Empirical Analysis of the Effect of Operational Capability on Performance of Food Processing Firms in Nairobi City County, Kenya

Abstract

Research Summary: This study sought to investigate the effect of operational capability on performance. The target population of the study was 102 registered Food Processing Firms. The study was anchored on resource based view theory. The researcher adopted positivism research philosophy and a mix of explanatory and descriptive research designs. Multistage probability sampling was used to select 155 respondents. Primary data was collected using self-administered structured questionnaires. Descriptive statistics were used to summarize the characteristics of the sample while simple linear regression analysis was used to test the research hypotheses. The study established that operational capability has a positive effect on performance. The findings of the study underscore the significance of operational capabilities in the value propositions development process and ultimate realization of enhance organizational performance. Managerial summary: Operational capability was found to have a positive effect on performance of food processing firms in Nairobi City County. It’s therefore instructive for management to foster activities and practices that seek to lower the unit cost of production as well introduce new processes that enhance delivery of services to customers. Relevant policies should also be formulated to guide investment, exploitation of resources and practices in respect of operational capability. Keywords: Competitive Advantage, Food Processing Firm, Strategic Assets, Operational Capability and Organizational Performance