abstract
This study sought to identify the effect of sources of competitive advantage on business performance in the context of four selected commercial banks in Addis Ababa. Commercial Banks will gain competitive advantage by learning the best alternative source of competitive advantage in terms of its effect on performance of banking industry. The study covered the 4 commercial banks in Addis Ababa. The sample consists of 436 employees working at four commercial banks in Addis Ababa. Namely, data was collected from employees of the Commercial Bank of Ethiopia, Dashin Bank S.C, Awash Bank S.C and Bank of Abyssinia S.C. The study adopted a cross sectional survey research design; moreover the research study used primary data the primary research data was collected from the sample size population using a questionnaire. The study used convenience sampling approach to select a sample from the four commercial banks in Addis Ababa. The data analysis was done using SPSS, regression analysis and ANOVA analysis methods was used to analyse the collected data. The study sought to identify if service differentiation strategy and service innovation strategy had an effect on business performance of the selected commercial banks. The study findings shows that service differentiation strategy have a statistically significant effect on the performance of commercial banks in Addis Ababa, while service differentiation strategy do not have a statistically significant effect on the performance of commercial banks in Addis Ababa.
Key terms: - Commercial banks, competitive advantage, performance, service differentiation strategy, service innovation and Addis Ababa