Management, Vol. 4, Issue 1, Feb  2021, Pages 19-36; DOI:

Differential Advantage as a Correlate of Organizational Competitiveness: A Study of Selected Small-Scale Enterprises in Aba, Abia State of Nigeria

Management, Vol. 4, Issue 1, Feb  2021, Pages 19-36.


Onyeaghala Obioma Hyginus 1* , Gift J. Eke 2 , Dannap Edmond Nanzing 3

1 Department of Business Administration, Federal University Wukari, Wukari, Nigeria

2 Department of Office and Information Management, Niger Delta University, Wilberforce Island Bayelsa State, Nigeria

3 Department of Business Administration, Kwararafa University, Wukari, Nigeria

Received: 23 August 2020; Accepted: 22 October 2020; Published: 1 December 2020

Full-Text HTML | Download PDF | Views 14465 | Download 8679


This study sought to ascertain if there is correlation between differential advantage and organizational competitiveness. A cross sectional survey research design was adopted in the study to determine the nature of the situation under investigation. All small-scale enterprises operating in Aba, Abia State of Nigeria formed the area of this study. However, because there are too many of them and the difficulty in accessing all, the researcher purposely selected the four dominant types for investigation. They are: Tailoring, shoe making, Leather bag and Hat producers. For the fact that the population is known, a proportional and systematic random sampling technique was employed to select representatives from each group and this gave a sample frame of 260. Questionnaire served as the instrument for data collection. The questionnaire was validated and tested for reliability before administration to respondents. Out of the 260 copies of questionnaire distributed to respondents, only 240 were properly completed and retrieved. Both descriptive and inferential statistics were employed in this study. Data were presented in frequency and simple percentage tables, which formed the basis for the analysis. The three null formulated hypotheses were tested with Pearson’s Product Moment Correlation statistical tool aided by the Statistical Package for Social Sciences (SPSS). Results from test of the three hypotheses shows that competitiveness of selected small-scale enterprises correlates significantly with low cost of production (R = 0.517), high skilled labor (R = 0.665) and new technology (R = 0.634) at 0.01 level (2-tailed). The results informed the rejection of the null Hypotheses 1, 2 and 3 in favor of the alternatives. This result shows that differential advantage correlates significantly with competitiveness of small-scale enterprises. The study recommends that business organizations should take advantage of high skilled labour, low cost of production and new technology to rise above competition. They should as well understand that differential advantage as a strategy should be durable, neither imitable or transferable nor transparent or easily replicable. It should be flexible to accommodate changes and sustained over time for it to be effective.


Differential Advantage, Competitiveness, Skilled Labour, Low Cost Of Production And New Technology


© 2017 by the authors. Licensee International Technology and Science Press Limited. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


[1] Abia State Ministry of Trade and Commerce, Umuahia, Abia State.

[2] Akan, O.; AllenR.S.HelmsM.SprallsS.A. Critical tactics for implementing Porter's generic strategies. Journal of Business strategy, 200627(1), 43-53.

[3]  ArmstrongG.A.; Kottler, P. Principle of Marketing. 11th Edition, McGraw-Hill1999.

[4] Benson C.CSustainability and Competitive Advantage: An Empirical Study of Value Creation; Martha and Spencer Love School of Business, 2011.

[5] BrownMCompetitive Advantage in a Business Plan. Available online: (accessed on 25 August 2019).

[6] Cravens, D.W.Piercy, N.F. Strategic Marketing. 10th Edition. New York. McGraw-Hill2013.

[7] Daft, R.LManagement, Sixth Edition, USA, South-West, a division of Thomson Learning DineshAvailable online: theory-of-competitive-advantage in: (accessed on 25 August 2019).

[8] GeorgopoulosN.BDeveloping a measure of competitive advantageJournal of Strategy and Management20136(4), 320-342.

[9] Priscilla in: Grant R, M (2006). Contemporary Strategy Analysis: Text and Cases Edition, 9th Edition, ISBN: 978-1-119-12084-1.

[10] Reference for businessAvailable online: on 30 August 2019).

[11] Competitive Advantage. Available online: (accessed on 30 August 2019).

[12] Joyce, M.IInfluence of Business Strategies on the Performance of Telecommunication Companies in Kenya a Research Project Submitted in Partial Fulfillment of the Requirements for the Award of Degree of Master of Business Administration, School of Business, University of Nairobi2015.

[13] Hendry L.C. Product customization: an empirical study of competitive advantage and repeat business. International Journal of Production Research, 201048(13)3845-3865.

[14] Management Study HQ (2019)Available online: https://www. (accessed on 30 August 2019).

[15] Porter, M.E. Competitive Advantage: Techniques for Analyzing Industries and Competitors, New York. USA: Free Press1998.

[16] Porter, M. E. What is strategy? Harvard Business Review, 199674(6)61-78.

[17] Porter, M.E. Competitive Advantage: Creating and sustaining superior performance, New York. USA: Free Press1985.

[18] SigalasCCompetitive advantage: the known unknown concept, American college of GreeceAvailable online: (accessed on 30 August 2019).

[19] SlywotzkyA. Value Migration: How to Think Several Moves Ahead of the Competition Boston: Harvard Business School PressAvailable online: (accessed on 30 August 2019).

[20] Thompson, A.Strickland, A.J. Crafting and Executing Strategy: Text and Readings. 15th edition, New York: McGraw Hill Companies, 2007.

[21] Thomas, L.W.David, J.HStrategic Management and Business Policy: Achieving Sustainability International Edition, Iowa State University, St. Johns’ University 12th Edition2010.

[22] Twin Competitive Advantage. Available online: (accessed on 25 August 2019).

[23] WheelenT.L.; HungerJ.DStrategic Management and Business Policy: Achieving Sustainability International Edition, New York, Prentice Hall, 2010.

[24] Yoo, J.W.Lemak, D.J.Choi, Y. Principle of Management and Competitive Strategies: Using Fayol to Implement Porter. Journal of Management History, 200612(4), 352-368.

Related Articles