Sustaining competitive advantage through techniques that are competence based in commercial banks

Abstract

This study focuses on the effect of competence based management system on competitive advantage of deposit money banks in South-South and South- East zones in Nigeria. The specific objectives are to ascertain the effect of leadership capability competence on competitive advantage, to determine the effect of functional competence on competitive advantage, to examine the effect of network capability competence on competitive advantage, to determine the effect of marketing capability competence on competitive advantage and to examine the effect of research and development capability competence on competitive advantage. Cross sectional survey research design method was employed. The population for the study consists of the eight (8) commercial Banks licensed by the CBN with international authorization with total population of 1,612. The sample size of three hundred and twenty one (321) was obtained using Taro Yamani sample size formula. A stratified sampling technique was used. The study was driven by primary and secondary data. The data were analyzed using correlation and regression analysis as analytical tools. The study concluded that leadership capability competence influence competitive advantage. Enhancing the leadership competences along the organizational structure is very vital for making the banks attractive to work and compete on regional and international level. Banks are highly encouraged to develop a clear strategy for enhancing a leadership competency in order to improve its performance and get the most out of its capabilities. The study recommends that every bank should engage in training in all aspect of organization to develop the competency/capacity for production management so as to achieve competitive advantage.