ABSTRACT

Numerous factors, both internal and external of a business can contribute towards influencing the state of competitiveness. Positive or negative competitiveness can mean survival or complete collapse of a business. The purpose of this study was to evaluate the effect of internal organization dynamics on the competitive advantage of a firm. The three organizational dynamics that were under study included; workplace innovation, leadership approaches and organization culture. The study based on descriptive research design as the methodology. The target population of the study included Kenya Airways employees drawn from different departments across the airline. Structured questionnaire, which contained close-ended questions, was used as the basis for this study. A 5-point scale was used to measure the respondents levels of satisfaction for the questions that were listed in the questionnaires, where; 1 = strongly disagree, 2 = disagree, 3= neutral, 4 = agree and 5 = strongly agree. The study found that that work place innovation factors wielded significant influence on the internal organization dynamics. The findings show that internal organizational dynamics impacts directly on competitive advantage recording an average mean on 4.15. The study established that leadership approaches played a central role towards the determination of the organizational operational determination. This was affirmed by a recorded average of 4.19, which indicates that leadership approaches directly impacts on the level of organization competitive advantage. Further, the study established that organization culture determined the institutional approach towards organization operations which impacted on competitive advantage, recording an average mean of 3.90. The study concludes that internal organization dynamics factors are critical organizational drivers that form source of competitive advantages. Through strategic approach, enhancing elements of internal organization dynamics including; work place innovation, leadership approaches and organization culture contributes to deepening and solidifying of organizations competitive advantage. The study recommends for the integrated strategic approach in organization administration to boost sources of innovativeness. Through allocation of manpower and resources for research and innovation, and organization is able to develop core competencies vital for enhanced effectiveness of internal organization dynamics. This approach enhances the prospects of an organization developing unique aspects of firm competitive advantages.