factors affecting change management in …
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FACTORS AFFECTING CHANGE MANAGEMENT IN
TELECOMMUNICATION COMPANIES IN TANZANIA: A
CASE OF SELECTED TELECOMMUNICATION
COMPANIES
BY
PAULINA COSTAPH NATAI
UNITED STATES INTERNATIONAL UNIVERSITY-
AFRICA
SUMMER 2021
FACTORS AFFECTING CHANGE MANAGEMENT IN
TELECOMMUNICATION COMPANIES IN TANZANIA: A
CASE OF SELECTED TELECOMMUNICATION
COMPANIES
BY
PAULINA COSTAPH NATAI
A Research Project Report Submitted to the School of Business in
Partial Fulfillment of the Requirement for the Degree of Masters in
Business Administration (MBA)
UNITED STATES INTERNATIONAL UNIVERSITY-
AFRICA
SUMMER 2021
ii
STUDENT’S DECLARATION
I, the undersigned, declare that this is my original work and has not been submitted to any
other college, institution or university other than the United States International
University-Africa in Nairobi for academic credit.
Signed: __________________________ Date: ________________________
Paulina Costaph Natai (656756)
This project has been presented for examination with my approval as the appointed
supervisor.
Signed: __________________________ Date: ________________________
Dr. Juliana M. Namada
Signed: __________________________ Date: ________________________
Dean, Chandaria School of Business
iii
COPYRIGHT
All rights reserved. No part of this project may be reproduced, stored in a retrieval system
or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise without permission from the author.
©Paulina Costaph Natai 2021
iv
ABSTRACT
The general objective of this study was to assess factors that affects change management at
telecommunication companies in Tanzania focusing on three telecom companies: Airtel
Tanzania, Tigo Tanzania and Vodacom Tanzania. This study was guided by the following
research questions: how does policy framework affect change management at the
telecommunication companies in Tanzania? how does competitive forces affect change
management at the telecommunication companies in Tanzania? and how does
technological advancement affect change management at the telecommunication
companies in Tanzania?
The research design adopted for this study was descriptive design. Population for this study
comprised of all employees at Airtel, Tigo and Vodacom all situated in Tanzania and target
population was limited to employees holding managerial position in the three companies
who were approximately 150. Census survey method was used to draw a sample size. The
primary data was collected using questionnaires which were analyzed using descriptive
statistics. Under descriptive statistics, inferential statistics including regression was used to
measure the relationships on variables that was observed and correlated. Statistical Package
for Social Sciences (SPSS) program was used to interpret the information in tables and
figures.
The study showed that on the first research question, the policy framework was significant
on change management with a positive correlation (r=0.225, p<0.05). The regression
analysis showed that 5.1% of the variance in change management could be explained by
the policy framework. The study uncovered that on the second research question,
competitive forces were significant on change management with a positive correlation
(r=0.569, p<0.05). The regression analysis showed that that 32.4% of the variance in
change management could be explained by competitive forces. The study showed that on
the third research question, technological advancement was significant on change
management with a positive correlation (r=0.615, p<0.05). The regression analysis showed
that 37.8% of the variance in change management could be explained by technological
advancement.
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The study concluded that for policy framework, improvements on legislations for the ICT
industry has boosted the change management process whereby companies made
impeccable changes following government adjustments to legislation. Also, the change
process has led to enhancements of the company’s policies which in turn steered better
decision making. For competitive forces, customers are driving force to change initiatives
in a company and through their involvement has steered better change management
decisions. Competition drives change management of the company whereby strong
competition has led to strong management of changes in the company. For technological
advancement, technology has played a great role in the success of change management
initiatives whereby the success of change management initiative is measured by level of
technology. Adaptation of new and advance technological system has boosted offerings in
the market through which new market opportunities for products have accelerated these
change initiatives.
For policy framework, the study recommends Airtel, Tigo, and Vodacom Tanzania should
work closely with the government to bring about change in the industry policy. For
competitive forces, the three telecom companies should use competition they are facing as
a ground for solidifying their change management. For technological advancement, the
three telecom companies should use technology to support the implementation of change
initiatives rather than using it to make changes.
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DEDICATION
This research is dedicated to my family and to all who have given up on their dreams.
vii
TABLE OF CONTENTS
STUDENT’S DECLARATION ........................................................................................ ii
COPYRIGHT ....................................................................................................................iii
ABSTRACT ....................................................................................................................... iv
DEDICATION................................................................................................................... vi
TABLE OF CONTENTS ................................................................................................ vii
LIST OF TABLES ............................................................................................................ ix
LIST OF FIGURES ........................................................................................................... x
ABBREVIATIONS AND ACRONYMS ......................................................................... xi
CHAPTER ONE ................................................................................................................ 1
1.0 INTRODUCTION........................................................................................................ 1
1.1 Background of the Study ............................................................................................... 1
1.2 Problem Statement. ........................................................................................................ 7
1.3 Purpose of the Study ...................................................................................................... 9
1.4 Research Questions ........................................................................................................ 9
1.5 Importance of the Study ............................................................................................... 10
1.6 Scope of the Study ....................................................................................................... 10
1.7 Definition of Terms...................................................................................................... 11
1.8 Chapter Summary ........................................................................................................ 12
CHAPTER TWO ............................................................................................................. 13
2.0 LITERATURE REVIEW ......................................................................................... 13
2.1 Introduction .................................................................................................................. 13
2.2 Policy Framework and Change Management .............................................................. 13
2.3 Competitive Forces and Change Management ............................................................ 18
2.4 Technological Advancements and Change Management ............................................ 25
2.5 Chapter Summary ........................................................................................................ 31
CHAPTER THREE ......................................................................................................... 32
3.0 RESEARCH METHODOLOGY ............................................................................. 32
3.1 Introduction .................................................................................................................. 32
3.2 Research Design........................................................................................................... 32
3.3 Population and Sampling Design ................................................................................. 32
3.4 Data Collection Methods ............................................................................................. 33
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3.5 Research Procedure ...................................................................................................... 34
3.6 Data Analysis Method.................................................................................................. 34
3.7 Chapter Summary ........................................................................................................ 35
CHAPTER FOUR ............................................................................................................ 36
4.0 RESULTS AND FINDINGS ..................................................................................... 36
4.1 Introduction .................................................................................................................. 36
4.2 Demographic Information ............................................................................................ 36
4.3 Policy Framework and Change Management .............................................................. 38
4.4 Competitive Forces and Change Management ............................................................ 44
4.5 Technological Advancement and Change Management.............................................. 49
4.6 Chapter Summary ........................................................................................................ 55
CHAPTER FIVE ............................................................................................................. 56
5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS ........................ 56
5.1 Introduction .................................................................................................................. 56
5.2 Summary ...................................................................................................................... 56
5.3 Discussion .................................................................................................................... 58
5.4 Conclusions .................................................................................................................. 66
5.5 Recommendations ........................................................................................................ 67
REFERENCES ................................................................................................................. 69
APPENDICES .................................................................................................................. 79
APPENDIX I: INTRODUCTION LETTER ................................................................. 79
APPENDIX II: QUESTIONNAIRE .............................................................................. 80
APPENDIX III: INFORMED CONSENT FORM ....................................................... 85
APPENDIX IV: DEBRIEFING FORM......................................................................... 86
APPENDIX V: IRB LETTER ........................................................................................ 87
APPENDIX VI: NACOSTI PERMIT ............................................................................ 88
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LIST OF TABLES
Table 3.1: Sample Size Distribution .................................................................................. 33
Table 4.1: Descriptive for Policy Framework and Change Management. ......................... 39
Table 4.2: Frequency Analysis for Policy Framework and Change Management ............ 40
Table 4.3: Correlation analysis for Policy Framework and Change Management ............ 42
Table 4.4: Model Summary for Policy Framework and Change Management ................. 43
Table 4.5: ANOVA for Policy Framework and Change Management .............................. 43
Table 4.6: Coefficients for Policy Framework and Change Management......................... 43
Table 4.7: Descriptive for Competitive Forces and Change Management ........................ 45
Table 4.8: Frequency Analysis for Competitive Forces and Change Management .......... 47
Table 4.9: Correlation analysis for Competitive Forces and Change Management .......... 47
Table 4.10: Model Summary for Competitive Forces and Change Management ............. 48
Table 4.11: ANOVA for Competitive Forces and Change Management .......................... 48
Table 4.12: Coefficients for Competitive Forces and Change Management. .................... 49
Table 4.13: Descriptive for Technological Advancement and Change Management ....... 50
Table 4.14: Frequency Analysis for Technological Advancement and Change Management
............................................................................................................................................ 51
Table 4.15: Correlation analysis for Technological Advancement and Change Management
............................................................................................................................................ 53
Table 4.16: Model Summary for Technological Advancement and Change
Management ....................................................................................................................... 54
Table 4.17: ANOVA for Technological Advancement and Change Management ........... 54
Table 4.18: Coefficients for Technological Advancement and Change Management ...... 54
x
LIST OF FIGURES
Figure 4.1: Gender ............................................................................................................. 36
Figure 4.2: Age .................................................................................................................. 37
Figure 4.3: Education Level ............................................................................................... 37
Figure 4.4: Telecommunication Company ........................................................................ 38
Figure 4.5: Period of Working in the Company ................................................................ 38
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ABBREVIATIONS AND ACRONYMS
EOI: Export-Oriented Industrialization
GSM: Global System for Mobile Communication
HR: Human Resource
ICT: Information and Communication Technology
IMF: International Monetary Fund
IPO: Initial Public Offering
IRB: Institutional Review Board
ISI: Import-Substitution Industrialization
ISP: Internet Service Provider
IT: Information Technology
KPTC: Kenya Posts and Telecommunications Corporation
LTE: Long Term Evolution
NACOSTI: National Commission for Science, Technology and Innovation
NTP: National Telecommunications Policy
OECD: Organisation for Economic Co-operation and Development
PLMN: Public Land Mobile Network Services
SOE: State-Owned Enterprises
SPSS: Statistical Package for Social Sciences
TBC: Tanzania Broadcasting Corporation
TCC: Tanzania Communication Commission
TCRA: Tanzania Communications Regulatory Authority
TPC: Tanzania Posts Corporation
TPTC: Tanzania Posts and Telecommunications Corporation
TTCL: Tanzania Telecommunications Company Limited
UNCTAD: United Nations Conference on Trade and Development
VOIP: Voice Over Internet Protocol
VSAT: Very Small Aperture Terminal
WB: World Bank
WFP: World Food Programme
WTO: World Trade Organization
1
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
The inevitability of change can never be overstated especially in modern society, driven
and characterized by innovation and a need for improvement. The strategic and
operational agendas that preoccupy 21st-century organizations is the concept of change.
According to Hussain, Lei, Akram, Haider, Hussain, and Ali (2018), organizational
change refers to the process of moving an organization from a current known state to an
unknown desired future state. These states could be globalization, deregulation,
privatization, mergers, acquisitions, movement of labor towards inexpensive economic
locations, advancements in technology, and simultaneous empowering of consumers.
During this process, organizations that tend to skillfully steer change flourish very well
while those who are unable tend to struggle to exist in the market (Ogochi, 2018). To
manage change in organizations successfully depends on the kind of change, people skills,
and overall involvement of individuals during change.
Changes are inevitable in both the private and public sectors, therefore; organizations must
change with the environment lest they become irrelevant. Aljohan (2016) explained that
the change process is driven by the need for strategic consideration in the organization
which includes the requirement to refine business processes and assimilate working
methods in a manner that result in a coherent change management structured programs in
the assumption that change management would be completed with partial involvements
that are measurable, objective and linearly manageable in a short period.
Change management is the process that is ongoing and it takes efforts, expertise, time,
and dedication to run and implement. It requires the involvement of people or staff of the
company and may also result in these people being affected by the changes too (Hambrick,
2014). Because of the experimental nature of change management, researchers have over
the years developed theories that aid in the process of change management. Continuous
change is a result of globalization, advancement in technology, increased customer
awareness, increased flow of information, increased rate of competition, etc. The forces
subject organizations to challenges as to how to respond, handle and mitigate the negative
impact of those changes. The result of unpredictability and uncertainty in the environment
have led to circumstances where competition is becoming more sour making organizations
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that reactively respond diminish their competitiveness and weaken their market share and
their possibility to remain sustainable in the market. Key success factors to the turbulent
environment are for organizations to be prepared for these uncertainties and react
proactively in terms of capabilities and resources (Dirani, Houssien & Hejase, 2019).
Change is the process through which something becomes different. It can include new
ways of doing work, a new system installed, new job role, new product/services, new
managerial procedure, mergers and acquisition and change in market location. Change
management is how these changes are proactively treated within an organization. It
involves introducing the change and careful monitoring and controlling the changes (Hiatt
& Creasey, 2012). Kang (2015), defined change management as the method of constantly
renovating an organization’s structure, direction, and capabilities to cater to the external
and internal needs of customers. It is also associated with changes at the personal level
and researchers found out to be a difficult element in the change management process.
Hiatt and Creasey (2012), stated that change management is a set of methods, tools, and
practices that facilitate an individual to transition from current state to a state where goals
can be achieved
Change management is an important aspect companies can use to face internal and
external challenges. It provides an opportunity for stakeholders in the organization to
participate in sharing ideas on how best to implement the needed changes. But change can
become hard for not only people or organization when the required change is essential,
far-reaching (Shore & Kupferberg, 2014). These challenges are unavoidable even when
the change assures unquestionable positive results because of fear of not knowing what to
do, what will happen and fear of these change to alter the status quo. When changes are
not well handled these challenges result in loss of market shares, missed business
opportunities and overlooking competitor trends. Managing change is also vital to
employees in reducing their resistances to change by facilitating them to embrace changes
and adopt new skills, behavior, and values in order to attain company’s objectives (Hiatt
& Creasey, 2012; Kunze, Bohm & Bruch, 2013).
Change management practices can be implemented at two-level. Firstly, individual
change management where individuals are supported and managed to successfully transit
in the change process by being equipped with the right tools and techniques to understand
their roles through the change process (Hiatt & Creasey, 2012). This includes coaching
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employees through; holding focus conversations with employees, diagnose gaps in the
program of managing change for each department, and identifying corrective actions
which are based on desired results (Kunze et al., 2013). Secondly, organizational change
management where managers define practices and skills from top management going
down the hierarchy that will help the organization adopt the changes easily and
successfully. It includes using individual change management tools with organizational
tools like communications and training on the overall culture of the organization.
According to Schein (2010), “the fundamental assumptions underlying any change in a
human system are derived originally from Kurt Lewin (1947).” This process according to
Lewin has three steps: Unfreeze the organization from its current state, make the desired
type of change, and refreeze the organization in a new, desired state. It’s noteworthy to
mention that change management is not a process that stands alone for designing a
business solution but it is about realizing human reactions and anticipating the best
strategy to deal with these reactions.
Change management has evolved from initial understandings to conceptual foundations
and on to a recognized discipline. According to Porsci (n.d.) change management
evolution is marked by four eras named foundation, on the radar, formalization, and going
forward. The Foundation era was the period before 1990 where researchers focused on
understanding how humans experience, interact and react to change. Contributors during
this era included Arnold Van Gennep (1909), Kurt Lewin (1948), Richard Beckhard
(1969), and William Bridges (1979). The second era was ‘on the radar’ period 1990 to
2000 where change management began to be introduced in the business giving rise to
different concepts and languages that are still being applied to date. Some of the
contributors are General Electric (GE) (early 1990), John Kotter (1996), and Spencer
Johnson (1998) to name a few. The third era is formalization 2000 till present where
structures are defined together with tools and processes that offer credibility and
repeatability of change management discipline. Going forward, change management will
continue to grow on many fronts like continuous collaboration with related disciplines,
increasing organization capability to manage change, and development of individual
change management professionals.
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Globally, telecommunication industry is presently in the stage of transformation which
include liberalization of regulation, national carriers become privatized and advancement
in technology like wireless network and internet. These transformations have resulted into
the restructuring of the industry from traditional nationalized carrier that sell primarily
voice traffic to information and communication era (Grishunin & Suloeva, 2015). In this
era, information and telecommunication technologies are carefully integrated and
facilitate the transmission of information to numerous distances. The key trends in the
global industry involve depreciating traditional role of voice service and increase
development of fast-moving internet access, communication technologies and delivering
new services with wealthy content like financial services, entertainment and e-commerce.
For telecom companies to remain competitive, they have to develop their capability by
investing in acquisition of efficient spectrum and fiber in order to provide superior
capacity and coverage, increase affordability and range of handsets, and improve
distribution channels.
Countries around the globe have been experiencing transformation in the telecom industry
in the last two decades. Forces that drove these transformations include deregulations,
innovation, market structure, etc. (Beers, 2021). India in the past decades has recorded a
lot of transformation in its telecom industry which facilitated them to securing a second
place as the world’s largest telecom industry with 1.16 billion subscriber bases. The
government of India has played a major role in spearheading these changes by creating a
proactive and fair regulatory framework along with easy market access to telecom
equipment that has guaranteed the availability of telecom services to consumers at
affordable prices. In September 2018 the government disclosed the National Digital
Communication Policy, 2018 which aimed at attracting investment worth US$ 100 billion
and generate 4 million jobs in the sector by 2022. It also launched the National Broadband
Mission intending to provide broadband access to all villages by 2022 (India Brand Equity
Foundation, 2021).
Regionally, Kenya's telecom sector has experienced a lot of changes since its liberation
from KPTC. This sector has experienced strong growth in 2018 mainly supported by rapid
developments in the mobile market, growth in the digital economy, and internet
penetration (Eastern Standard Time, 2019). The government of Kenya recognized the
telecom industry as a vital sector to promote fast economic growth and the sector employ
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a number of digital advancements such as installing national and metropolitan fiber
backbone networks and wireless access networks to deliver services to population across
the country. Another change that revolutionized the sector is the mobile money service
which was launched in 2007. With 58% of the population use mobile money, at the end
of March 2019, it was observed that active subscriptions for mobile money transfer
mounted at 32 million and there were 223,084 mobile money agents (Lancaster, 2020).
The telecommunication sector in Tanzania is one of the growing and competitive markets
in Africa since its liberalization in February 2005 from Tanzania Telecommunications
Company Limited (TTCL). Before liberalization, TTCL company under Tanzania Posts
and Telecommunications Corporation (TPTC) was the monopoly company responsible
for all communications and regulations in the telecom industry in the country. The
communication Act of 1993 marked the first era of liberalization of the sector which led
to the fragmentation of TPTC into TTCL, Tanzania Posts Corporation (TPC), and the
Tanzania Communication Commission (TCC) (Materu-Behitsa & Diyamett, 2010). In an
effort to fully liberalize the sector, from 1993 to 2005 the sector experienced a lot of
government reformations on the policies kept in places such as the 1997 National
Telecommunications Policy (NTP), privatization of TTCL, and establishment of a new
agency named Tanzania Communications Regulatory Authority (TCRA) which rook over
functions of Tanzania Broadcasting Corporation (TBC) and Communications
Commission (Mkono & Wilms, 2006).
The telecommunication industry in Tanzania has experienced a lot of changes since its
liberation from TTCL. Some of these changes are aggressive competition, leading some
companies to exit like Smart, the rise of fixed and fixed-wireless internet providers,
reduction in phone prices, and online platforms which increased demand for internet and
mobile money transaction. Other changes that the sector has experienced is the removal
of counterfeit smartphones which accounted for up to 30% of devices in circulation, the
introduction of biometric sim card registration, the requirement of companies to go public
by registering on the Dar es Salaam Stock Exchange (DSE) and the arrival of the first
fiber optic international submarine cables in the country (Nyanje, 2019). Despite these
changes, the mobile operators have worked so hard to compete for the market which
comprises of Vodacom holding 32%, Millicom Tanzania (Tigo) 26%, Airtel 27%, Halotel
11%, Zantel 2%, TTCL 2% according to TCRA report of March 2020 (TCRA, 2020). The
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market has grown so much in the number of subscriptions from 34,251,801 in 2014 to
48,939,872 in 2019 with a penetration rate of 88% in 2019. This makes the sector to be
one of the fastest-growing markets and more liberal in East Africa as well as Africa
(Lancaster, 2020).
Vodacom Tanzania is the leading and competitive telecommunication company in
Tanzania holding a 32% market share. Being part of the Vodacom Group, Vodacom
Tanzania was introduced in the country in 1999 after the group won a bid to operate Global
System for Mobile Communication (GSM) cellular network and provide Public Land
Mobile Network Services (PLMN) and started its official operations in 2000. In 2006
Vodacom Tanzania changed its PLMN license and was granted new licenses that enabled
the company to provide voice, data, and a variety of communication services both
nationally and internationally. These licenses were named Network Services License,
Network Facilities License, and Application Services License and were all introduced by
the government to improve the communication services in Tanzania which in turn brought
the concept of technology neutrality (Oxford Business Group, 2018).
Millicom Tanzania well known as Tigo Tanzania is one of the second largest
telecommunication companies in Tanzania behind Vodacom Tanzania. With its mission
“To lead the adoption of the internet and Digital Lifestyle” Tigo Tanzania is the first
mobile operator to revolutionize the digital era in Tanzania by introducing GSM and 3G
networks and later upgraded its networks to 4G in April 2014 (Tigo, n.d). Being the
leading 4G provider in the country with its coverage in 22 cities, in September 2018 Tigo
Tanzania introduced the 4G+ network, the fastest internet speed provider in the country
differentiating itself from other mobile operators. To strengthen its position in the country,
in 2015 Tigo Tanzania acquired Zantel, the Zanzibar-based mobile operator.
Besides Vodacom and Tigo Tanzania, another great example of a company that has
encountered a series of changes in its line of work is Airtel Tanzania. Airtel Tanzania is
also a giant player in the telecommunications industry in Tanzania and has risen, over the
years, to be one of the most competitive mobile network operators and Internet Service
Providers (ISPs). Airtel Tanzania was incorporated in the year 2001 and is partially owned
by Bharti Airtel and the government of Tanzania. The company was a result of changes
in the government licensing scheme from zonal to national license is done by TCC in 1998
giving room for Celtel Tanzania owned by Celtel International to be licensed as a mobile
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operator in 2001. In the year 2007, the company was acquired by Zain leading to the
rebranding of the company to Zain Tanzania. The company was purchased in 2010 by
Bharti Airtel giving birth to Airtel Tanzania. Due to disputes in terms of the ownership of
the company, Bharti Airtel settled this dispute with the Tanzania government by
transferring 40% of the shares to the government (The East African, 2019).
The holistic changes in the telecommunications sector have forced Vodacom, Tigo, and
Airtel to adapt to the ever-changing environment and restructure their business model,
every quite so often. Since their incorporation, these companies have encountered some
overhauls in the operational framework, such as the gradual transition from the 2G and
3G network to the 4G network. Other changes have also been observed in this sector,
including the recent introduction of biometric sim card registration, registration of
companies to DSE, and high demand for faster internet service provision. To maintain
their market share and gain a competitive advantage against their rivals, these companies
had to adapt to these changes and even recreate their business model, to be unique and
stand out from their rivals. For instance, Tigo Tanzania introduced a 4G+ network making
it be the fastest internet provider in the company (Lancaster, 2020).
These changes have, most probably, had a huge impact on the operative structure of these
firms, and several adjustments may have had to be made, but they have largely contributed
to the overall success of the business. Vodacom, Tigo, and Airtel being major players in
the telecom industry are always committed to ensuring excellent quality of service,
customer satisfaction, product development, and social growth. Hence, to achieve all this,
optimum change management is required to ensure the evolutionary changes are properly
managed, as need be so that the transitionary processes are smooth and non-destructive to
the firm’s operative platform.
1.2 Problem Statement.
Companies doing business in today’s environment are facing new realities such as
disruptive technology, fierce competition, deregulations, unpredictable economy,
globalization among others. These new realities require companies to develop abilities to
adopt these changes in a bold manner to gain competitive advantages and hence acquire
superior performances. According to Aljohani (2016) the change process is strongly
motivated by strategic consideration such as the need for organizations to improve their
business processes and incorporate them in the ways of working. The end result of these
8
considerations includes a well-structured program of change management which is
developed on the assumptions that change will be managed with minimum interventions
that are linearly manageable, objective and measurable in short period of time. But for over
decades, managers, academics, and consultants, upon realizing that transforming
organizations isn’t easy, have separated the subject of change management. They praised
leaders who make change efforts succeed by communicating vision and walk the talk,
supported the importance of changing employee’s attitude and organizational culture, and
ease out tensions amid top-down change efforts and sharing approaches to change (Sirkin,
Keenan, & Jackson, 2005). Still, studies uncover that most organization’s change
management fail. The more things change, the more they stay the same.
Managing change is hard and part of the problem is the presence of little agreement on what
factors most affect it. Another problem is the existence of limited studies that have been
conducted to examine the factors that affect change management. Though numerous factors
affect change management in companies, most studies focused on leadership and culture.
A study conducted by Rioba (2018) on the factors affecting change management at Telkom,
concentrated on structure, leadership, and culture and found that there is a positive
correlation with the change management process. Another study by Wambua (2017) looked
at communication, culture, and employee preparedness to change in state corporations in
Kenya and found that these variables affect the change process in a great way, and managers
in the organization ought to ensure proper communication on change should be done at all
level to reduce resistance to change by employees. Mulyungi (2017), did a study on factors
affecting change management at National Police Service Commission in Kenya by looking
at communication, leadership, organization culture, and technology and found out they
affect the organization to a large extent. In another study by Farah (2018) done at World
Food Programme (WFP) in Kenya concentrated on employee’s attitude, leadership
influence and organization culture on how they affect change management in the
organization and found out these variables are of importance to make change management
successful and the organization should invest in improving them through training both
employees and management and proper structure should be put in place. Van der Voet,
Kuipers, and Groeneveld (2016), looked at the relationship between leadership and
commitment to change in a public sector context and found out that for a successful
implementation of change to take place, transformation leadership behavior of direct
supervisors is an important contribution.
9
Tanzania's telecom sector in recent years has recorded several changes in the sector forcing
companies operating in this turbulent environment to redefine their change management
structures to become successful. The government of Tanzania is more determined to
manage the industry more effectively and this has led to the introduction of many changes
including the introduction of a biometric SIM card registration system, eradicating
counterfeit smartphones from device circulation, eliminating ownership of more than one
SIM card from the same service provider unless special request, government acquisition of
35% stake of incumbent TTCL from Bharti Airtel, pass of legislation that required all
telecom companies licensed in the country to register to DSE, provided rules under which
service providers are required to use when setting prices for voice, internet and SMS
bundles such as price change can be done after three months by service provider whereby
previously service providers can decide to change their prices anytime. These changes
among others that this industry has faced, have created a premise from which this study
intends to establish factors that affect change management in telecommunication
companies operating in Tanzania. Shmula (2017) wrote that none of the factors towards
change shouldn’t be neglected during change because the key factors that can lead to
success doom it to failure.
1.3 Purpose of the Study
The purpose of the study is to assess factors that affects change management at
telecommunication companies in Tanzania.
1.4 Research Questions
This study will be guided by the following research questions:
1.4.1 How does policy framework affect change management at the telecommunication
companies in Tanzania?
1.4.2 How does competitive forces affect change management at the telecommunication
companies in Tanzania?
1.4.3 How does technological advancement affect change management at the
telecommunication companies in Tanzania?
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1.5 Importance of the Study
1.5.1 Managers
This study aims to find the extent to which policy framework, competitive forces and
technological advancements affect management changes. Through the findings, managers
will be able to formulate strategies appealing to the challenges they would face in guiding
the organization through a change process.
1.5.2 Government
The findings will assist the government on improving different policies that already exist
and creating new regulations to enable companies to compete fairly.
1.5.3 Other Firms
Other firms within and outside the telecommunication industry will be able to use the
findings of the study to improve on their own change management processes as well as,
forming proactive strategies for managing change.
1.5.4 Researchers
Researchers interested in the area of change management can benefit from this study when
carrying out field studies, using it as a basis to refine their approach to analyzing the
question of change management and filling any gaps that would arise due to the time value
factor.
1.6 Scope of the Study
This study focuses on factors affecting change management in the telecommunication
industry. The study will zero in by analyzing selected companies in the industry i.e.
Vodacom, Tigo and Airtel which are the major players in the telecommunication space in
Tanzania. The findings and recommendations of the study will be generalized to other
telecommunication firms in Tanzania. This study will narrow down on policy framework,
competitive forces and technological advancement and analyze how they affect change
management. The sample respondents in this study will be employees in managerial
position in different departments who manage changes in their companies. The study will
start September 2019 to October 2020.
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1.7 Definition of Terms
1.7.1 Change
Change is defined as an adjustment of organization’s culture, strategies or structure
resulting from changes in the environment, people or technology (Passenheim, 2010).
1.7.2 Change Management
Change management refers to structured method of transitioning teams, organizations and
individuals from the present state to a desired state in order to execute or achieve a strategy
and vision (Njuguna & Muathe, 2016).
1.7.3 Competitive forces
Competitive forces refer to characteristics that are regarded as essential in fostering a
product or service to its deliberate market (Layton, 2007).
1.7.4 Policy Framework
A structure that is formed to organize policies in the organization into groups and categories
in a manner that simplify employees to search and understand different policy documents
in detail (Newcomb, 2009).
1.7.5 Technology
Technology involves the utilization of available resources, including information
communication, skills, knowledge and intellectual capacity, and tools, to find a solution to
identifiable problems (Wahab, Rose, & Osman, 2012).
1.7.6 Technological Advancement
Technological advancement, on the other hand, constitutes the generation, and further
development, of new information or processes, that helps further understand technology
and maximize its potential (Wahab et al., 2012).
1.7.7 Telecommunication
Telecommunications refers to the employment of advanced technology to communicate
over distances using equipment such as telephone, cable, broadcasting, and telegraph,
among many other examples (Oden & Strover, 2002).
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1.8 Chapter Summary
This chapter summarizes the factors that affect change management focusing on 3 factors
among many i.e., policy framework, competitive forces and technological advances. It
also highlights the importance of managing change and how company’s competitiveness
improves when change is effectively managed. Chapter two is an overview of the literature
review organized according to the research questions. Chapter three discusses the research
methodology which covers the research design, population and sampling design, data
collections methods, research procedures, data analysis methods and chapter summary.
Chapter four discusses results and findings of the study organized according to research
questions. Chapter five presents the discussions, conclusions, and recommendations of the
study based on study results and findings.
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CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
The literature review seeks an in-depth investigation of the problem area using the
guidelines set in by the research questions in chapter one. The literature review focuses
on the empirical studies that are related how policy framework affect change management,
how competitive forces affect change management and how technological advancement
affect change management. The section ends with a chapter summary.
2.2 Policy Framework and Change Management
Due to the sheer importance of the telecommunication industry in this day and age, it is
quite crucial to have proper regulatory frameworks to manage the running of
communication companies. Previously, policy framework in the telecom industry focused
on managing technical standards, investments in the infrastructure, operational practices,
financial settlements and cost distribution amongst network operators (APNIC, 2020).
According to World Trade Organization (WTO) statistical review of 2019,
telecommunication industry which is part of Information, Communication and
Technology (ICT) sector is the most active service sector growing by 15% in 2018 (World
Trade Organization, 2019). The growing and changes in this sector have led stakeholders
to re-look their approach to telecommunication regulation, by legislating to cater to the
inevitable changes, developing industry standards and at the micro level organizations
developing internal policies to deal with the changes.
2.2.1 Government Policy
The past two decades seem to confirm the power of the regulatory reform trinity: separate
regulators, competition, and privatization. By following, adapting or reinventing these
approaches most countries have revitalized its ICT market, transforming it into digital
economies (Ndung’u, 2019). Notably, most countries have designed regulatory authorities
separate in their decision making. Government legislation tends to be important, because
at a governance level, many firms don’t have sufficient visibility into the impact of
regulatory change on their organization because their processes are fragmented and
managed in silos (Jones, 2013). Departments and individuals manage regulatory updates
and compliance in their own way, which causes them to lose sight of the bigger picture.
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Theoretically, the nudge theory has spoken to this need to rethink the political workings of
habit and habituation in the telecommunication industry. According to Thaler and Sunstein
(2008), by implementing minor alterations to everyday architectures and infrastructures,
governments and private institutions can steer people towards making better decisions with
the potential to fundamentally improve their performances. Nudge theory work best in
complimenting the already existing government policies rather than placing it within traditional
policy tools which share different traits (Kosters & Van der Heijden, 2015). This concept
fundamentally applies in the government policies with no limitation to the field.
Governments and organizations are constantly reforming to become more effective,
efficient, responsive and open to policy challenges. These reforms are encouraged by
changes in the framework in which they operate due to changes in technology, economic
or social environment, political change etc. which in turn lead to change in policies and
practices they pursue (OECD, 2017). Tanzania has shown its determination in managing
the telecom sector more efficiently by reforming its policies which demolished counterfeit
smartphones that accounted for 30% of devices in movement, the introduction of biometric
SIM card registration using the National identification card, heavy fines upon operating
SIM card not registered on one’s name/company and limitations on the number of SIM
cards one/company can operate from the same mobile operator unless upon special permit
(Bombourg, 2020).
2.2.2 Industry Policy
There is no country that has made efforts to move its economy from poverty state to
postindustrial affluence without employing selective and targeted government policies
aimed at changing its economic structure as well as improving its economic dynamism.
Additionally, it is hard to comprehend how at any level of development a country can
proactively respond to current global challenges such as unemployment, climate change,
poverty, technology revolution, green economy, global value chain, etc. without using
industry policy (Salazar-Xirinachs, Nübler & Kozul-Wright, 2014). Industrial policy has
gained a lot of attention since the 2007-2008 financial crisis forcing many governments
in developing and developed countries to put it back in their policy agenda. The challenges
that governments face pertaining industrial policy is not whether to have it but in what
manner these policies can be designed and implemented (United Nations Conference on
Trade and Development, 2016).
15
The neoclassical thinking that contributed in industrial policy literature is the experiences
of East Asia and Latin America. Industrialization of East Asia economy ahead of Latin
America economy brought a lot of debate among economists who argued what caused
these revolutions in their economy. Key success factors that have been identified are
industrial and public policies designed and implemented by East Asia. These policies
efficiently stimulated rapid accumulation of capital in the form of human capital,
infrastructure, plants, R&D and equipment (United Nations Conference on Trade and
Development, 2016). According to Cheng, Haggard and Kang (1998), the adaptation of
strategies like Export-Oriented Industrialization (EOI) by East Asia and Import-
Substitution Industrialization (ISI) by Latin America are also key factors to deviating
industrial and economic performances of the two regions. These strategies can supposedly
be interpreted as bunch of policy procedures designed for industrialization.
As pertains to the telecommunication industry in general, studies show that a sturdy
predictor of economic growth in any country is investment in the telecom infrastructure
(Madden & Savage, 1998). These findings advocate the need for countries to fashion their
policy environments favorable for investment to take place in order to precipitate economic
development. Though in a nascent environment policy can be a good thing, care has to be
taken for there not to be a situation of overregulation. Due to globalization policy makers
tend to get extra frisky with increasing regulations that tend to impact multiple jurisdictions
and risk areas (Cunningham & Kempling, 2009). Reformation of policies is inevitable
which has resulted to various, complex, and interrelated sets of requirements for
compliance. The timelines and scope for compliance are frequently uncertain. There is also
the cost factor - substantial funds are required for regulatory change management and
restructuring (Jaros, 2010).
The other development in the global environment that have promoted changes in the market
posing opportunities and challenges for developing countries is the rise of China as an
economic powerhouse and Global Value Chain (GVC). These new developments require
countries to rethink their strategies and policies in order to accommodate these changes and
remain competitive (UNCTAD, 2016). Government intervention in regulating functions in
the market through proper industrial policy framework and support of an efficient
bureaucracy, infrastructure, skilled workforce etc. is very much needed for organizations
in developing countries to propagate in the competitive world. According to the surveys
16
conducted for the 2015 Technology and Innovation Report (UNCTAD, 2015b), disclosed
that unsuited regulatory frameworks are amongst the critical hindrances to entrepreneurship
and innovation in Tanzania.
2.2.3 Organizations Policy
Policy is crucial in the running of any organization, and more so in telecommunication firms.
The institutional theory centers on the more profound and strong features of social
structure. It ponders structural processes like rules, schemes, routines, and norms to become
well-known as authoritative guidelines for social behavior (Scott, 2004). Various
mechanisms of the institutional theory elucidate how these elements are formed, diffused,
accepted and altered over time and space as well as how they descent into disuse and decline
(Dacin, Goodstein, & Scott, 2002). For organizations to succeed, they must obey belief
systems and rules predominant in the environment. The institutional theory points out the
need to focus on the institutional factors that could influence strategic change
implementation.
Policy documents in the telecommunication industry as with many other technologies and
innovation-based firms tend to be proprietary and thus subject to internal operation
procedures from the individuals who can access then, to how they are disseminated with
the organization (Anelia, 2019). Although policies tend to the preview of management to
ensure implementation, it normally falls on the entire organization to drive development
of policies pertaining to change management. According to Kotter (1996) it’s impossible
for a single person to have the ability to lead and manage the change process in an
organization hence, composing a correct “guiding coalition” of individuals to lead change
initiatives is very critical in the success of the organization. This guiding coalition should
be made up of people with position power, expertise, credibility and leadership (Kotter,
1996).
Success of the change process is dependent on facilitative management and continuous
support from the top. This commences from the very notion of development of
organization policies to manage change. Good managers retain the process of change
management under control whereas good leaders generate the vision to drive the change
(Kotter, 1996). According to Caldwell (2003), change leaders are those executives or
senior managers at the very top of the organization who envision, initiate or sponsor
strategic change of a far‐reaching or transformational nature. In disparity, change
17
managers are the middle-level managers and functional specialists who carry over and
create change support within key functions and business.
2.2.4 Privatization
The question of restructuring of telecommunications companies, through
privatization, was also debated due to changes in the legislation and regulatory
frameworks of the industry. Wallsten (2000) describes privatization as a collective term
for the definition of a set of policy initiatives aimed at altering possession or
administration of an economic entity, in preference of the private sector outside the state.
Privatization as one of the economic reforms inspired by International Institution like
World Bank (WB) and International Monetary Fund (IMF) aimed at improving the
economic development and growth in many developing countries. According to Estrin
and Pelletier (2020), privatization is no longer contended to automatically create economic
gains in developing economies. A well-structured policy framework and a proper
privatization process are significant when countries want to attain a positive result. This
includes the formation of regulatory capacity, a well sequenced and functional reforms,
the enactment of complementary policies, paying attention to social and poverty impacts
and creating robust public communication.
According to Thambu (2006), policy-makers viewed state-owned enterprises (SOEs) as
their own cash cows and the bulk of policies are motivated by greed instead of an interest
in achieving the greater good of the whole community. For instance, government members
regularly selected individuals to managerial positions of SOEs, in return
for monetary handouts and other such benefits. The true cause of this trend is the failure
of the state, as the proprietor, to maximize the SOE's revenues. Also, as Wallsten (2000)
claims, the SOE's resources were instead used in many forms, other than to optimize net
revenue, for example: to fund politically charged ventures and to shield them from
congressional scrutiny; to gain voters ' support before the referendum, and even to seek
work for friends and family. As Thambu (2006) alleges, whenever efforts for privatization
emerge, political leaders systematically use heavy rhetorical artillery to thwart them,
arguing that the government should retain these assets and publicly monitor strategic
enterprises.
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Although initially aimed at strengthening the economy of many countries, changes to
privatization have been unsuccessful (Thambu, 2006) Many countries in developing
countries were not well prepared for these changes including proper frameworks to regulate
privatization process. This brought about a number of unsuccessful stories of privatization
process by many countries especially in the developing economies. Example, the main
goal, when the government of Tanzania sold shares of Tanzania Telecommunications
Company Limited (TTCL) was to improve the quality of service but these goals couldn’t
be reached due to stiff competition and poor privatization regulations. The failure to
improve its operation, in 2016 the government acquired TTCL from Bharti Airtel Company
ending its 15 years of partnership (Tanzania Daily News, 2016). Kumssa (1996), argued
that privatization isn’t the only solution in improving the performances of SOE’s. He
recommends that reforming SOE’s instead employing hasty privatization policies could
bring better results. He accompanied his argument with an example of successful story of
Zimbabwe whose national railway was reformed instead of being privatized as reported in
1994 by World Bank (WB).
2.3 Competitive Forces and Change Management
As earlier discussed, competition is an ever-present element in almost every, if not all
business environment, and should thus be taken into great consideration (Jacobs, 2002).
Competition, in the current context is defined by Ongache (2015) as the rivalry that emerges
between companies operating in the same industry, and offering similar goods and services.
Stiff competition amongst companies may prompt weak players to opt out of the industry
due to decreased sales volume and profitability, lowered product prices, or steep
operational costs (Kyengo, Ombui, & Iravo, 2016). In order for companies to remain
profitable and sustainable, analysis of their competitive forces is very prudent. Ogutu
(2015) emphasizes, different industries experience different competitive forces.
Nonetheless, five competitive forces tend to prevail across all industries, namely the threat
of new entrants, threat of substitute products or services, bargaining power of buyers,
bargaining power of suppliers, and rivalry among existing competitors – collectively
known as Porter’s Five Forces (5Ps). The subsections below further elaborate these five
competitive forces and their manifestation, so far, in Tanzania’s telecommunication
industry.
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2.3.1 Threat of New Entrants
The threat of new entrants can be defined as the fear developed by the existing industry
participants from the possibility of reduced profitability and market share, due to the
increase of new market players (Ogutu, 2015). When a given industry is observably
profitable, new individuals may seek to gain entry into the market, so as to earn these profits
too (Bruijl, 2018). Accelerated increase of new entrants, however, may pose a huge threat
to the already existent competitors due to the possibility of decreased profits and market
share, since the supply of products and services will, most likely, increase and customer
demand, decrease. To avoid such repercussions Bruijl (2018) advices that it is prudent for
the existing market players, as well as the relevant authority bodies, to make rigid the
barriers to entry in such markets. Barriers of entry, in this context, refer to the restrictions
that are put into effect to lessen the threat of new entrants. In the Kenyan telecommunication
sector, the two giant figures in the industry, namely Safaricom and Celtel (now Airtel),
were faced with this threat of entry when a newcomer, namely Econet Wireless Kenya
(EWK), was incorporated into the market in the year 2005 (Ongache, 2015). According to
Markgraf (n.d), since the variables that affect the performance of business change upon
entry of new player in the market, the need for companies to react in order to sustain their
position becomes very high. Therefore, how new player overcomes the existing entry
barriers can be key guidance to companies’ strategic reaction into these changes. He went
on to emphasis that, as market changes companies’ strategic formation to keep customers
and remain competitive ought to take into account strength of the new player.
Entry of a new player in the market brings a lot of dynamism to the industry. Players will
be forced to scramble for the market share which is finite and also the important resources
available in that market. According to Porter (2008), threats of new entrants is closely
related to barriers to entry in any industry. The higher the barriers to entry imposed in a
certain market the lesser the threats of new players and vice versa. Telecommunication
industry is a very capital intensity industry and one of its barriers to enter this market is
access to finance (Afande, 2015). Chesula and Kiriinya (2018) assert that when access to
finance is limited, the pace to enter the market become less but when capital is generous in
the market threat become more for competitive players to enter. Markets like these require
intense analysis and understanding on the capital requirements to run business in such
markets because it is an expensive business which require a lot of investments in technology
which changes with uncertainty hence competitors are required to produce enough cash
20
flow in order to cover the costs of running business as well as making required investments.
Other barriers to entry include switching costs, access to distribution channels and
government policies to name a few (Rajasekar & Raee, 2013). When new players do not
analyze the market well, their existence in that market can be very limited.
2.3.2 Rivalry among Existing Firms
Rivalry or competition among existing firms refers to the manner with which corporates
strive to attain a leading position in their current market (Ogutu, 2015). The reason why
companies tend to rival amongst themselves is because they are participants in the same
field of work and, therefore, have to solicit approval from the same group of clienteles to
purchase their products and services. Intense rivalry can occur due to several factors,
including: first, the leader(s) can enforce discipline and play a coordinating role in the
industry by using devices like price-leaders, in which an industry is highly concentrated /
dominated by one or few companies (Ongache, 2015). Where organizations are evenly
balanced in terms of size and capital (perceived), instability may arise. Second, the slow
growth of the sector as companies struggles for shares. Thirdly, high fixed costs-companies
can seek to make maximum use of resources by ramping up production. This could
trigger price wars due to over-supply (Oteri, Kibet, & Ndungu, 2015). Fourthly, failure of
identifying costs or costs for transition. Fifthly, efficiency has increased significantly,
hence increasing the over-supply power. Sixth, highly competitive risk–where a single
organization is of strategic importance, which contributes to a scenario where a business is
prepared to pay anything to safeguard it (Sande, 2014). Lastly, wide exit barriers, such as
the incapacity to make expensive equipment accessible for all other applications. Tax
credits could also be claimed only if there are ongoing operations.
Bruijl (2018) also adds that competitor rivalry is high when there are too many existing
firms in a given market, elevated operational costs, negligible brand loyalty, low product
differentiation, increased price wars, and a slow-paced industry growth. An extremely high
competitor rivalry poses a huge risk to existing firms because it can compel them to exit
the market, due to decreased profits and revenue, as well high taxation and operational
expenses (Bruijl, 2018). To reduce competitor rivalry, firms are urged to implement product
differentiation, cost leadership, and correct identification of focus strategies or market
niches (Ongache, 2015). For example, Vodacom, Tigo Tanzania and Airtel have achieved
market success because of their impeccable product differentiation. They have cemented
21
their capacity as the market leaders in the telecommunications sector in Tanzania, thanks
to their mobile money transfer service. It comprises a means with which users can
electronically send and receive money, over long distances, as well as pay bills and buy
goods and services (Keter, 2015).
In economies with many price-sensitive consumers, the effort to be the general low-cost
supplier for the industry constitutes a powerful dynamic approach (Sande, 2014). Low-cost
leadership is reached by a company when it becomes the lowest cost supplier in the market.
A business has two ways to gain an affordable profitability over rivals. As Sande (2014)
states, the first alternative is to use the lower-cost advantage to underprice rivals and to
entice price-sensitive buyers in large numbers to increase overall profits. The second
alternative is to maintain the current price, hold to the current market share, and use the
lower cost advantage to gain higher profit margins on every selling unit, thereby increasing
the company's overall revenue and investment income (Sande, 2014). One of the companies
in Tanzania that is using the first option given above is Tigo Tanzania. Tigo launched in
2019 an offer called “saizi yako” aimed at customizing internet, voice and sms packages
based on the needs and usage of customer. Here customer gets more of what they use and
can afford (Tigo, 2019).
In order for companies to remain profitable, be ahead of the game and relevant, Ishmael
(2014) observed that changes on how companies do businesses is inevitable. He went on
emphasizing that competition among other factors causes companies to radically change
how they do business as the global landscape changes. The ability to repeatedly build
capacity to adequately involve employees in order to gain their commitment and ensure
timely and profitable delivery is the degree to which companies improve at changing. When
such attributes are well leveraged by companies, it will create a better position for a
company vis-a-vis rivals in the competition and gain the revered competitive advantage.
For it to be a good or great change management, it all centers on the ability of a company
to respond to market changes rapidly and efficiently with less resources than its rivals
(Goldsworthy & McFarland, 2017). Ferreira and Kittsteiner (2012) showed that increasing
competitive pressure to a company’s proposed strategy can either deliver credibility or
render it obsolete. Whichever case, competitive pressure aids employees to direct their
efforts and execute changes to the company structure that will improve profitability through
cost reduction and hence improve firm’s capacity to compete.
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2.3.3 Bargaining Power of Suppliers
The third competitive force is the bargaining power of suppliers. According to Bruijl
(2018), the bargaining power of suppliers is the manner with which suppliers can
manipulate a given industry and draw profits by price hikes, quality diluting, or
intentionally decreasing product availability. Suppliers may assert bargaining power over
other market participants by promising to increase prices or reducing the value of their
supplies and commodities. Strong suppliers can thus drive profitability from an industry.
As Jeremiah, Kabeyi, Moses, and Kabeyi (2018) explain, the bargaining power of suppliers
is determined by several factors, including the abundance of suppliers in the market; the
switching costs between different suppliers; and the availability of suppliers for immediate
transactions.
The bargaining power of suppliers is particularly strong when the switching costs are high;
that is to mean – companies have to incur huge expenses to changeover from one supplier
to the next (Ogutu, 2015). Usually, establishing a working contract with any supplier is an
expensive task, since there are many logistics to be set up; hence changing over to a
different supplier would similarly be an equally costly agenda for the clientele. For
example, Safaricom would be forced to incur huge expenses to changeover from Siemens
(its current main supplier) to another supplier. Another factor which contributes to a high
supplier-bargaining power would be when the number of suppliers is minimal in the
market, or when the suppliers are not readily available for immediate transactions (Jeremiah
et al., 2018). In such circumstances, companies are forced to seek out a second option,
which may not be the best choice for that entity, since costs may be even higher and the
products/services offered may not be the most ideal at that given time.
Understanding the effect of supplier changes on buying organization and the other way
round, is very critical in the success of organization change management. According to
Scarborough (2013), relationship between the organization and its suppliers is determine
by individual organization’s approach to change and change management as well as the
rate of change being introduced; this will in turn determine success of service delivery.
Furthermore, regularly involving suppliers in change management activities of
organization is to avoid surprise changes that can be introduced by suppliers which may
have considerable impact on the company’s services. By actively engaging organizations
in supplier’s activities is to ensure buying organization have a voice in any changes.
23
Successful change management makes sure that risk is optimized and communication
occurs. Communication failure between organizations and its suppliers, can cause negative
effects for one another. One way to evade negative effect and to improve general
performance of supplier is to frequently engage in collective change management
responsibilities and activities (Scarborough, 2013).
2.3.4 Bargaining Power of Buyers
Just like the suppliers’ bargaining power, buyers too or consumers can exercise their
bargaining power on companies hence, influence competition within an industry by
coercing them to reduce their prices or deliver products/services of a higher quality than is
presently available (Bruijl, 2018). Since consumers are ‘key’, firms may struggle to appease
their needs, while hurting their industry margins and further increasing competition (Ogutu,
2015). Consumers compete with the market by lowering prices, negotiating for products
and services of a higher quality, and playing rivals against each other at the detriment of
the firms' profitability. As Ngobia (2003) asserts, the strength of the buyer groups varies
depending on the characteristics of their market situation and the relative importance of
their acquisition in comparison with other companies. Purchaser classes become effective
especially when they buy large quantities relative to dealers; or when the consumers
purchase the majority of the products and services; or when the firm's services are standard
undifferentiated.
As Ogutu (2015) elaborates, bargaining power of buyers increase with an increase in the
number of selling companies available, product substitutes, and low switching costs.
According to Ongache (2015), the reason why buyers negotiate for lower product/service
prices is attributable to economic declines and high cost of living. For this reason, telecom
companies in Tanzania have actively decreased their prices for most of their products and
services, exerting price war in the market in an effort to accommodate the low-income
clientele. These price wars have affected adversely small players like Smile who suffered
from customer churn forcing it to exit the market in 2019 (Lancaster, 2020). Adekiye
(2016), explains that as the world changes, needs of customer grow and change, generating
new demand for new types of products and services. This unlocks new opportunity for
organizations to encounter those needs.
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2.3.5 Threat of Substitutes
Finally, industry competition is also influenced by the threat of substitute products or
services. Bruijl (2018) defines the threat of substitutes as the risk posed by the ready
availability of alternative products or services, similar to a given industry or firm. The threat
of substitutes can be minimized through differentiation tactics. When the needs and desires
of consumers are too complex to be fully satisfied by a single service or sellers with similar
capabilities, then differentiation strategies become attractive (Ongache, 2015). For this
reason, companies should therefore study the needs and actions of purchasers carefully to
understand what they feel is worthwhile and what they are prepared to pay for. After a
thorough customer analysis, the firm can then integrate the buyer-desired attributes into
its marketing model, so as to clearly distinguish themselves from other major competitors.
When the extra value the brand commands exceeds the additional costs of achieving
differentiation, differentiation increases profitability.
As Oxford Business Group (2018) analyzes, telecom companies in Tanzania i.e Vodacom,
Tigo, Airtel, Zantel, Halotel and TTCL offer similar products and services, such as voice
calls, internet service provision, mobile money and sale of mobile accessories, hence the
increase of the threat of substitutes. The threat of substitutes escalates particularly when
clientele switching costs are minimal or when the substitute item is cheaper in price, or is
higher in quality, compared to the industry product. The threat of substitutes is a prevalent
issue in the local telecommunications sector, as is evident in the rivalry between the
companies. While TTCL largely focuses on provision of fixed-line services, Vodacom,
Airtel, Tigo and Halotel, on the other hand, is fixated on service and delivery of mobile
telephony. Mobile telephony, in this case, is a substitute to the fixed-line services, thanks
to the various benefits it offers such as portability, smart phone technology, application
installation, internet connectivity, and compactness (Kyengo et al., 2016). As a result,
competition between these companies has surged. As Luenendonk (2019) explain,
substitutes are not recognized immediately because they often come from outside the
industry in which the company operates. The danger becomes more intense when a
company focuses more on managing its direct competitors and may miss the forthcoming
threat of a substitute. Henceforth, companies are required to pay special attention in
identifying the threats of substitutes and develop change strategies that counter it in the
long run.
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2.4 Technological Advancements and Change Management
As earlier stated, technology involves the utilization of available resources, including
information communication, skills, knowledge and intellectual capacity, and tools, to find
a solution to identifiable problems (Wahab et al., 2012). As life progresses, new ideas and
innovations are borne and implemented to help solve global problems, such as hunger, data
automation, communication, transport, healthcare, and education empowerment among
many other examples. Finding solutions to these problems creates an opportunity for
technology to advance and prevail in the present-day society (Kiplimo, 2004). Gachagua
(2004) further explains that the need for technological advancements stems from the
pressure from consumers on service providers, and manufacturers, to provide products and
services that have a high quality, are simple to use, are cheap and affordable, and have a
long lifespan.
Technology can be a significant element in organizational change management. It can be
used to drive change in organization or itself drives the changes in organization. The
problem with using technology to drive change in organizations is that, technology can
change quicker than people i.e., as technology develops exponentially, organization
absorption to change become very slow. Hence, in order to efficiently implement changes
in organization, technology should be used to support the process rather than depending on
it to make the change. When technology itself introduces change in organization or
industry, will pose constant threats to the organization and embracing these technological
changes ahead of competition requires companies finding ways to advance their operations
to stay competitive (Laserfiche, n.d.). According to Roe (2019), this role technology has
in initiating change in the organization can’t be overrated. Silos of information, people,
content and processes are universal across most businesses. He claims that in the digital
age, companies require better resource connectivity to deliver improved focus, clarity and
agility in order to quickly respond to the changes brought by digitization.
2.4.1 Automation of Systems
Developments in technology offer companies with the prospect to dwell their decision-
making authority at the optimal level. Telecommunication firms use technology to centralize
purchasing and logistics to take advantage of cost savings. Decentralizing responses to
customer needs has provided the opportunity for firms to tailor marketing decisions to fit
local markets (Schwab, 2016). These companies have also taken advantage of advances in
26
communications technology to integrate their computer systems with their customers and
suppliers. Specialization is generally defined as the Lewin's Change Management Model is
a simple and easy-to-understand framework for managing change. Developed by Kurt
Lewin in 1940, the model has three distinct stages to change implementation that can be
practically implemented within an organizational setting. The model is often called the
Unfreeze – Change – Refreeze, which refers to the three-stage process of change (Lewin,
1946). The three-step model is associated with intentional change in the organization and
change initiators may choose to use a range of strategies to implement the intended change.
According to Lewin (1946), the first step in the process of change is to unfreeze the existing
situation or status quo. The status quo is considered the equilibrium state. Unfreezing is
necessary to overcome the strains of individual resistance and group conformity; the second
step of this process is movement.
In this step, it is necessary to move the target system to a new level of equilibrium. The
third step of the change model is refreezing. This step needs to take place after the change
has been implemented in order for it to be sustained over time (Robbins & Judge, 2013). A
key aspect of specialization is consolidation of the gains from the changes. Kotter states that
it may be tempting for managers to declare victory after the first signs of performance
improvement are visible. It is crucial for leaders to use these short‐term gains in order to
tackle other issues, such as systems and structures that are not in line with the recently
implemented changes (Kotter, 1995). Pfeifer, Schmitt and Voigt (2005) argue that verifying
the credibility of vision and strategy through the use of measurable results is the main goal
for gathering first successes. Management will require these first successes to plan for the
further change process, and be able to partially justify the short‐term costs incurred through
change (Pfeifer et al., 2005). Consolidating gains can also involve determining the
commitment of the employees to the change process over the short period with the
miniscule success parameters. Committed employees are subsequently less resistant and
less likely to want to maintain the status quo (Jansen, 2004). On the other hand,
uncommitted employees or those who have lost their commitment over time are more likely
to resist the change‐based path (Hirschhorn, 2002). According to Kerber and Buono (2005),
changes associated with continuous improvement methods and transformative,
breakthrough changes can be made by encouraging people to initiate and experiment with
changing.
27
The path to an effective automation implementation could be smooth and seamless for some
companies, but also strenuous and prolonged for others. Successful automation is closely
correlated to the organization’s capability to comprehend, design, and manage change
(Stumpf, 2018). According to Stumpf (2018), automated material handling systems are
certainly complex, hence, complex organizational change is essential to successfully
implement and manage these systems. Moreover, understanding people and all the areas in
the organization being affected indirectly and directly by the project marks the first step in
attaining success. According to Bresler (2019), in the process of making sure new
automation system results are highly supported, executed effectively and actually used by
employees, change management best methods should be followed and customized to the
inimitable challenges automation present. This can be attained by closely working with key
stakeholders in the company, communicate main challenges and concentrating on the
benefits that will be brought by new solutions.
2.4.2 Provision of Better, Higher Quality Products and Services
Numerous technological advancements are evident in the telecommunications sector, such
as the shift from the use of the archaic postal and telegraph services, to the modern use of
mobile telephony, Voice over Internet Protocol (VoIP), and other multimedia services
(Gachagua, 2004). The first telephone was invented by the renowned legend, Alexander
Graham Bell, using basic electromagnetic transmitters and receivers (Mutungi, 2010). This
invention basically used a multi-reed wire to transmit voice telegraphically. Bell’s
telephone was an intelligent creation, but was limited to communication only over short
distances, because of the basic equipment used (Mutungi, 2010). Therefore, more research
had to be conducted on how to further develop the telephone technology to allow
communication over long distances. Long-distance telephones were later invented,
followed by fixed-line services, and, presently, the mobile telephony. All these
development phases have been made possible with the emergence and invent of the
information and communication technology (ICT).
While traditional inventions such as telegraphs, fax, and fixed-line services helped
jumpstart data communication, the mobile telephony is the technology with the highest
level of impact, with regards to fast and automated communication (Waema & Ndung’u,
2012). Postal services, fax, and telegraph services are limited as they are slow and bulky;
for example, for one to receive a letter from the postal services, one had to wait a week or
28
so. However, with mobile phones, message communication is instant, hence greatly
reducing the wait time (Waema et al., 2012). Besides the improved speed, mobile phones
are also compact and small in size, thus are easily portable. Also, mobile phones are fitted
with smart artificial intelligence that enables consumers enjoy various benefits such as
paying bills on their phones, sending emails, mobile banking, social media networking and
entertainment, watching news and updates, and even working online.
Competition pressure has changed a lot the way businesses function in this technology era.
Companies are forced to look not only at the processes but also how products and services
are delivered. In order for companies to survive especially telecoms delivering exceptional
product and service should be their top priority. According to Abd-Elrahman (2018), the
increased customer awareness and knowledge, use of Information Technology (IT), open
market etc. requires new understanding of quality product and services by companies in
order to navigate through these changes. Santos (2003), emphasized that, provision of
quality product and service is highly correlated with company’s competitive advantage. In
order for firms to increase their performances, profits, customer loyalty and customer
satisfaction, it is important for firms to measure the quality of their products and services
in order to recognize problems and manage delivery of products and services which in turn
becomes a basis for employee’s rewards.
2.4.3 Globalization
Besides provision of better and higher quality services, technological advancements have
also enabled growth of the telecommunications industry beyond national borders, to
regional and international zones (Kiplimo, 2004). Proliferated advancements in the
information and communication technology have brought forth developments such as
accelerated internet connectivity, which people increasingly use to communicate with other
people in other countries and continents through social media platforms and email. People
can also send and receive money using advanced mobile money transfer systems, work for
overseas companies using online-based freelance jobs, and even keep updated with recent
news posts about other countries (Waema et al., 2012). As a result, globalization emerges
as the distance between different countries and continents is virtually decreased.
According to Lebesmuehlbacher (2016), globalization has brought about significant shifts
in worldwide business practices. Countries are shifting from a world in which national
economies are largely self-sustained bodies, which are separated from one another by cross-
29
border barriers; distance, space, regions and language, and by regional variations in terms
of law, society, and business processes (Waema et al., 2012). The globe is transitioning
towards a future where obstacles to international trade and investment are being overcome;
perceived distance declines because of developments in transportation and
telecommunications; the overall way of life is starting to look alike in the entire world; and
domestic economies merge into a world economy that is interconnected. The
interconnected world economy has been an environment in which the production of goods,
services and investment has been rising year after year. In this worldwide system, foreign
exchange transactions amount to more than $1.2 billion on a daily basis (Kiplimo, 2004).
Globalization has generated worldwide platforms whereby businesses can freely transact
with each other through free or unregulated markets, hence benefiting the companies
through reduced overhead costs and expenses.
As Lebesmuehlbacher (2016) states, globalization, as a result of technological
advancements, influences several changes in the running and administration of the industry
players in the telecommunications sector. To begin with, globalization helps increase a
company’s profitability since more customers use the service to reach out to their
counterparts overseas, hence more revenue for the firm. The company also gains
recognition in other countries, hence higher opportunities for business expansion and
market penetration overseas. Crossover to other countries may also help the company to
get into profitable contracts with other firms, as well as secure foreign direct investments
from potential investors (Aker & Mbiti, 2010). For these reasons, companies are really
encouraged to widen their market, past the national scopes, and into international zones, as
they can greatly benefit from a wider international clientele, as well as a global market
share, especially if their domestic domain is limited.
As much as globalization poses several benefits, it compels the companies to make various
adjustments to accommodate these changes. For instance, different countries have different
sets of regulatory and administrative rules which govern the way businesses are run
(Kiplimo, 2004). In order to operate in different countries, companies have to comply with
these rules, as need be, so as to be legally compliant and not face legal suits for non-
compliance. Legal compliance is expensive as new legal staff have to be contracted to
ensure that the company is always in adherence to the country’s regulatory laws. Also, the
companies have to pay attention to other key concerns, such as taxation fees and employee
30
working conditions, which may hurt the company’s profit margins (Waema et al., 2012).
According to Beck (n.d.), in the global trade that is rapidly growing, it is essential for
companies to quickly implement changes and through technology this can be
accomplished. New products must be brought quickly to the market in order to meet
customer’s quality demands. Furthermore, in order to thrive in global marketplace,
companies must also drive-out needless administrative and development steps to reduce
product development times and costs. The evolution of global standards in business
processes and quality has also accelerated the requirement for companies’ usage of
technology to execute the needed changes to encounter new requirements.
2.4.4 Obsolescence
Another product of technological advancements is product obsolescence. Product
obsolescence, in this context, refers to the process with which products gradually become
less practical in use due to either the emergence of new innovations or completion of the
product’s lifespan, hence the products become discontinued (Keeble, 2013). When
technological advancements increase, newer innovations of products emerge, leading to a
replacement or discontinuance of the older technologies (Keeble, 2013). The
discontinuation of products is a big loss for companies which have placed heavy
investments into these products. For this reason, obsolescence management is necessary to
avoid any setbacks from changes in technological advancements.
There are various types of obsolescence, such as technical, functional, and style
obsolescence. Technical obsolescence typically happens when the old technology is
superseded by a product on the market or technology, and the new innovations are instead
favored (Keeble, 2013). Typical examples of old technology are fixed-line telephones and
pay phones and bulky mobile handsets, which have now been replaced by thin and sleek
mobile handsets. A certain model can become outdated in a lesser scale if a newer version
supplants it. Most devices in the software and telecommunications industry are thus
obsolete. As Amolo and Beharry-Ramraj (2016) state, in particular, fast obsolescence of
data, along with supporting architecture, can give rise to critical information loss, a
phenomenon known as digital obsolescence. In many situations, however, the emerging
technology does not wholly supplant the older technology, since in some applications the
old technology is still practical (Amolo & Beharry-Ramraj, 2016). Goods may
become outdated if the technology enabling the development, or even maintenance of an
31
item, are no longer accessible. Also, products may become outdated since their original
developer is out of business or a rival bought and destroyed their products to effectively
eliminate the rivalry. Rarely is it worth redeveloping a service to deal with these problems
because it has also often been ousted by this time.
Functional obsolescence, in contrary, refers to when items become obsolete in function as
they cannot perform the function they are designed for, anymore (Amolo & Beharry-
Ramraj, 2016). For example, while a telegraph transmitter could be potentially modified to
deliver wireless signals, it would have proven to be essentially useless to do so against
the current mobile telephony age. According to Amolo and Beharry-Ramraj (2016),
manufacturing companies and repair firms will usually stop supporting products once they
become unusable, since it becomes unprofitable to keep production lines in place and
storage components for a declining user base. This triggers a lack of replacement parts and
professional service workers and hence increases the cost of servicing of old products. In
the result, it adds to prohibitive expenses in sustaining the operation of old technologies.
Planned obsolescence, on the other hand, is whereby advertisers often purposely introduce
obsolescence to their brand strategy, by shortening the time between repurchases in order to
generate long-term sales volume; while the obsolescence of style is when an item is no longer
wanted because its style is archaic (Amolo & Beharry-Ramraj, 2016). According to
Armstrong and Green (2017) an ideal obsolescence management is demand forecasting.
Demand forecasting refers to the act of projecting the level of demand for a given product,
or component, in the future, within a competitive environment (Armstrong & Green, 2017).
If firms adopt good demand forecasting practices, they can prevent against high obsolescence
losses by only keeping the right volumes of products in their inventories. Also, firms can
further prevent obsolescence by practicing obsolescence monitoring and conducting
activities such as lifetime buys.
2.5 Chapter Summary
This chapter reviewed literature from other scholars, researchers and academicians on how
policy framework affects change management at telecommunication companies in
Tanzania, how competitive forces affect change management at telecommunication
companies in Tanzania and how technological advancement affect change management at
telecommunication companies in Tanzania. The next chapter provides research
methodology that will be applied.
32
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
This chapter presents the methods and procedures researcher used when undertaking the
study. It contains the following elements discussed accordingly; research design,
population and sampling design, data collection methods, research procedures, data
analysis methods and chapter summary.
3.2 Research Design
Research design is a framework of methods and techniques nominated by a researcher to
merge together different components of research in a logical manner in order to handle the
research problem efficiently (Bhat, 2019). Cooper and Schindler (2014) defined research
design as strategy of investigation which is considered by researcher to acquire answers to
research questions. It is an outline for collection, measurement and analysis of data (Cooper
& Schindler, 2014).
This study used a descriptive design. This design is appropriate for this study since the
researcher was seeking to formalize and structure the research questions such that data
collected will best describe the situation. According to Saunders, Lewis and Thornhill
(2016), research questions that use descriptive studies are likely to begin with ‘Who’,
‘What’, ‘Where’, ‘When’ or ‘How’. This study adapted survey strategy using
questionnaires which allowed collection of data from substantial population that is
standardized to simplify comparison.
3.3 Population and Sampling Design
3.3.1 Population
According to Kenton (2019), population is defined as the overall pool where a statistical
sample is drawn. Cooper and Schindler (2014) defined population as total collection of
individual or objects on which researcher wish to make some inferences. For a group to be
regarded as population, members should share one or more attribute/s (Asiamah, Mensah,
& Oteng-Abayie, 2017). Population for this study comprised of all employees at Airtel,
Tigo and Vodacom all situated in Tanzania and target population was limited to employees
holding managerial position in the three companies who were approximately 150.
33
3.3.2 Sampling Design
3.3.2.1 Sampling Frame
Sampling frame is a complete list of all cases in the target population from which your
sample will be drawn (Saunders, Lewis, & Thornhill, 2016). Sampling frame is very
important when probability sample is used, if sampling frame is missing non-probability
has to be used. In this study the sampling frame comprised of employees holding
managerial position at Airtel, Tigo and Vodacom Tanzania who are representative enough
to respond adequately to the research objectives and the list was obtained from Human
Resource (HR) office of respective company.
3.3.2.2 Sampling Technique
A sampling technique is defined as the method that a researcher uses to pick a sample size
from the entire population (Cooper & Schindler, 2014). This study employed census
technique.
3.3.2.3 Sample size
Sample size is the total number of sampling units that is selected from the chosen
population for analysis (Dessler, 2013). It is noted that the larger the sample size, the lesser
the expected error in capturing a compressive view of the population. This study used entire
target population of 150 as sample size and was distributed as shown in Table 3.1 below:
Table 3.1: Sample Size Distribution
Company Sample Size Percentage
Airtel Tanzania 20 13.3
Tigo Tanzania 30 20
Vodacom Tanzania 100 66.7
Total 150 100
3.4 Data Collection Methods
Data collection is the process of assembling and measuring information on selected
variables in a systematic manner that will enable the researcher to answer related questions
and assess results (Cooper & Schindler, 2003). This study used primary data that was
collected using questionnaires with a five level Likert scale ranging from strongly disagree,
disagree, neutral, agree and strongly agree. The questionnaire contained 5 section. Section
A dealt with demographic information of the respondents, section B dealt with police
34
framework, section C dealt with competitive forces, section D dealt with technological
advancement and section E dealt with change management (to evaluate ones understanding
of change management) (Appendix II). All the data collected was treated with high
confidentiality where the researcher locked all documents in a safe box and can be accessed
by the researcher only. In case of any other individual wants to access the data, will be
required to sign a confidentiality form. Also, this data was collected after the researcher
was cleared by Institutional Review Board (IRB) and National Commission for Science,
Technology and Innovation (NACOSTI).
3.5 Research Procedure
Preceding data collection, the work was reviewed by IRB and clearance was issued together
with introduction letter from USIU-Africa which was used for application to NACOSTI in
order to obtain permit to collect data. Upon receiving the permit letter from NACOSTI, the
researcher collected authorization letter from department of school of business and
submitted both letters to Airtel, Tigo and Vodacom situated in Tanzania. Once the approval
was granted, the researcher conducted a pilot questionnaire to 10 randomly selected
employees to ensure reliability and validity. Feedback from the pilot questionnaires guided
the researcher on adjusting the questionnaires. After adjusting the questionnaires, they were
submitted to the three companies using google form. All data were collected legally and
high level of confidentiality was maintained and was used for academic purposes.
3.6 Data Analysis Method
Data analysis is a research technique for the objective, systematic and qualitative
description of the manifest content of a communication (Cooper & Schindler, 2003).
Information obtained from data collection was analyzed using descriptive statistics. Under
descriptive statistics, inferential statistics including regression was used to measure the
relationships on variables that was observed and correlated. Statistical Package for Social
Sciences (SPSS) program was used to interpret the information in tables and figures.
Correlations and regression methods were the main inferential statistics that were used to
test the significance of the relationship between variables and it involved partial correlation
which measured association between two variables while adjusting the effect of one or
more additional variables.
35
3.7 Chapter Summary
This chapter highlighted the research methodology that was adopted in this study to answer
the research questions. Population of 150 employees holding managerial position at Airtel,
Tigo and Vodacom Tanzania was targeted and data was collected using questionnaires.
Descriptive statistics was adopted to analyze the collected data and the information was
interpreted and presented in figures and tables using SPSS. The next chapter provided
results and findings that was analyzed.
36
CHAPTER FOUR
4.0 RESULTS AND FINDINGS
4.1 Introduction
This chapter delivers analysis and interpretation of the data collected using methods
discussed in chapter 3 and the findings are discussed in different sections using figures and
tables. The first section presented the results and findings on demographic information of
the respondents, the second to fourth section are on the research questions: the effect of
policy framework, competitive forces, and technological advancement on change
management, and the last section discusses the results and finding on change management.
4.2 Demographic Information
4.2.1 Response Rate
This study targeted 150 respondents and the same number of questionnaires were
distributed. Out of 150 respondents, only 103 responded presenting a response rate of
68.7%. According to Mugenda and Mugenda (2003), a response rate of 50% was adequate,
60% was good and 70% was very good.
4.2.2 Respondent’s Gender
The findings discovered that 89% of the respondents were males while 11% were females
as shown in Figure 4.1 below. These results indicate that majority of the male hold
managerial positions compared to female.
Figure 4.1: Gender
4.2.3 Respondent’s Age
The findings discovered that majority of respondents were of age 34-41 years covering
42.72%, 29.13% were 26-33 years old, 23.30% were 42-49 years old, and 4.85% were
above 50 years old. These findings as shown in Figure 4.2 indicate that telecom companies
89%
11%
Male Female
37
in Tanzania incorporate young and old minds during decision making keeping them in a
competitive position to face changes.
Figure 4.2: Age
4.2.4 Respondent’s Education Level
According to the findings presented in Figure 4.3, 60.19% of the respondents had attained
a master’s degree, followed by 24.27% who attained a bachelor’s degree and 15.53%
attained a doctorate. None of the respondent’s highest level of education were secondary,
certificate, or diploma which is a good thing in articulating the issue under study.
Figure 4.3: Education Level
4.2.5 Respondent’s Telecommunication Company
The findings revealed that 51% of the respondents came from Vodacom Tanzania, 27%
from Tigo Tanzania, and 22% from Airtel Tanzania as shown in Figure 4.4 below. These
results indicate that Vodacom Tanzania has contributed more to this study than the rest of
the companies.
29.13%
42.72%
23.30%
4.85%
0
5
10
15
20
25
30
35
40
45
26-33 years 34-41 years 42-49 years Above 50 years
24.27%
60.19%
15.53%
0
10
20
30
40
50
60
70
Degree Masters Doctorate
38
Figure 4.4: Telecommunication Company
4.2.6 Respondent’s Period of Working in the Company
The period in which the respondent worked in the company as presented in Figure 4.5
below shows that 33% worked for 6-10 years, followed by 26% who worked for 1-5 years,
21% worked for above 10 years, and 19% worked below 1 year in the same company.
These findings indicate that the respondents are familiar enough with the changes
happening in the company.
Figure 4.5: Period of Working in the Company
4.3 Policy Framework and Change Management
In this section, analysis of data was done for the first objective of the study which aimed at
discovering whether policy framework affects change management in telecommunication
companies in Tanzania. The results of the analyzed data are also presented in this section
using descriptive and inferential analysis.
23.30%
26.21%50.49%
Airtel Tanzania Tigo Tanzania Vodacom Tanzania
19.42%
26.21%
33.01%
21.36%
0
5
10
15
20
25
30
35
Below 1 year 1-5 years 6-10 years Above 10 years
39
4.3.1 Descriptive for Policy Framework and Change Management.
Questions under this objective required respondents to indicate their level of agreement
using a Likert scale ranging 1- “strongly disagree” and 5- “strongly agree”. From Table 4.1
below, a significant variable that the majority of the respondents agreed upon was, changes
in internal policies have steered better decision making (M=4.48, SD=0.89).
Table 4.1: Descriptive for Policy Framework and Change Management.
N Mean
Std.
Deviation
New laws kept in place by the government have improved the
change management process.
103 4.04 1.07
Improvements on legislations for the ICT industry has
boosted the change management process
103 4.09 1.08
Unanticipated regulations affected the change process of
your company
103 4.11 0.98
Government relationship with our company has improved
change management process
103 3.97 1.01
Our company made impeccable changes following
government adjustments to legislation
103 4.08 1.03
Current organization policies are influenced by government
laws
103 4.13 0.91
The change process has led to enhancements of the
company’s policies
103 4.12 0.84
Changes in privatization policies have impacted our company
change process
103 3.99 0.90
Our internal policies change with changes in the industry 103 4.17 0.93
Our company works closely with the government to bring
about change in the industry policy.
103 4.42 0.92
Changes in our internal policies have steered better decision
making
103 4.48 0.89
Industry policies have a significant impact on the changes in
our organization
103 4.31 0.87
Privatization policies have boosted changes in the company 103 4.28 0.92
Current policy framework is sufficient to undertake changes
in our company.
103 4.13 1.04
Regulation of policies has steered the change management
process
103 4.25 0.93
40
New laws kept in place by the government have improved the change management process
had a mean of 4.03 signifying some truth in the statement, improvements on legislations
for the ICT industry has boosted the change management process had a mean of 4.09
signifying some truth in the statement, unanticipated regulations affected the change
process of your company had a mean of 4.11 signifying some truth in the statement,
government relationship with our company has improved change management process had
a mean of 3.97 signifying some truth in the statement, our company made impeccable
changes following government adjustments to the legislation had a mean of 4.08 signifying
some truth in the statement, Current organization policies are influenced by government
laws had a mean of 4.13 signifying some truth in the statement.
The change process has led to enhancements of the company’s policies had a mean of 4.13
signifying some truth in the statement, changes in privatization policies have impacted our
company change process had a mean 3.99 signifying some truth in the statement, our
internal policies change with changes in the industry had a mean 4.17 signifying some truth
in the statement, our company works closely with the government to bring about change in
the industry policy had a mean a 4.42 signifying some truth in the statement, industry
policies have a significant impact on the changes in our organization had a mean of 4.31
signifying some truth in the statement, privatization policies have boosted changes in the
company had a mean of 4.28 signifying some truth in the statement, current policy
framework is sufficient to undertake changes in our company had a mean of 4.13 signifying
some truth in the statement, regulation of policies has steered the change management
process had a mean of 4.25 signifying some truth in the statement.
4.3.2 Frequency Analysis for Policy Framework and Change Management
Table 4.2 below shows that new laws kept in place by the government have improved the
change management process as agreed by 67% of respondents, 6.8% disagreed, and 26.2%
were neutral. Improvements in legislation for the ICT industry have boosted the change
management process as agreed by 69.9% of respondents, 5.8% disagree, and 24.3% were
neutral. Unanticipated regulations affected the change process of your company as agreed
by 70.8% of respondents, 3.8% disagree, and 25.2% were neutral. Government relationship
with our company has improved change management process was disagreed by 8.8% of
respondents, 23.3% were neutral, and 67.9% agreed.
41
Table 4.2: Frequency Analysis for Policy Framework and Change Management
SD D M A SA TOTAL
% % % % % %
New laws kept in place by the government have
improved the change management process. 3 4 26 20 47 100
Improvements on legislations for the ICT industry
has boosted the change management process 4 2 24 21 49 100
Unanticipated regulations affected the change
process of your company 2 2 25 25 46 100
Government relationship with our company has
improved change management process 1 8 23 29 39 100
Our company made impeccable changes following
government adjustments to the legislation. 2 6 19 28 45 100
Current organization policies are influenced by
government laws 2 1 21 34 42 100
The change process has led to enhancements of the
company’s policies 1 1 21 39 38 100
Changes in privatization policies have impacted our
company change process 1 4 23 39 33 100
Our internal policies change with changes in the
industry 2 2 18 32 46 100
Our company works closely with the government to
bring about change in the industry policy. 2 5 3.9 28 61 100
Changes in our internal policies have steered better
decision making 2 3 6.8 22 66 100
Industry policies have a significant impact on the
changes in our organization 1 4 9.7 34 52 100
Privatization policies have boosted changes in the
company 1 6 8.7 33 52 100
Current policy framework is sufficient to undertake
changes in our company. 3 6 14 31 47 100
Regulation of policies has steered the change
management process. 2 4 9.7 36 49 100
Our company made impeccable changes following government adjustments to legislation,
7.7% of respondents disagreed, 19.4 were neutral, and 72.9% agreed. Current organization
policies are influenced by government laws as agreed by 75.7% of respondents, 2.9%
disagreed, and 21.4% were neutral. The change process has led to enhancements of the
company’s policies as agreed by 76.7% of respondents, 21.4% were neutral, and 2.0%
disagreed. Changes in privatization policies have impacted our company change process
42
was disagreed by 4.9% of respondents, 23.3% were neutral, and 71.8% agreed. Our internal
policies change with changes in the industry as agreed by 77.6% of respondents, 3.8%
disagreed, and 18.4% were neutral. Our company works closely with the government to
bring about change in the industry policy as agreed by 89.4% of respondents, 3.9% were
neutral, and 6.8% disagreed.
Changes in our internal policies have steered better decision-making as agreed by 88.3%
of respondents, 6.8% were neutral, and 4.8% disagreed. Industry policies have a significant
impact on the changes in our organization as was disagreed by 4.9% of respondents, 9.7%
were neutral, and 85.5% agreed. Privatization policies have boosted changes in the
company as agreed by 84.5% of respondents, 8.7% were neutral, and 6.8% disagreed. The
current policy framework is sufficient to undertake changes in our company was agreed by
77.7% of respondents, 13.6% were neutral, and 8.7% disagreed. Regulation of policies has
steered the change management process as agreed by 84.4% of respondents, 9.7% were
neutral, and 5.8% disagreed.
4.3.3 Correlation analysis for Policy Framework and Change Management
In this section, correlation analysis between policy framework and change management
was conducted to assess the significance factor of policy framework on change
management. From Table 4.3 below, the results show that the policy framework was
significant on change management with a positive correlation (r=0.225, p<0.05).
Table 4.3: Correlation analysis for Policy Framework and Change Management
Policy Framework
Change
Management
Policy
Framework
Pearson Correlation 1 .225*
Sig. (2-tailed) 0.022
Change
Management
Pearson Correlation .225* 1
Sig. (2-tailed) 0.022
*. Correlation is significant at the 0.05 level (2-tailed).
4.3.4 Regression Analysis for Policy Framework and Change Management
4.3.4.1 Model Summary for Policy Framework and Change Management
The Summary of a regression model is presented in Table 4.4 below for policy framework
and change management. It shows R square is 0.051 which means that 5.1% of the variance
in change management could be explained by the policy framework.
43
Table 4.4: Model Summary for Policy Framework and Change Management
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate 1 .225a 0.051 0.041 1.04466
a. Predictors: (Constant), Policy Framework
4.3.4.2 ANOVA for Policy Framework and Change Management
Table 4.5 below shows the analysis of variance (ANOVA) for policy framework and
change management. The results show the existence of statistically and significant variance
between policy framework and change management. The significant F value of 5.401 df
(1,101) is <0.05 which indicates that the regression analysis conducted was appropriate for
the study.
Table 4.5: ANOVA for Policy Framework and Change Management
Model
Sum of
Squares df
Mean
Square F Sig.
1 Regression 5.894 1 5.894 5.401 .022b
Residual 110.223 101 1.091
Total 116.117 102
a. Dependent Variable: Change Management.
b. Predictors: (Constant), Policy Framework.
4.3.4.3 Coefficients for Policy Framework and Change Management
Table 4.6 below, shows the regression coefficients for policy framework and change
management. The results for P-value for policy framework was <0.05 which means there
exists a positive and statistically significant relationship between policy framework and
change management. The results also further explain that a unit increase of policy
framework would result in a 26% increase in change management whereas 74% could be
explained by other factors not considered in this study.
Table 4.6: Coefficients for Policy Framework and Change Management
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B
Std.
Error Beta
1 (Constant) 3.045 0.505 6.027 0.000
Policy Framework 0.260 0.112 0.225 2.324 0.022
a. Dependent Variable: Change Management
44
4.4 Competitive Forces and Change Management
In this section, analysis of data was done for the second objective of the study which aimed
at discovering whether competitive forces affect change management in telecommunication
companies in Tanzania. The results of the analyzed data are also presented in this section
using descriptive and inferential analysis.
4.4.1 Descriptive for Competitive Forces and Change Management.
Questions under this objective required respondents to indicate their level of agreement
using a Likert scale ranging 1- “strongly disagree” and 5- “strongly agree”. From Table 4.7
below, a significant variable that the majority of the respondents agreed upon was, Strong
competition has led to strong management of changes in the company (M=4.71, SD=0.57).
Changes in customer preferences have steered change in our company had a mean of 4.64
signifying some truth in the statement, our customers are driving force to change initiatives
in our company had a mean of 4.67 signifying some truth in the statement, customer
involvement has steered better change management decisions had a mean of 4.65 signifying
some truth in the statement, Our suppliers play a major role in change management
initiatives had a mean of 4.26 signifying some truth in the statement, Participation of
suppliers in change initiatives have led to a better relationship with the company had a mean
of 4.31 signifying some truth in the statement, Bargaining power of suppliers have highly
affected change management had a mean of 4.26 signifying some truth in the statement.
Threat of new entrants has led the company to rethink its change management had a mean
of 4.24 signifying some truth in the statement, The rate of change is determined by the rate
of new entrants in the market had a mean of 4.30 signifying some truth in the statement,
Entrance barriers have facilitated better management decisions of changes had a mean of
4.21 signifying some truth in the statement, Competition drives change management of the
company had a mean of 4.57 signifying some truth in the statement, The rate of change in
the company is influenced by industry competition had a mean of 4.61 signifying some
truth in the statement, Availability of substitutes in the industry have boosted the rate of
change processes in the company had a mean of 4.39 signifying some truth in the statement,
New offerings in the market are a result of improvements in managing changes in the
company had a mean of 4.45signifying some truth in the statement, Change initiatives have
led to better offerings in the market had a mean of 4.47 signifying some truth in the
statement.
45
Table 4.7: Descriptive for Competitive Forces and Change Management
N Mean
Std.
Deviation
Changes in customer preferences have steered change in
our company
103 4.64 0.64
Our customers are driving force to change initiatives in
our company
103 4.67 0.66
Customer involvement have steered better change
management decisions
103 4.65 0.68
Our suppliers play major role in change management
initiatives
103 4.26 0.95
Participation of suppliers in change initiatives have led to
better relationship with the company
103 4.31 0.91
Bargaining power of suppliers have highly affected
change management
103 4.26 1.01
Threat of new entrants has led the company to rethink its
change management
103 4.24 0.99
The rate of change is determined by the rate of new
entrants in the market
103 4.30 1.01
Entrance barriers have facilitated better management
decisions of changes
103 4.21 1.09
Competition drives change management of the company 103 4.57 0.79
Strong competition has led to strong management of
changes in the company
103 4.71 0.57
The rate of change in the company is influenced by
industry competition
103 4.61 0.63
Availability of substitutes in the industry have boosted
the rate of change processes in the company
103 4.39 0.73
New offerings in the market are a result of improvements
in managing changes in the company
103 4.45 0.71
Change initiatives have led to better offerings in the
market
103 4.47 0.70
46
4.4.2 Frequency Analysis for Competitive Forces and Change Management
Table 4.8 below shows that Changes in customer preferences have steered change in our
company as agreed by 96.1% respondents, 1% disagreed and 2.9% were neutral. Our
customers are the driving force to change initiatives in our company as agreed by 96% of
respondents, 2.1% disagree, and 1.9% were neutral. Customer involvement has steered
better change management decisions as agreed by 95.1% of respondents, 2% disagree, and
2.9% were neutral. Our suppliers play a major role in change management initiatives was
disagreed by 4.8% of respondents, 14.6% were neutral, and 80.6% agreed.
Participation of suppliers in change initiatives has led to a better relationship with the
company as agreed by 86.4% of respondents, 3.9% disagreed, and 9.7% were neutral. The
bargaining power of suppliers has highly affected change management as agreed by 82.5%
of respondents, 5.8% disagree, and 11.7% were neutral. The threat of new entrants has led
the company to rethink its change management as agreed by 81.6%, 7.7% disagree, and
10.7% were neutral. The rate of change is determined by the rate of new entrants in the
market was disagreed by 5.8% of respondents, 13.6% were neutral, and 80.6% agreed.
Entrance barriers have facilitated better management decisions of changes as agreed by
77.7% of respondents, 9.7% disagreed, and 12.6% were neutral. Competition drives
change management of the company as agreed by 90.3% of respondents, 2.9% disagree,
and 6.8% were neutral. Strong competition has led to strong management of changes in the
company as agreed by 94.2%, none disagreed, and 5.8% were neutral. The rate of change
in the company is influenced by industry competition was disagreed by 1% of respondents,
4.9% were neutral, and 94.1% agreed. Availability of substitutes in the industry has boosted
the rate of change processes in the company was disagreed by 1.9% of respondents, 8.7%
were neutral, and 89.4% agreed. New offerings in the market are a result of improvements
in managing changes in the company was disagreed by 1% of respondents, 6.8% were
neutral, and 92.2% agreed. Change initiatives have led to better offerings in the market
were disagreed by 1% of respondents, 5.8% were neutral, and 93.2% agreed.
47
Table 4.8: Frequency Analysis for Competitive Forces and Change Management
SD D M A SA TOTAL
% % % % % %
Changes in customer preferences have
steered change in our company 1 0.3 2.9 26.2 69.6 100
Our customers are driving force to change
initiatives in our company 1 1 1.9 22.3 73.8 100
Customer involvement have steered better
change management decisions 1 1 2.9 22.3 72.8 100
Our suppliers play major role in change
management initiatives 1.9 2.9 14.6 28.2 52.4 100
Participation of suppliers in change initiatives
have led to better relationship with the
company
2.9 1 9.7 35.0 51.4 100
Bargaining power of suppliers have highly
affected change management 3.9 1.9 11.7 29.1 53.4 100
Threat of new entrants has led the company
to rethink its change management 1.9 5.8 10.7 29.2 52.4 100
The rate of change is determined by the rate
of new entrants in the market 2.9 2.9 13.6 22.3 58.3 100
Entrance barriers have facilitated better
management decisions of changes 2.9 6.8 12.6 21.4 56.3 100
Competition drives change management of
the company 1 1.9 6.8 19.4 70.9 100
Strong competition has led to strong
management of changes in the company 5.8 17.5 76.7 100
The rate of change in the company is
influenced by industry competition 1 4.9 26.1 68.0 100
Availability of substitutes in the industry
have boosted the rate of change processes in
the company
1.9 8.7 37.9 51.5 100
New offerings in the market are a result of
improvements in managing changes in the
company
1 6.8 37.8 54.4 100
Change initiatives have led to better offerings
in the market 1 5.8 37.9 55.3 100
4.4.3 Correlation analysis for Competitive Forces and Change Management
In this section, correlation analysis between competitive forces and change management
48
was conducted to assess the significant factor of the competitive forces on change
management. From Table 4.9 below, the results show that competitive forces were
significant on change management with a positive correlation (r=0.569, p<0.05).
Table 4.9: Correlation analysis for Competitive Forces and Change Management
Competitive
forces
Change
Management
Competitive forces Pearson Correlation 1 .569**
Sig. (2-tailed) .000
Change Management Pearson Correlation .569** 1
Sig. (2-tailed) .000
**. Correlation is significant at the 0.01 level (2-tailed).
4.4.4 Regression Analysis for Competitive Forces and Change Management
4.4.4.1 Model Summary for Competitive Forces and Change Management
The summary of a regression model is presented in Table 4.10 below for competitive forces
and change management. It shows R square as 0.324 which means that 32.4% of the
variance in change management could be explained by competitive forces.
Table 4.10: Model Summary for Competitive Forces and Change Management
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .569a 0.324 0.317 0.74992
a. Predictors: (Constant), Competitive forces
4.4.4.2 ANOVA for Competitive Forces and Change Management
Table 4.11 below shows the analysis of variance (ANOVA) for competitive forces and
change management. The results show the existence of statistically and significant variance
between competitive forces and change management. The significant F value of 48.332 df
(1,101) is <0.05 which indicates that the regression analysis conducted was appropriate for
the study.
Table 4.11: ANOVA for Competitive Forces and Change Management
Model
Sum of
Squares df
Mean
Square F Sig.
1 Regression 27.181 1 27.181 48.332 .000b
Residual 56.800 101 0.562
Total 83.981 102
a. Dependent Variable: Change Management
b. Predictors: (Constant), Competitive forces
49
4.4.4.3 Coefficients for Competitive Forces and Change Management
Table 4.12 below, shows the regression coefficients for competitive forces and change
management. The results for P-value for competitive forces was <0.05 which means there
exists a positive and statistically significant relationship between competitive forces and
change management. The results also further explain that a unit increase of competitive
forces would result in a 90.4% increase in change management whereas 9.4% could be
explained by other factors not considered in this study.
Table 4.12: Coefficients for Competitive Forces and Change Management
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 0.112 0.617 0.182 0.856
Competitive forces 0.904 0.130 0.569 6.952 0.000
a. Dependent Variable: Change Management
4.5 Technological Advancement and Change Management
In this section, analysis of data was done for the third objective of the study which aimed
at discovering whether technological advancement affects change management in
telecommunication companies in Tanzania. The results of the analyzed data are also
presented in this section using descriptive and inferential analysis.
4.5.1 Descriptive for Technological Advancement and Change Management
Questions under this objective required respondents to indicate their level of agreement
using a Likert scale ranging 1- “strongly disagree” and 5- “strongly agree”. From Table
4.13 below, a significant variable that the majority of the respondents agreed upon was, our
company is up-to-date in line with technology changes (M=4.68, SD=0.61).
Through technology, our change management process has improved had a mean of 4.53
signifying some truth in the statement, technology has played a great role in the success of
our change management initiatives had a mean of 4.68 signifying some truth in the
statement, the success of our change management initiative is measured by our level of
technology had a mean of 4.53 signifying some truth in the statement, technology has
introduced changes in our company that makes us competitive had a mean of 4.64
signifying some truth in the statement, adaptation of a new technological system has
boosted our offerings in the market had a mean of 4.67 signifying some truth in the
50
statement, adaptation of advance technological system has boosted our offerings in the
market had a mean of 4.66 signifying some truth in the statement, new market opportunities
for our products have accelerated the change initiatives had a mean of 4.65 signifying some
truth in the statement.
Table 4.13: Descriptive for Technological Advancement and Change Management
N Mean
Std.
Deviation
Through automation, our change management process has
improved.
103 4.53 0.67
Technology has played a great role in the success of our
change management initiatives.
103 4.68 0.58
The success of our change management initiative is
measured by our level of technology.
103 4.53 0.76
Technology has introduced changes in our company that
makes us competitive.
103 4.64 0.61
Adaptation of a new technological system has boosted our
offerings in the market.
103 4.67 0.62
Adaptation of advance technological system has boosted our
offerings in the market
103 4.66 0.60
New market opportunities for our products have accelerated
the change initiatives.
103 4.65 0.55
Our company is up-to-date in line with technology changes 103 4.68 0.61
Technology has enhanced the communication of change
initiatives.
103 4.67 0.49
Our level of technology has accelerated the implementation
of change management initiatives.
103 4.63 0.61
New technologies influence most of our change initiatives. 103 4.68 0.56
Goal to provide better products and service elevated the rate
of the change process in the company
103 4.65 0.59
Customer shift to quality products influence the level of
change taking place in the company
103 4.65 0.61
The magnitude of globalization has influenced the change
management process in the company
103 4.52 0.76
Due to globalization, the rate at which changes happen in the
company varies.
103 4.36 0.86
51
Technology has enhanced the communication of change initiatives had a mean of 4.67
signifying some truth in the statement, our level of technology has accelerated the
implementation of change management initiatives had a mean of 4.63 signifying some truth
in the statement, new technologies influence most of our change initiatives had a mean of
4.68 signifying some truth in the statement, goal to provide better products and service
elevated the rate of the change process in the company had a mean of 4.65 signifying some
truth in the statement, customer shift to quality products influence the level of change taking
place in the company had a mean of 4.65 signifying some truth in the statement, the
magnitude of globalization has influenced the change management process in the company
had a mean of 4.52 signifying some truth in the statement, due to globalization, the rate at
which changes happen in the company varies had a mean of 4.36 signifying some truth in
the statement.
4.5.2 Frequency Analysis for Technological Advancement and Change Management
Table 4.14 below shows that through technology, our change management process has
improved as agreed by 95% of respondents, 1% disagreed, and 4% were neutral.
Technology has played a great role in the success of our change management initiatives as
agreed by 94.2% of respondents and 5.8% were neutral. The success of our change
management initiative is measured by our level of technology as agreed by 90.2% of
respondents, 2% disagree, and 7.8% were neutral. Technology has introduced changes in
our company that makes us competitive was disagreed by 1% of respondents, 3.9% were
neutral, and 95.1% agreed.
Adaptation of a new technological system has boosted our offerings in the market as agreed
by 94.1% of respondents, 1% disagreed, and 4.9% were neutral. Adaptation of advanced
technological systems has boosted our offerings in the market as agreed by 95.1% of
respondents, 3.9% disagree, and 1% were neutral. New market opportunities for our
products have accelerated the change initiatives as agreed by 96.1%, and 3.9% were neutral.
Our company is up-to-date in line with technology changes was disagreed by 1.9% of
respondents, 1.9% were neutral, and 96.2% agreed. Technology has enhanced the
communication of change initiatives as agreed by 99% of respondents, and 1% were
neutral.
52
Table 4.14: Frequency Analysis for Technological Advancement and Change
Management
SD D M A SA TOTAL
% % % % % %
Through automation, our change
management process has improved. 1 4 35.0 60.0 100
Technology has played a great role in
the success of our change management
initiatives.
5.8 20.4 73.8 100
The success of our change management
initiative is measured by our level of
technology.
1 1 7.8 24.2 66.0 100
Technology has introduced changes in
our company that makes us competitive. 1 3.9 25.2 69.9 100
Adaptation of a new technological
system has boosted our offerings in the
market.
1 4.9 20.4 73.7 100
Adaptation of advance technological
system has boosted our offerings in the
market
1 3.9 23.3 71.8 100
New market opportunities for our
products have accelerated the change
initiatives.
3.9 27.2 68.9 100
Our company is up-to-date in line with
technology changes 1.9 1.9 22.3 73.9 100
Technology has enhanced the
communication of change initiatives. 1 31.0 68.0 100
Our level of technology has accelerated
the implementation of change
management initiatives.
6.8 23.3 69.9 100
New technologies influence most of our
change initiatives. 4.9 22.3 72.8 100
Goal to provide better products and
service elevated the rate of the change
process in the company
5.8 23.3 70.9 100
Customer shift to quality products
influence the level of change taking
place in the company
6.8 21.4 71.8 100
The magnitude of globalization has
influenced the change management
process in the company
1 10.7 22.3 66.0 100
Due to globalization, the rate at which
changes happen in the company varies. 1 22.3 16.5 60.2 100
53
Our level of technology has accelerated the implementation of change management
initiatives as agreed by 93.2% of respondents, and 6.8% were neutral. New technologies
influence most of our change initiatives as agreed by 95.1%, and 4.9% were neutral. The
goal to provide better products and service elevated the rate of the change process in the
company was agreed by 94.2% of respondents, and 5.8% were neutral. Customer shift to
quality products influences the level of change taking place in the company was agreed by
93.2% of respondents, and 6.8% were neutral. The magnitude of globalization that has
influenced the change management process in the company was disagreed by 1%
respondents, 10.7% were neutral and 88.3% agreed. Due to globalization, the rate at which
changes happen in the company varies was disagreed by 1% respondents, 22.3% were
neutral and 76.7% agreed
4.5.3 Correlation analysis for Technological Advancement and Change Management
In this section, correlation analysis between technological advancement and change
management was conducted to assess the significance factor of technological advancement
on change management. From Table 4.15 below, the results show that technological
advancement was significant in change management with a positive correlation (r=0.615,
p<0.05).
Table 4.15: Correlation analysis for Technological Advancement and Change
Management
Technological
Advancement
Change
Management
Technological
Advancement
Pearson
Correlation
1 .615**
Sig. (2-tailed) 0.000
Change Management Pearson
Correlation
.615** 1
Sig. (2-tailed) 0.000
**. Correlation is significant at the 0.01 level (2-tailed).
4.5.4 Regression Analysis for Technological Advancement and Change Management
4.5.4.1 Model Summary for Technological Advancement and Change Management
The summary of a regression model is presented in Table 4.16 below for technological
advancement and change management. It shows R square as 0.378 which means that 37.8%
of the variance in change management could be explained by technological advancement.
54
Table 4.16: Model Summary for Technological Advancement and Change
Management
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .615a 0.378 0.372 0.80282
a. Predictors: (Constant), Technological Advancement
4.5.4.2 ANOVA for Technological Advancement and Change Management
Table 4.17 below shows the analysis of variance (ANOVA) for technological advancement
and change management. The results show the existence of statistically and significant
variance between technological advancement and change management. The significant F
value of 61.295 df (1,101) is <0.05 which indicates that the regression analysis conducted
was appropriate for the study.
Table 4.17: ANOVA for Technological Advancement and Change Management
Model
Sum of
Squares df
Mean
Square F Sig.
1 Regression 39.506 1 39.506 61.295 .000b
Residual 65.096 101 0.645
Total 104.602 102
a. Dependent Variable: Change Management
b. Predictors: (Constant), Technological Advancement
4.5.4.3 Coefficients for Technological Advancement and Change Management
Table 4.18 below, shows the regression coefficients for technological advancement and
change management. The results for P-value for technological advancement was <0.05
which means there exists a positive and statistically significant relationship between
technological advancement and change management. The results also further explain that
a unit increase of technological advancement would result in a 72.2% increase in change
management whereas 27.8% could be explained by other factors not considered in this
study.
55
Table 4.18: Coefficients for Technological Advancement and Change Management
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B
Std.
Error Beta
1 (Constant) 0.968 0.410 2.360 0.020
Technological
Advancement
0.722 0.092 0.615 7.829 0.000
a. Dependent Variable: Change Management
4.6 Chapter Summary
This chapter presented the results and findings drawn from the analyzed data collected.
Collected data were analyzed using descriptive and inferential techniques and were
presented in figures and tables. The first section presented results and findings for
demographic information and the rest of the sections presented results and findings for the
study objectives. The next chapter concentrates on the discussion, conclusion, and
recommendations of the study.
56
CHAPTER FIVE
5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter focuses on summary, discussion, conclusions, and recommendations on the
factors affecting change management in telecommunication Companies in Tanzania
derived from the results and findings.
5.2 Summary
The study’s general objective was to assess factors affecting change management in
telecommunication companies in Tanzania concentrating on three selected telecom
companies i.e., Vodacom Tanzania, Tigo Tanzania, and Airtel Tanzania. The study was
guided by 3 research questions: how does policy framework affect change management in
telecommunication companies in Tanzania, how does competitive forces affect change
management in telecommunication companies in Tanzania, and how, does technological
advancement affect change management in Tanzania. The research design adopted for this
study was descriptive. The study population included 150 employees holding managerial
positions in the selected telecom companies and the census method was used to draw a
sample size. The primary data was collected using questionnaires which were analyzed
using descriptive and inferential methods. The results and findings for this study were
presented in tables and figures.
The study evaluated the effect of policy framework on change management at Airtel, Tigo,
and Vodacom all based in Tanzania. It was revealed the existence of a positive and
significant correlation between policy framework and change management (r=0.225,
p<0.05). Regression analysis showed that 5.1% of the variance in change management
could be explained by a policy framework and a unit increase of policy framework would
result in a 26% increase in change management. The study further revealed that new laws
kept in place by the government have improved the change management process.
Improvements in legislation for the ICT industry have boosted the change management
process which led companies to make impeccable changes. Unanticipated regulations have
affected the change process. Government relationships with companies developed from
companies working closely with the government to bring about change in industry policy
have improved the change management process. Current organization policies are
influenced by both government laws and industry changes. The change process has led to
57
enhancements of the company’s policies which in turn steered better decision making.
Changes in privatization policies have impacted the company’s change process and boosted
changes in the company. Industry policies have a significant impact on the changes in
organizations hence regulation of these policies is very important in steering the change
management process. The current policy framework is sufficient to undertake changes in
companies.
The study assessed the effect of competitive forces on change management at Airtel, Tigo,
and Vodacom all based in Tanzania. It was revealed the existence of a positive and
significant correlation between competitive forces and change management (r=0.569,
p<0.05). Regression analysis showed that 32.4% of the variance in change management
could be explained by competitive forces and a unit increase of competitive forces would
result in a 90.4% increase in change management. The study further revealed that changes
in customer preferences have steered change in companies. Customers are the driving force
in initiating change as a result of their involvement which in turn steered better change
management decisions. Suppliers play a major role in change management initiatives due
to their bargaining power. Participation of suppliers in change initiatives has led to a better
relationship with companies. The threat of new entrants has led companies to rethink their
change management brought by the rate of new entrants. Entrance barriers have facilitated
better management decisions of changes. Competition drives change management whereby
strong competition has led to strong management of changes. The rate of change in the
company is influenced by industry competition. The availability of substitutes in the
industry has boosted the rate of change processes. New and better offerings in the market
are a result of improvements in managing changes in the company.
The study assessed the effect of technological advancement on change management at
Airtel, Tigo, and Vodacom all based in Tanzania. It was revealed the existence of a positive
and significant correlation between technological advancement and change management
(r=0.615, p<0.05). Regression analysis showed that 37.8% of the variance in change
management could be explained by technological advancement and a unit increase of
technological advancement would result in a 72.2% increase in change management. The
study further revealed that through technology, the change management process has
improved attributable to the great role it played. The success of change management
initiative is measured by the level of technology which makes companies competitive.
58
Adaptation of new and advanced technological systems has boosted offerings in the market.
New market opportunities for products offered by telecom companies have accelerated the
change initiatives. Companies are up-to-date in line with technology changes that have
enhanced the communication of change initiatives. The level of technology, as well as new
technology, has accelerated the implementation of change management initiatives. The
goal to provide better products and services elevated the rate of the change process.
Customer shift to quality products influences the level of change taking place. The
magnitude of globalization has influenced the change management process as well as the
rate at which changes happen.
5.3 Discussion
5.3.1 Policy Framework and Change Management
This study revealed that new laws kept in place by the government have improved change
management. This statement was argued by Jones (2013) who expressed that government
legislation tends to be important because, at a governance level, many firms don’t have
sufficient visibility into the impact of regulatory change on their organization because their
processes are fragmented and managed in silos. This study discovered that improvements
in legislation for the ICT industry have boosted the change management process. It was
agreed by World Trade Organization (2019), who argued that the growth and changes in
this sector have led stakeholders to re-look their approach to telecommunication regulation,
by legislating to cater to the inevitable changes, developing industry standards, and at the
micro-level organizations developing internal policies to deal with the changes. This study
exposed that unanticipated regulations affected the change process. This statement was
argued by Jaros (2010), who explained that reformation of policies is unavoidable resulting
in various, complex, and interrelated sets of requirements for compliance such as
substantial funds required for regulatory change management and restructuring.
This study revealed that government relationship with our company has improved change
management process. This statement was reasoned by United Nations Conference on Trade
and Development (2016) when they examined the experience of East Asia and Latin
America and observed that industrialization of East Asia economy was ahead of Latin
America economy despite Latin America being the first to implement industrialization
strategy. Key success factors that have been identified are industrial and public policies
designed and implemented by East Asia which stimulated rapid accumulation of capital as
59
well as adaptation of strategies like Export-Oriented Industrialization (EOI) by East Asia
which deviated industrial and economic performances of the region. This study uncovered
that companies made impeccable changes following government adjustments to legislation
and was agreed by Ndung’u (2019) who praised the power of regulatory reform which led
most countries to revitalized its ICT market, transforming it into digital economies by
following, adapting, or reinventing these approaches. This study revealed that current
organization policies are influenced by government laws. This result was agreed by
UNCTAD (2016) that stated that the rise of China as an economic powerhouse and Global
Value Chain (GVC) required countries to rethink their strategies and policies to
accommodate these changes and remain competitive.
This study discovered that the change process has led to enhancements of the company’s
policies. This result is in agreement with Kotter (1996) who stated that the success of the
change process is dependent on facilitative management and continuous support from the
top which commences from the very notion of the development of organization policies to
manage change. This study revealed that changes in privatization policies have impacted
the company change process. This result was argued by Pelletier (2020) who stated that
privatization is no longer contended to automatically create economic gains in developing
economies but a well-structured policy framework and a proper privatization process are
significant when countries want to attain a positive result. This includes the formation of
regulatory capacity, well-sequenced and functional reforms, and the enactment of
complementary policies. This study exposed that internal policies change with changes in
the industry. This statement was agreed by OECD (2017) who explained that organizations
are constantly reforming to become more effective, efficient, responsive, and open to policy
challenges. These reforms are encouraged by changes in the framework in which they
operate due to changes in technology, economic or social environment, political change,
etc. which in turn lead to a change in policies and practices they pursue.
This study revealed that the company works closely with the government to bring about
change in the industry policy. According to Salazar-Xirinachs, Nübler, and Kozul-Wright
(2014) who agrees by explaining that to improve the economic dynamism of many
countries after the 2007-2008 financial crisis, industrial policy gained a lot of attention
which forced governments to work closely with different companies to put it back in their
policy agenda. He kept on explaining that at any level of development companies and
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countries at large can’t proactively respond to current industrial changes without using
industry policy. This study uncovered that changes in internal policies have steered better
decision-making. This result was greed by Thaler and Sunstein (2008), who stated that by
employing minor changes to everyday infrastructure and architectures, governments, as
well as private institutions, can steer people in the direction of making better decisions with
the potential to fundamentally transform. This study discovered that industry policies have
a significant impact on the changes in an organization. Anelia (2019) agrees with these
results by stating that although industrial policies tend to the preview of management to
ensure implementation, it normally falls on the entire organization to drive the development
of policies on change management.
This study revealed that privatization policies have boosted changes in the company.
According to Kumssa (1996), he disagrees with the result by arguing that privatization isn’t
the only solution in improving the performances of SOEs. He recommends that reforming
SOEs instead of employing hasty privatization policies could bring better results. This
study revealed that the current policy framework is sufficient to undertake changes in a
company. World Trade Organization (2019) disagrees with this statement arguing that the
telecom industry is the most active sector facing numerous uncertainties which challenge
stakeholders to re-look their approach to telecommunication regulation, by legislating to
cater to the inevitable changes, developing industry standards, and at the micro-level
organizations developing internal policies to deal with the changes. This study revealed
that regulation of policies has steered the change management process. UNCTAD (2016)
argued the results by stating that government intervention in regulating functions in the
market through proper industrial policy framework and support of an efficient bureaucracy,
infrastructure, skilled workforce, etc. is very much needed for organizations in developing
countries to propagate in the competitive world.
5.3.2 Competitive forces and Change Management
This study showed that changes in customer preferences have steered change in our
company. Adekiye (2016), explained that as the world changes, the needs of customers
grow and change, generating new demand for new types of products and services. This
unlocks new opportunities for organizations to encounter those needs. This study
discovered that customers are the driving force to change initiatives in a company. This
result is agreed by Bruijl (2018) who argued that the power customers have on companies,
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influences competition within an industry by coercing companies to reduce their prices or
deliver products/services of a higher quality than is presently available. This study showed
that customer involvement has steered better change management decisions. Ogutu (2015)
explained that consumers are key drivers in the market due to their ability to pressure firms
into lowering prices, negotiating for products and services of higher quality, and playing
rivals against each other at the detriment of the firms' profitability.
This study revealed that suppliers play a major role in change management initiatives.
According to Scarborough (2013), the relationship between the organization and its
suppliers is determined by the individual organization’s approach to change and change
management as well as the rate of change being introduced; this will in turn determine the
success of service delivery. This study uncovered that the participation of suppliers in
change initiatives has led to a better relationship with the company. According to
Scarborough (2013), regularly involving suppliers in change management activities of an
organization is to avoid surprise changes that can be introduced by suppliers which may
have a considerable impact on the company’s services. By actively engaging organizations
in supplier’s activities is to ensure buying organizations have a voice in any changes. This
study revealed that the bargaining power of suppliers has highly affected change
management. Jeremiah et al. (2018) asserted that high supplier-bargaining power would be
when the number of suppliers is minimal in the market, or when the suppliers are not readily
available for immediate transactions. In such circumstances, companies are forced to seek
out a second option, which may not be the best choice for that entity, since costs may be
even higher and the products/services offered may not be the most ideal at that given time.
This study discovered that threat of new entrants has led the company to rethink its change
management. According to Markgraf (n.d.), he stated that how new player overcomes the
existing entry barriers can be key guidance to companies’ strategic reaction to these
changes by taking into account the strength of this new entrant when developing strategies
to retain customers and remain competitive. This study revealed that the rate of change is
determined by the rate of new entrants in the market. This result was emphasized by Porter
(2008) that, entry of a new player in the market brings a lot of dynamism to the industry.
Forcing players to scramble for the market share which is finite and also the important
resources available in that market. This study discovered that entrance barriers have
facilitated better management decisions of changes. Brujil (2018) agrees with the result by
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highlighting that it is prudent for the existing market players, as well as the relevant
authority bodies, to make rigid the barriers to entry in a market where the threat of new
entrants is very high for companies to make better decisions that avoid the possibility of
diminished profits and market share since the supply of products and services will most
likely increase and customer demand decrease.
This study indicated that competition drives change management of the company. Ishmael
(2014) argued that competition among other factors causes companies to radically change
how they do business as the global landscape changes by repeatedly building capacity that
improves the management of changes to create a competitive position for companies
against their rivals. This study showed that strong competition has led to strong
management of changes in the company. Goldsworthy and McFarland (2017) stated that
for it to be good or great change management, it all centers on the ability of a company to
respond to market changes rapidly and efficiently with fewer resources than its rivals. This
study uncovered that the rate of change in the company is influenced by industry
competition. Ferreira and Kittsteiner (2012) argued that competitive pressure aids
employees to direct their efforts and execute changes to the company structure that will
improve profitability through cost reduction and hence improve the firm’s capacity to
compete
This study showed that the availability of substitutes in the industry has boosted the rate of
change processes in the company. This result is explained by Luenendonk (2019) that,
substitutes are not recognized immediately because they often come from outside the
industry in which the company operates. The danger becomes more intense when a
company focuses more on managing its direct competitors and may miss the forthcoming
threat of a substitute. Henceforth, companies are required to pay special attention to
identifying the threats of substitutes and develop change strategies that counter them in the
long run. This study indicated that new offerings in the market are a result of improvements
in managing changes in the company. According to Goldsworthy and McFarland (2017),
the ability to repeatedly build capacity to adequately involve employees to gain their
commitment and ensure timely and profitable delivery is the degree to which companies
improve at changing. When such attributes are well leveraged by companies, it will create
a better position for a company vis-a-vis rivals in the competition to respond to market
needs and changes rapidly and efficiently. This study discovered that change initiatives
63
have led to better offerings in the market. Ongache (2015) argued that as the needs and
desires of consumers are too complex to be fully satisfied by a single service or sellers with
similar capabilities, companies should therefore study the needs and actions of purchasers
carefully to understand what they feel is worthwhile and what they are prepared to pay for.
After a thorough customer analysis, the firm can then integrate the buyer-desired attributes
into its marketing model, to clearly distinguish itself from other major competitors.
5.3.3 Technological Advancement and Change Management
This study indicated that through automation, the change management process has
improved. This result was agreed by Stumpf (2018) who argued that successful automation
is closely correlated to the organization’s capability to comprehend, design, and manage
change. He further explains that complex organizational change is essential to successfully
implement and manage the automated system by, understanding people and all the areas in
the organization being affected indirectly and directly. This study showed that technology
has played a great role in the success of change management initiatives. According to Roe
(2019), the role technology has in initiating change in the organization can’t be overrated.
Silos of information, people, content, and processes are universal across most businesses.
He claims that in the digital age, companies require better resource connectivity to deliver
improved focus, clarity, and agility to quickly respond to the changes brought by
digitization. This study showed that the success of change management initiatives is
measured by the level of technology. Laserfiche (n.d.) disagrees with this statement by
stating that technology tends to change faster than organization could change, organizations
changes slowly while technology changes exponentially. The true success of change
management initiatives comes from how companies evolve amidst change and use
technology to foster change initiatives. Pfeifer, Schmitt, and Voigt (2005) argue that
verifying the credibility of vision and strategy through the use of measurable results is the
main goal for gathering first successes. Management will require these first successes to
plan for the further change process and be able to partially justify the short‐ term costs
incurred through change.
This study revealed that technology has introduced changes in the company that makes
companies competitive. Laserfiche (n.d.) argued that, when technology itself introduces a
change in organization or industry, will pose constant threats to the organization, and
embracing these technological changes ahead of the competition requires companies to find
64
ways to advance their operations to stay competitive. This study uncovered that adaptation
of a new and advanced technological system has boosted our offerings in the market. This
result was agreed by Schwab (2016) who explained that developments in technology offer
companies with the prospect to use technology to centralize purchasing and logistics to take
advantage of cost savings, also decentralizing responses to customer needs which has
provided the opportunity for firms to tailor marketing decisions to fit local markets.
Companies have also taken advantage of advances in communications technology to
integrate their computer systems with their customers and suppliers. This study showed
that new market opportunities for products have accelerated the change initiatives. Beck
(n.d.) argued that to thrive in the global marketplace by exploiting opportunities, it is
essential for companies to quickly implement changes such as driving out needless
administrative and development steps to reduce product development times and costs. He
further explains that the evolution of global standards in business processes and quality has
also accelerated the requirement for companies’ usage of technology to execute the needed
changes to encounter new requirements.
This study indicated that the company is up-to-date in line with technological changes.
Keeble (2013), agrees with the results by explaining that when technological advancements
increase, newer innovations of products emerge, leading to a replacement or discontinuance
of the older technologies. The discontinuation of products is a big loss for companies that
have placed heavy investments into these products. For this reason, obsolescence
management is necessary to avoid any setbacks from technological changes. This study
showed that technology has enhanced the communication of change initiatives. According
to Bressler (2019), in the process of making sure new automation system results are highly
supported, executed effectively, and used by employees, change management best methods
should be followed and customized to the inimitable challenges automation present. This
can be attained by closely working with key stakeholders in the company, communicate
the main challenges, and concentrating on the benefits that will be brought by new
solutions. This study uncovered that level of technology has accelerated the implementation
of change management initiatives. The result was argued by Laserfiche (n.d.), that to
efficiently implement changes in an organization, technology should be used to support the
process rather than depending on it to make the change.
65
This study showed that new technologies influence most change initiatives. Laserfiche
(n.d.) argued that the problem with using technology to drive change in organizations is
that, technology can change quicker than people i.e., as technology develops exponentially,
organization absorption to change becomes very slow. This study revealed that goal to
provide better products and service elevated the rate of the change process in the company.
As agreed by Santos (2003), he highlighted that provision of quality products and services
is highly correlated with the company’s competitive advantage. For firms to increase their
performances, profits, customer loyalty, and customer satisfaction, firms need to measure
the quality of their products and services to recognize problems and manage the delivery
of quality products and services which in turn becomes a basis for employee rewards. This
study showed that customer shift to quality products influences the level of technological
change taking place in the company. Gachagua (2004) explains that the need for
technological advancements stems from the pressure from consumers on service providers,
and manufacturers, to provide products and services that have a high quality, are simple to
use, are cheap and affordable, and have a long lifespan.
This study showed that the magnitude of globalization has influenced the change
management process in the company. Lebesmuehlbacher (2016) states, globalization, as a
result of technological advancements, influences several changes in the running and
administration of the industry players in the telecommunications sector by helping
companies increase their profitability since more customers use the service to reach out to
their counterparts overseas, hence more revenue for the firm. The company also gains
recognition in other countries, hence higher opportunities for business expansion and
market penetration overseas. This study showed that due to globalization, the rate at which
changes happen in the company varies. Kiplimo (2004) explains that globalization compels
companies to make various adjustments to accommodate changes brought by globalization.
For instance, different countries have different sets of regulatory and administrative rules
which govern the way businesses are run. To operate in different countries, companies have
to comply with these rules, as need be, to be legally compliant and not face legal suits for
non-compliance.
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5.4 Conclusions
5.4.1 Policy Framework and Change Management
The study concludes that new laws kept in place by the government have improved the
change management process. Improvements in legislation for the ICT industry have
boosted the change management process whereby companies made impeccable changes
following government adjustments to legislation. Unanticipated regulations affected the
change process of companies. Government relationship with the company has improved
the change management process. Furthermore, the change process has led to enhancements
of the company’s policies which in turn steered better decision making. Current
organization policies are influenced by government laws. Internal policies change with
changes in the industry whereby companies work closely with the government to bring
about change in the industry policy. Industry policies have a significant impact on the
changes in an organization. Privatization policies have boosted changes in the company.
Changes in privatization policies have impacted the company change process. The current
policy framework is sufficient to undertake changes in a company. Regulation of policies
has steered the change management process.
5.4.2 Competitive forces and Change Management
This study concludes that changes in customer preferences have steered change in the
company. Customers are the driving force to change initiatives in a company and their
involvement has steered better change management decisions. Suppliers play a major role
in change management initiatives and through their participation in change, initiatives have
led to a better relationship with the company. The bargaining power of suppliers has highly
affected change management. The threat of new entrants has led the company to rethink its
change management as the rate of change is determined by the rate of new entrants in the
market. Entrance barriers have facilitated better management decisions of changes.
Competition drives change management of the company whereby strong competition has
led to strong management of changes in the company. The rate of change in the company
is influenced by industry competition. The availability of substitutes in the industry has
boosted the rate of change processes in the company. New offerings in the market are a
result of improvements in managing changes in the company. Change initiatives have led
to better offerings in the market.
67
5.4.3 Technological Advancement and Change Management
This study concludes that through automation, the change management process has
improved. Technology has played a great role in the success of change management
initiatives whereby the success of change management initiatives is measured by the level
of technology. Technology has introduced changes in the company that makes companies
competitive. Adaptation of new and advanced technological systems has boosted offerings
in the market through which new market opportunities for products have accelerated these
change initiatives. The company is up-to-date in line with technology changes with the help
of which has enhanced the communication of change initiatives. The level of technology
has accelerated the implementation of change management initiatives. New technologies
influence most change initiatives. The goal to provide better products and services elevated
the rate of the change process in the company. Customer shift to quality products influences
the level of technological change taking place in the company. The magnitude of
globalization has influenced the change management process in the company and due to
globalization, the rate at which changes happen in the company varies
5.5 Recommendations
5.5.1 Recommendations for Improvements
5.5.1.1 Policy Framework and Change Management
This study recommends the 3 companies i.e., Airtel, Tigo, and Vodacom Tanzania to work
closely with the government to bring about change in the industry policy. This will facilitate
them to proactively respond to industrial changes they will face as well as strengthening
the industry through industry policy that both parties agree on.
5.5.1.2 Competitive forces and Change Management
This study recommends the 3 companies i.e., Airtel, Tigo, and Vodacom Tanzania to use
the competition they are facing as a ground for solidifying their change management. This
can only be achieved by improving their ability to respond quickly and effectively to market
changes to remain competitive.
5.5.1.3 Technological Advancement and Change Management
This study recommends the 3 companies i.e., Airtel, Tigo, and Vodacom Tanzania to use
technology to support the implementation of change initiatives rather than using it to make
a change. This is very important for companies because technology changes faster than an
organization could change.
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5.5.2 Recommendations for Further Studies
This study focused on assessing factors affecting change management in
telecommunication companies in Tanzania. It was restricted to investigating the effect of
policy framework, competitive factors, and technological advancement on change
management of telecommunication companies in Tanzania, and it was also limited to 3
selected telecom companies i.e., Airtel, Tigo, and Vodacom. Therefore, further studies
should be conducted on other effects of change management in the same companies as well
as other industries in Tanzania.
69
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2. APPENDICES
3. APPENDIX I: INTRODUCTION LETTER
Paulina Costaph Natai,
United States International University,
P.O. BOX 14634, 00800,
Nairobi, Kenya.
13th November, 2020.
Dear Respondent,
RE: FACTORS AFFECTING CHANGE MANAGEMENT IN
TELECOMMUNICATION COMPANIES IN TANZANIA: A CASE OF
SELECTED TELECOMMUNICATION COMPANIES.
I am a graduate student at United States International University, carrying out a research
on factors affecting change management in telecommunication companies in Tanzania: A
case of selected telecommunication companies. This is to partially fulfill the requirements
for degree of Masters in Business Administration (MBA).
This is a random selection for participation in the study. It will take an approximation of
less than ten (10) minutes to respond to a questionnaire. Please try and be objective as
possible. Your contribution is vital in accomplishment of this study and your participation
is highly appreciated. The information provided in this exercise is confidential and will
mainly be used for academic purposes.
Your name will not appear anywhere in this research. Kindly spare time and fill in the
questionnaire attached.
Thank you.
Yours faithfully,
Paulina Costaph Natai.
Mobile Number: 0674927799 Email: [email protected]
80
4. APPENDIX II: QUESTIONNAIRE
This questionnaire seeks to assess the factors affecting change management in
telecommunication companies in Tanzania: A case of selected telecommunication
companies. All the information you give will be treated with confidentiality and used for
academic purposes only.
SECTION A: DEMOGRAPHIC INFORMATION
Please tick appropriately
1. Kindly indicate your gender
Male
Female
2. Kindly indicate your age
18-25 years
26-33 years
34-41 years
42-49 years
Above 50 years
3. What is your highest education level?
Secondary level
Certificate or Diploma
Degree
Masters
Doctorate
4. Kindly indicate the telecommunication company you working for:
Airtel Tanzania
Tigo Tanzania
Vodacom Tanzania
5. How many years have you worked for the company?
Below 1 year
1-5 years
6-10 years
Above 10 years
81
SECTION B: POLICY FRAMEWORK
Using a scale of 1-5 tick the appropriate answer from the table below: 1- Strongly disagree
2-Disagree 3-Moderate 4-Agree 5- strongly agree. Please show your level of agreement to
indicate the extent to which the following statements have been applying in your company
by ticking your response corresponding to the number in the scale given above in the box
against statement.
1 2 3 4 5
1 New laws kept in place by the government have improved the
change management process.
2 Improvements in legislations for the ICT industry has boosted the
change management process
3 Unanticipated regulations affected the change process of your
company
4 Government relationship with our company has improved change
management process
5 Our company made impeccable changes following government
adjustments to legislation.
6 The current organization policies are influenced by government
laws
7 The change process has led to enhancements of the company’s
policies
8 Changes in privatization policies have impacted our company
change process
9 Our internal policies change with changes in the industry
10 Our company works closely with the government to bring about
change in the industry policy.
11 Changes in our internal policies have steered better decision making
12 Industry policies have a significant impact on the changes in our
organization
13 Privatization policies have boosted changes in the company
14 Current policy framework is sufficient to undertake changes in our
company.
15 Regulation of policies has steered the change management process
82
SECTION C: COMPETITIVE FORCES
Using a scale of 1-5 tick the appropriate answer from the table below: 1- Strongly disagree
2-Disagree 3-Moderate 4-Agree 5- strongly agree. Please show your level of agreement to
indicate the extent to which the following statements have been applying in your company
by ticking your response corresponding to the number in the scale given above in the box
against statement.
1 2 3 4 5
1 Changes in customer preferences have steered change in our company.
2 Our customers are the driving force to change initiatives in our
company.
3 Customer involvement has steered better change management
decisions.
4 Our suppliers play a major role in change management initiatives.
5 Participation of suppliers in change initiatives has led to a better
relationship with the company.
6 The bargaining power of suppliers have highly affected change
management
7 The threat of new entrants has led the company to rethink its change
management.
8 The rate of change is determined by the rate of new entrants in the
market.
9 Entrance barriers have facilitated better management decisions of
changes.
10 Competition drives change management of the company.
11 Strong competition has led to strong management of changes in the
company
12 The rate of change in the company is influenced by industry
competition.
13 Available substitutes in the industry have boosted the rate of change
processes in the company.
14 New offerings in the market are a result of improvements in managing
changes in the company
15 Change initiatives have led to better offerings in the market
83
SECTION D: TECHNOLOGICAL ADVANCEMENTS
Using a scale of 1-5 tick the appropriate answer from the table below, alternatives are as
follows; 1- Strongly disagree 2-Disagree 3-Moderate 4-Agree 5- strongly agree. Please
show your level of agreement to indicate the extent to which the following statements have
been applying in your company by ticking your response corresponding to the number in
the scale given above in the box against statement.
1 2 3 4 5
1 Through automation, our change management process has improved.
2 Technology has played a great role in the success of our change
management initiatives.
3 The success of our change management initiative is measured by our
level of technology.
4 Technology has introduced changes in our company that make us
competitive.
5 Adaptation of a new technological system has boosted our offerings
in the market.
6 Adaptation of advanced technological system has boosted our
offerings in the market
7 New market opportunities for our products have accelerated the
change initiatives.
8 Our company is up-to-date in line with technological changes.
9 Technology has enhanced the communication of change initiatives.
10 Our level of technology has accelerated the implementation of change
management initiatives.
11 New technologies influence most of our change initiatives.
12 The goal to provide better products and services elevated the rate of
the change process in the company.
13 Customer shift to quality products influences the level of change
taking place in the company.
14 The magnitude of globalization has influenced the change
management process in the company
15 Due to globalization, the rate at which changes happen in the company
varies.
84
SECTION E: CHANGE MANAGEMENT
Using a scale of 1-5 tick the appropriate answer from the table below, alternatives are as
follows; 1- Strongly disagree 2-Disagree 3-Moderate 4-Agree 5- strongly agree. Please
show your level of agreement to indicate the extent to which the following statements
have been applying in your company by ticking your response corresponding to the
number in the scale given above in the box against statement.
1 2 3 4 5
1 I am aware of changes that happened in the company
2 The company has experienced changes recently
3 Our company used change management structures during
the process
4 I was involved in the change initiative
5 The change process impacted my work
6 The change was well communicated
7 I was involved in the change process
8 The changes have enhanced my work environment
9 I am happy with the current change management structure
10 The changes have led to better offerings in the market
85
5. APPENDIX III: INFORMED CONSENT FORM
Name of Study : Factors affecting change management in telecommunication
industry in Tanzania: A case of selected telecommunication companies.
Name of Researcher : Paulina Costaph Natai
This research aims at establishing factors affecting change management in
telecommunication industry in Tanzania: A case of selected telecommunication companies
by concentrating in three factors i.e., policy framework, competitive forces and
technological advancement.
a. I have received a copy for participation, read it carefully and understood the
information it contains.
b. I was given sufficient time to consider my decision to participate and come to an
agreement to participate
c. I understand that my involvement is voluntary and I am free to withdraw myself
from participating without being questioned.
d. I understand that all the personal details like name and employer address will be
treated with high confidentiality and be accessed only by the researcher.
e. The explanations about the research are well understood and I was able to ask
questions and being answered to my satisfactory.
f. I understand that the research is approved by the Institutional Review Board (IRB)
and National Commission for Science, Technology and Innovation (NACOSTI).
Name of the participant: ……………………. Signature: ……………… Date:
…….
Name of the researcher: Paulina C. Natai Signature: ……………… Date:
…….
86
6. APPENDIX IV: DEBRIEFING FORM
Dear Participant;
In this study, you were asked to participate by answering the questions in the questionnaire.
You were told that the purpose of the study is to establish the factors affecting change
management in telecommunication industry in Tanzania: A case of selected
telecommunication companies.
You are reminded that your original consent document included the following information:
your right to withdraw from the study at any time without any implications to me.
If you have any concerns about your participation or the information you provided in light
of this disclosure, please discuss this with me. I will be happy to provide all the answers
on questions you have about this study.
If your concerns are such that you would like to have your data withdrawn, and the data is
identifiable, I will do so.
If you have questions about your participation in the study, please contact me on email
[email protected] or my project supervisor [email protected]
If you have questions about your rights as a research participant, you may contact the
USIU-A Institutional Review Board Office telephone 254730116127,
Please again accept my appreciation for your participation in this study.
Name: Paulina C. Natai Sign: ………………………………
87
7. APPENDIX V: IRB LETTER
88
1. APPENDIX VI: NACOSTI PERMIT