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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

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Page 1: FACTORS AFFECTING CHANGE MANAGEMENT IN …

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

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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

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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

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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

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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.

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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

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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

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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

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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.

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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).

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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

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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

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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

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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

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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.

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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

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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.

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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

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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-

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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

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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

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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.

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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.

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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

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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.

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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.

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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

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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

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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

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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

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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.

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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

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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.

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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

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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.

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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

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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.

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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

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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

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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

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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

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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.

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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

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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.

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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.

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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.

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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

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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.

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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

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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

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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

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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.

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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.

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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.

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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]

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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

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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

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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

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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.

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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

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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:

…….

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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,

[email protected].

Please again accept my appreciation for your participation in this study.

Name: Paulina C. Natai Sign: ………………………………

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7. APPENDIX V: IRB LETTER

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1. APPENDIX VI: NACOSTI PERMIT