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Effect of Dynamic Capabilities on Competitive Advantage of Manufacturing Firms in Nairobi, Kenya

Received: 23 September 2020     Accepted: 13 October 2020     Published: 10 March 2021
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Abstract

Previous studies on manufacturing firms particularly in less developed countries have revealed that a third of these firms have failed to become operational as well as additional failures or closures of firms in previous years due to lack of sensing, seizing and reconfiguring of firm’s capabilities leading to competitive advantage. There are no empirical studies in Kenya that show the effect of dynamic capabilities and competitive advantage of manufacturing firms which this study strives to achieve. The main objective of the study was to determine the effect of dynamic capabilities on competitive advantage of manufacturing firms in Kenya. The specific objectives of the study were to assess the effect of sensing, seizing and reconfiguration capabilities on competitive advantage of manufacturing firms in Nairobi, Kenya. The study adopted explanatory research design and data was collected using survey approach on a target population of 762 manufacturing firms registered under Kenya Association of Manufacturers. A sample size of 321 firms was selected based on Yamane formula of determination in selecting respondents to be served with the questionnaires. Pearson correlation was used to test the linear. relationship of variables while multiple regression model was used to analyze data in order to test the hypothesis for the study Descriptive and inferential statistics were used in data analysis and the study findings revealed that there was a positive and significant effect of sensing capabilities and competitive advantage (β=.392, p=.000); seizing capabilities and competitive advantage (β=.194, p=.000); reconfiguration capabilities and competitive advantage (β =.174, p=.001) with all p-value being less than .05. The study recommends that managers and industry practitioners should put more emphasis on, and appreciate the role of the leader in the deployment of dynamic capabilities by sensing, seizing, reconfiguring their capabilities in order to achieve competitive advantage in the ever changing contemporary operating environment.

Published in American Journal of Management Science and Engineering (Volume 6, Issue 1)
DOI 10.11648/j.ajmse.20210601.12
Page(s) 11-17
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Dynamic Capabilities, Sensing Capabilities, Seizing Capabilities, Reconfiguration Capabilities, Competitive Advantage

References
[1] Burden, R., and Proctor, T. (2000). Creating a sustainable competitive advantage through training. Team Performance Management: An International Journal, 6 (5/6), 90-97.
[2] Barney, J. B., and Clark, D. N. (2007). Resource-based theory: Creating and sustaining competitive advantage. Oxford: University Press. Barney, J. B., and Hesterly, W. S. (2010). Strategic management and competitive advantage concepts. Boston: Pearson Education International.
[3] Li, D.-y., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research, 67 (1), 2793-2799.
[4] Barney, J. B., and William Hesterly. (2014). Strategic Management and Competitive Advantage, (5th edition). Upper Saddle River, NJ: Prentice Hall.
[5] Dash, A. K., and Das, B. (2010). The balanced scorecard and its application as a strategic decision-making tool. International Review of Business Research Papers, 6 (4), 457 466.
[6] Barney, J. B., (1991). "Firm Resources and Sustained Competitive Advantage." Journal of Management, Vol. 17, No. 1, 1991, pp. 99–120.
[7] Ismail, A., Rose, R., Uli, J., and Abdullah, H. (2012). The relationship between organizational resources, capabilities, systems and competitive advantage. Asian Academy of Management Journal, 17 (1), 151–173.
[8] Ngila, F. M. and Muturi, W. (2016). Effect of organizational capabilities on sustainable competitive advantage in retail supermarkets: a case of supermarkets in Thika town sub-county, Kenya. International Journal of Social Science and information technology, 2 (9), 961-977.
[9] Hana, U. (2013). Competitive advantage achievement through innovation and knowledge. Journal of Competitiveness, 5 (1), 82-96.
[10] Ogunkoya, O., Hassan, B., and Shobayo, P. B. (2014). Dynamic capabilities and competitive advantage: An analysis of the Nigerian banking sector. Journal of Accounting and Management, 4 (2), 24-36.
[11] Koirala, G. P., & Koshal, R. K. (2000). Productivity and technology in Nepal: An analysis of foreign and domestic firms. Journal of Asian Economics, 10 (4), 605-618.
[12] KPMG (2014). Kenya-Business Environment Survey. Available at kpmg.com/Africa.
[13] KAM (2019), Manufacturing Priority Agenda. Closing the manufacturing gap through the Big 4 Agenda for shared prosperity report.
[14] GOK, (2014). Economic Survey Results, Kenya National Bureau of Statistics, Nairobi, Government Printers.
[15] KAM (2018). Manufacturing Priority Agenda. Sparking Kenya’s Industrial Transformation for job Creation.
[16] Kimberlinm C. L., & Winetrstein, A. G. (2008). Validity and reliability of measurement instruments used in research. American Journal of Health-System harmacy, 65 (23).
[17] Idinga, G. E. (2015). The Moderating Effect of Program Awareness on the Relationship Between Planned Behaviour and Students Intentions to Enroll in Postgraduate Studies in Tanzania. Moi University PhD Thesis.
[18] Tabachnick, B. G., & Fidell, L. S. (2013). Using Multivariate Statistics (6th Edition). Upper Saddle River, NJ: Pearson Education.
[19] Osborne, J., & Waters, E. (2002). Four assumptions of multiple regression that researchers should always test. Practical assessment, research & evaluation, 8 (2), 1-9.
[20] Field, A. (2009). Discovering statistics using SPSS. (3rd ed). British Library Cataloguing in Publication data. Sage publications. ISBN 978-1-84787-907-3.
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[22] Teece, D. J. (2016). Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm. European Economic Review, 86, 202-216.
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  • APA Style

    Rono Chemely Leah, Korir Kirwa Michael, Komen Kimosop Joyce. (2021). Effect of Dynamic Capabilities on Competitive Advantage of Manufacturing Firms in Nairobi, Kenya. American Journal of Management Science and Engineering, 6(1), 11-17. https://doi.org/10.11648/j.ajmse.20210601.12

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    ACS Style

    Rono Chemely Leah; Korir Kirwa Michael; Komen Kimosop Joyce. Effect of Dynamic Capabilities on Competitive Advantage of Manufacturing Firms in Nairobi, Kenya. Am. J. Manag. Sci. Eng. 2021, 6(1), 11-17. doi: 10.11648/j.ajmse.20210601.12

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    AMA Style

    Rono Chemely Leah, Korir Kirwa Michael, Komen Kimosop Joyce. Effect of Dynamic Capabilities on Competitive Advantage of Manufacturing Firms in Nairobi, Kenya. Am J Manag Sci Eng. 2021;6(1):11-17. doi: 10.11648/j.ajmse.20210601.12

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  • @article{10.11648/j.ajmse.20210601.12,
      author = {Rono Chemely Leah and Korir Kirwa Michael and Komen Kimosop Joyce},
      title = {Effect of Dynamic Capabilities on Competitive Advantage of Manufacturing Firms in Nairobi, Kenya},
      journal = {American Journal of Management Science and Engineering},
      volume = {6},
      number = {1},
      pages = {11-17},
      doi = {10.11648/j.ajmse.20210601.12},
      url = {https://doi.org/10.11648/j.ajmse.20210601.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmse.20210601.12},
      abstract = {Previous studies on manufacturing firms particularly in less developed countries have revealed that a third of these firms have failed to become operational as well as additional failures or closures of firms in previous years due to lack of sensing, seizing and reconfiguring of firm’s capabilities leading to competitive advantage. There are no empirical studies in Kenya that show the effect of dynamic capabilities and competitive advantage of manufacturing firms which this study strives to achieve. The main objective of the study was to determine the effect of dynamic capabilities on competitive advantage of manufacturing firms in Kenya. The specific objectives of the study were to assess the effect of sensing, seizing and reconfiguration capabilities on competitive advantage of manufacturing firms in Nairobi, Kenya. The study adopted explanatory research design and data was collected using survey approach on a target population of 762 manufacturing firms registered under Kenya Association of Manufacturers. A sample size of 321 firms was selected based on Yamane formula of determination in selecting respondents to be served with the questionnaires. Pearson correlation was used to test the linear. relationship of variables while multiple regression model was used to analyze data in order to test the hypothesis for the study Descriptive and inferential statistics were used in data analysis and the study findings revealed that there was a positive and significant effect of sensing capabilities and competitive advantage (β=.392, p=.000); seizing capabilities and competitive advantage (β=.194, p=.000); reconfiguration capabilities and competitive advantage (β =.174, p=.001) with all p-value being less than .05. The study recommends that managers and industry practitioners should put more emphasis on, and appreciate the role of the leader in the deployment of dynamic capabilities by sensing, seizing, reconfiguring their capabilities in order to achieve competitive advantage in the ever changing contemporary operating environment.},
     year = {2021}
    }
    

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  • TY  - JOUR
    T1  - Effect of Dynamic Capabilities on Competitive Advantage of Manufacturing Firms in Nairobi, Kenya
    AU  - Rono Chemely Leah
    AU  - Korir Kirwa Michael
    AU  - Komen Kimosop Joyce
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    DO  - 10.11648/j.ajmse.20210601.12
    T2  - American Journal of Management Science and Engineering
    JF  - American Journal of Management Science and Engineering
    JO  - American Journal of Management Science and Engineering
    SP  - 11
    EP  - 17
    PB  - Science Publishing Group
    SN  - 2575-1379
    UR  - https://doi.org/10.11648/j.ajmse.20210601.12
    AB  - Previous studies on manufacturing firms particularly in less developed countries have revealed that a third of these firms have failed to become operational as well as additional failures or closures of firms in previous years due to lack of sensing, seizing and reconfiguring of firm’s capabilities leading to competitive advantage. There are no empirical studies in Kenya that show the effect of dynamic capabilities and competitive advantage of manufacturing firms which this study strives to achieve. The main objective of the study was to determine the effect of dynamic capabilities on competitive advantage of manufacturing firms in Kenya. The specific objectives of the study were to assess the effect of sensing, seizing and reconfiguration capabilities on competitive advantage of manufacturing firms in Nairobi, Kenya. The study adopted explanatory research design and data was collected using survey approach on a target population of 762 manufacturing firms registered under Kenya Association of Manufacturers. A sample size of 321 firms was selected based on Yamane formula of determination in selecting respondents to be served with the questionnaires. Pearson correlation was used to test the linear. relationship of variables while multiple regression model was used to analyze data in order to test the hypothesis for the study Descriptive and inferential statistics were used in data analysis and the study findings revealed that there was a positive and significant effect of sensing capabilities and competitive advantage (β=.392, p=.000); seizing capabilities and competitive advantage (β=.194, p=.000); reconfiguration capabilities and competitive advantage (β =.174, p=.001) with all p-value being less than .05. The study recommends that managers and industry practitioners should put more emphasis on, and appreciate the role of the leader in the deployment of dynamic capabilities by sensing, seizing, reconfiguring their capabilities in order to achieve competitive advantage in the ever changing contemporary operating environment.
    VL  - 6
    IS  - 1
    ER  - 

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Author Information
  • Department of Management Science, School of Business & Economics, Moi University, Eldoret, Kenya

  • Department of Management Science, School of Business & Economics, Moi University, Eldoret, Kenya

  • Department of Management Science, School of Business & Economics, Moi University, Eldoret, Kenya

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