SENSING CAPABILITY AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA
Abstract
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, performanceFull Text:
PDFReferences
Abdullateef, A., Mokhtar, S. & Yusoff, R. (2014). Linkages between dynamic capabilities technologies, knowledge applications and first call resolution in inbound call centres. International Journal of Electronic Customer Relationship Management, 7(1): 68-86.
Almatrooshi, B., Kumar S.S., Farouk, S. (2016) Determinants of performance of commercial state corporations in Kenya: a proposed framework. International Journal of Productivity and Performance Management, 65 (6), 844 - 859
Awasthi, P. & Sangle, P. (2012). The importance of value and context for mobile Dynamic Capability services in banking, Business Process Management Journal, 19(6): 864-891.
Barney, J. (1991), Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120
Barney, J. y Wright, P.M. (1997): “On becoming a strategic partner: the role of human resources in gaining competitive advantage.” Human Resource Management, Vol. 37, nº 1, pp. 20-30.
Boateng, I.A. & Agyei, A. (2013). Commercial state corporation in Ghana: Development, Success Factors and Challenges. International
Chowdhury, A.M. (2011). Assessing The Factors That Led to The Success of Commercial state corporation in Bangladesh: A Case Study on Grameen Bank
Clulow, V., Barry, C., & Gerstman, J. (2013). The resource‐ based Theory and value: the customer‐ based Theory of the firm. Journal of European Industrial Training, 31(1), 19
Cooper, D.R. and Schindler, P.S. (2000) Business Research Methods. 8th Edition, McGraw-Hill Irwin, Boston.
Dess, G. G., & Robinson, R. B. (1984), Measuring performance of commercial state corporations in Kenya in the absence of objective measures: The case of the privately-held firm and conglomerate business unit. Strategic Management Journal, 5(3), 265-273.
Dierickx, I. and K. Cool (1989). "Asset Stock Accumulation and Sustainability of Competitive Advantage” Jeff Savage
Drnevich, P., and Aldas K. (2017). Clarifying the conditions and limits of the contributions of ordinary and dynamic capabilities to relative Performance of commercial state corporations in Kenya . Strategic Management Journal 32: 254–79.
Eisenhardt, K., & Martin, J. (2012). dynamic capabilities : What are they? Strategic Management Journal, 21(10–11), 1105–1121
Ember, C., & Ember, M. (2011). Cross Cultural Research Methods. New York: Altamira Press.
Gavrea, C., Ilies, L. & Stegerean, R. (2011). Determinants of performance of commercial state corporations in Kenya: The case of Romania. Management and Marketing, 6(2): 285-300.
Haleblian, JJ, Kim, JJ, Rajagopalan, N, 2012. The influence of acquisition experience and performance on acquisition behavior: Evidence from U.S. Academy of Management Journal, 49: 357-370
Helfat E., C & Winter, S. (2011). Untangling Dynamic and Operational Capabilities: Strategy for the (N)Ever-Changing World. Strategic Management Journal. 32. 1243-1250. 10.2307/41261789.
Helfat, C. E., & Martin, J. A. (2015). dynamic capabilities : Review and assessment of managerial impact on strategic change. Journal of Management, 41(5), 1281–1312.
Hussain, M., & Hoque, Z. (2012). Understanding non-financial performance measurement practices in Japanese banks. A new institutional sociology perspective. Accounting Auditing & Accountability Journal, 15(2), 62-183
Jeske, H., Chimusoro, E. & Karodia, A. (2015). An evaluation of customer service and the impact of efficiency on Namibias’ logistical sector: A study involving selected Courier Companies. Journal of Business, Economics and Management Studies, 3(6):1-38.
Kapiki, S. T. (2012). Current and future trends in tourism and hospitality: the case of Greece. Tourism management, 20(6), 683-691
Lu, L. (2007). Individual- and social-oriented views of self: Conceptualization, measurement and adaptational functions (III) (Tech. Rep. NSC95-2752-H-008-002-PAE). Taipei, Taiwan: National Science Council
Mahoney, J. T., & Pandian, J. R. (1992). The resource‐based Theory within the conversation of strategic management. Strategic Management Journal, 13(5), 363-380. https://doi.org/10.1002/smj.4250130505
Marsh, S. J., & Stock, G. N. (2011). Creating dynamic capability: The role of intertemporal learning, knowledge retention, and interpretation. Journal of Product Innovation Management, 23(5), 422–436.
Mokhtar, S.H., Nartea,G. & Gan, C. (2012). The Malaysian commercial state corporation system and a comparison with the Grameen Bank (Bangladesh) and Bank Perkreditan Rakyat (BPR-Indonesia). The Arts Journal, 1(3), 60-71
Muduenyi, S., Oluremi, O., Fabi, O. & Ajagbe, M. (2015). Impact of organizational structure on performance of commercial state corporations in Kenya, International Conference on African Development Issues. Retrieved on 9th June 2016 from eprints.covenantuniversity.edu.ng
Nassiuma D. K. (2000). Survey sampling: Theory and methods. Njoro, Kenya: Egerton University Press.
Newbert SL. 2007. Empirical research on the resource-based Theory of the firm: an assessment and suggestions for future research. Strategic Management Journal 28(2): 121–146
Orodho, J. A. (2009). Elements of Education and Social Science Research Methods, Second Edition. Maseno: Kanezja.
Papastathopoulou, P., Avlonitis, G. & Panagopoulos N. (2013). Intra organizational information and communication technology diffusion: implications for industrial sellers and buyers. Industrial Marketing Management, 36(3): 322-336.
Peteraf, M., Di Stefano, G., & Verona, G. (2013). The elephant in the room of dynamic capabilities : Bringing two diverging conversations together. Strategic Management Journal, 34(12), 1389–1410
Priem, Richard & Butler, John. (2001). Is The Resource-Based Theory a Useful Perspective for Strategic Management Research?. The Academy of Management Review. 26. 22. 10.2307/259392.
Protogerou, A., Caloghirou, Y., & Lioukas, S. (2011). dynamic capabilities and their indirect impact on Performance of commercial state corporations in Kenya . Industrial and Corporate Change, 21(3), 615–647
Romme, A.G.L., Zollo, M. and Berends, P. (2010), “dynamic capabilities , deliberate learning and environmental dynamism: a simulation model”,Industrial and Corporate Change, Vol. 19 No. 4, pp. 1271-1299
Shaon, K., & Rahman, H. (2015). A Theoretical Review of dynamic capabilities Effects on Customer Satisfaction and Loyalty. Prague Economic Papers, 4(1), 23-36.
Teece, D. J. (2014). The foundations of enterprise performance: Dynamic and ordinary capabilities in an (economic) theory of firms. The Academy of Management Perspectives, 28(4), 328–352.
Todorova, G., & Durisin, B. (2007). Absorptive capacity: Valuing a reconceptualization. Academy of Management Review, 32(3), 774–786.
Tsekouras, G, Marshall, N, Maron, A, 2011. Creating Routines For Innovation: Insights From An Organisational Experiment. International Conference on Organizational Knowledge, 1: 1-18.
Yazdanfar D. (2013). Profitability determinants among micro firms: Evidence from Swedish data. The International Journal of Managerial Finance, 9(2): 150-160.
Refbacks
- There are currently no refbacks.