PHD-Department of Management Science

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Browsing PHD-Department of Management Science by Subject "Capability and Performance"

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    Information Technology Capability and Performance of Manufacturing Firms in Nairobi City County, Kenya
    (Kenyatta University, 2022) Gitau, Lucy Muthoni; Felix Musau; David M. Nzuki
    Although manufacturing firms support economic development, wealth creation and poverty alleviation, a dismal performance has been reported. In Kenya, the share of gross domestic product (GDP) to manufacturing sector has remained below 10 per cent while its growth rate remained at about 5 percent in the last 10 years. This has been attributed to low innovation and technology diffusion. This study examined the effects of IT infrastructure, personnel, management and reconfiguration capabilities on firm performance. Further, the moderating effect of firm size and the mediating effect of competitive advantage, were explored. The study was anchored on Resource Based View, Unified Theory of Acceptance and Use of Technology, knowledge based and Dynamic Capability Theory and the balanced scorecard. Positivism philosophical approach, descriptive and explanatory research design were adopted. Using stratified and random sampling techniques, a sample of 222 manufacturing firms from Nairobi City County, was obtained from a target population of 526 firms. A semi-structured questionnaire was prepared and used for data collection. The internal consistency test on the data collection tool yielded a Cronbach’s alpha coefficient >0.7 affirming the reliability of the study instrument. Research experts confirmed validity of the study instrument. The data was analysed through descriptive statistics to condense the survey data. To test hypotheses, inferential statistics was used. The results showed a positive significant effect of IT infrastructure capability (β=0.231, p=0.005 < 0.05), IT personnel capability (β=0.165, p=0.044 < 0.05), IT management capability (β=0.183, p=0.018 < 0.05) and IT reconfiguration capability (β=0.288, p=0.001 < 0.05) on performance. The study findings also exhibited a 49.2 per cent explanatory power of IT capability on firm performance. From the study findings, the interaction between IT capability and firm performance was partially mediated by competitive advantage. Firm size did not moderate the relation between IT capability and firm performance. Study findings provide knowledge in IT investment and configuration of IT capability. Subsequently, firms’ IT managers and personnel should proactively build relationships with business functions and promote effective use of information technology through shared insights on business-related knowledge. Firm managers should also invest in building IT capability through planning, organizing, coordinating and control of IT use. Such interventions will lead to enhanced firm competitiveness and performance.