Mohamed Khalif, Dr. Jared Deya, Dr. Shalle Noor


The performance of commercial state corporations is indicated by such factors as their contributions to social welfare, job creation, general economic empowerment and improvement of lives of the poor. However, despite the interest in the sector and the subsidies that have flowed into some of the mission-oriented commercial state corporations, it seems that most commercial state corporations struggle with the challenge of remaining viable over the long-term. Some of this challenge is on how to manage customers and provide quality services. Therefore, dynamic capabilities could offer a solution to this dilemma through providing a customer management system which incorporates all functional areas of the organization. Thus, the general objective of the study was to determine effect of sensing capability on performance of commercial state corporations in Kenya and to establish the effect of operational capabilities on performance of commercial state corporations in Kenya. This study was guided by Dynamic Capability theory. Cross-sectional research designs was used in this study. The target population for this study comprised 216 HODs drawn from 27 commercial state corporations within Kenya. Stratified and simple random sampling was used in this study to select 111 HODs. Primary data was obtained from the employees using questionnaire. This study used questionnaires to collect data relevant to the study. Quantitative data collected was analysed using descriptive statistical techniques which were frequencies, mean, standard deviation. The researcher also used inferential statistics Pearson Correlation to show the relationships that existed between the variables and multiple regressions and correlation analysis, the significance of each independent variable was tested at a confidence level of 95%. This study was invaluable to not only to the commercial state corporation managers but also other managers in other organizations and industries. The study found that sensing capability positively and significantly relates with performance of commercial state corporations in Kenya; and strategic fit is a significant moderating variable on the relationship between sensing capability and performance of commercial State Corporation in Kenya. The study thus recommends commercial state corporations to improve on their sensing capability. This includes detecting changes in the industry, tracking competitor strategy and understanding market trend.

Key Words: dynamic capabilities, sensing capability, performance

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