An Empirical Analysis of the Relationship Between Resource Fluidity and Firm Performance: A Perspective of Tours and Travel Companies In Kenya
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Date
2021-11
Authors
Kitur, Timothy
Godfrey, Kinyua M.
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Abstract
All companies exist in an evolving environment that affects their performance. As a result, an adaptive
strategy is necessary for the execution of result-oriented excellence. Due to the unanticipated changes in the environment,
firms should be agile and not hesitate to pursue emerging opportunities and continuous improvement. The sustainable
growth of the tourism industry is anchored in a constant and competitive supply of tours and travel services. The
emerging markets require the tour firms to embrace innovation to pursue opportunities even in the event of market
dynamics. The current study was aimed at establishing the relationship between resource fluidity and firm performance of
tours and travel companies in Kenya. The literature review established conflicting findings on the effect of resource
fluidity on firm performance. This study will be of great value to the management of tours and travel companies in Kenya,
policymakers, and researchers, and academicians. The theoretical review focused on three major theories that include;
Resource-based theory, and Dynamic Capabilities. A descriptive research design was adopted in the study. The target
population for the study was the management staff of the four management levels of tours and travel companies in Kenya
which included; senior management, middle level, functional level, and technical level. A proportionate stratified
sampling technique was used to select the sample size of 176 from a target population of 586 units. A questionnaire was
utilized to gather the required data and the data was analyzed by the use of simple linear regression models. The study
concluded that there is a statistically significant relationship between resource fluidity on firm performance amongst
tours and travel firms in Kenya. The study recommends a comparative study to be done to include other industries with a
major focus on resource fluidity and organization performance. Besides, organizational activities should be reconfigured
and resources redeployed adequately to boost internal organizational capabilities. The firm strategy needs to be
dissociated from the organizational structure to ensure rapid resource deployment. Resource allocation should follow a
regular segmental process and include incentives to facilitate a consistent alliance process.
Keywords: Resource Fluidity, Resource Reallocation, Flexible budgeting, Knowledge Mobility, Organizational
Adaptability, and Firm Performance
Description
Research Article
Keywords
Resource Fluidity, Flexible budgeting, Knowledge Mobility, Organizational Adaptability, Firm Performance, Resource Reallocation