The Role of Product - Service Design and Strategic Planning in Predicting Competitive Advantage

Abstract

To gain and maintain competitive advantage in the 21st century, organisations must effectively understand and respond to customer needs. This study examines how strategic planning mediates the relationship between product-service design and competitive advantage through the lens of the Resource-Based View (RBV). The RBV framework suggests that the use of internal resources and capabilities, such as strategic planning processes, can enhance an organisation's competitive position. Jamovi software was used to test the fit, reliability and validity of the model through regression analysis, factor analysis and principal component analysis. The study used a stratified random sample of 200 managers from the Tanzania-Zambia Railway Authority (TAZARA). Data were collected using a five-point Likert scale questionnaire and analysed using descriptive statistics, regression analysis, factor analysis and principal component analysis. The results reveal a positive and significant relationship between product-service design and competitive advantage, and between strategic planning and competitive advantage. In particular, strategic planning was found to partially mediate the relationship between product-service design and competitive advantage. This study makes a unique contribution to the existing literature by demonstrating that strategic planning is a critical mediator that enhances the impact of product-service design on competitive advantage. It highlights the importance for organisations to effectively formulate and implement strategic planning in order to sustain competitive advantage. Future research should replicate this study in other industries and explore additional moderating and mediating variables to provide more comprehensive insights.