Competitive advantage and dynamic competition:The role of innovation and disruption in retail banking

Abstract

The ability to integrate and coordinate new capabilities is considered a source of an organisation’s competitive advantage. This ability enables firms and industries to innovate and disrupt to generate value for appropriation. Although extensive research has been done within strategic management on an organisation’s ability to sense, seize and adapt in response to changes in market conditions and opportunities, organisations continue to struggle to effectively reconfigure themselves in alignment with their external environment. Particularly in environments being disrupted by innovation. The research explores the role of innovation and disruption on organisational competitiveness and competitive advantage in the Eswatini retail banking industry. This qualitative study employed thematic analysis on data collected from 11 semi-structured interviews from senior and executive managers in Eswatini’s retail banking industry. The research contributes towards the body of knowledge on strategic management in environments characterised by innovation and disruption led shifts in competitiveness. It establishes the importance of strategic adaptability and organisational resource optimisation for sustained organisational performance.