Resource-Based Theory, Competition and Staff Differentiation in Africa: Leveraging Employees as A Source of Sustained Competitive Advantage

Abstract

This paper reports upon a research project designed to identify the extent to which and in what ways Human Resource (HR) managers in Africa view employees as a source of potential sustained competitive advantage (SCA) and whether Resource-based Theory (RBT) is being applied in practice. A qualitative research methodology is adopted, specifically a constructivist Grounded Theory Research Method (GTRM) approach. Data were collected through fifty-six semi-structured interviews from May 2015 through May 2016 with HR managers from 17 Sub-Saharan African countries. While the interviewees were not aware of RBT or consciously applying RBT principles and practices, many did see the potential for adopting a RBT model and the benefits it could deliver employees and the organization. However, some interviewees were skeptical of RBT and in all organizations represented by the sample there are many barriers to developing and implementing a RBT model. The study has advanced our knowledge of RBT in emerging African economies. The paper highlights a number of potential future research opportunities and acknowledges some of the study's limitations. There are potentially significant practical implications for companies in terms of maximizing employee capability and competitive advantage; opportunities currently being missed. There are implications for employees in terms of their development, job design and engagement and for HR managers developing HR strategy. The authors contend that this is the first empirical, multi-country study of Resource-based Theory in Africa.