Dynamic Capabilities and Performance of Selected Commercial Banks in Nairobi City County, Kenya
Ali, Zamzam Mohamed
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Commercial banks Kenya play a very important role in enhancing the country’s economic growth. Dynamic capabilities are significant for business enterprises to attain competitive edge that is sustainable and make sure that the performance of the company is superior. The main purpose was to determine the influence of dynamic capabilities and performance of commercial banks in Nairobi. City County, Kenya. The specific goals; to establish the influence of innovative capability, technical and learning culture capability on performance of selected commercial banks. Theories used are; dynamic capability’s theory, balanced score card theory, resource-based view theory and from learning theory. To achieve this objective, descriptive survey was adopted. Targeted population was 3 commercial banks that are located in Nairobi County. The study targeted 236 respondents who are management level employees of the selected banks. Selected sample was 49 respondents. In order to get the required sample size, stratified random sampling technique was utilized. Data collection was done by the use of questionnaires which were administered individually to each respondent. Pretesting of questionnaire was done to ensure reliability and validity. SPSS (version, 23) was utilized to analyze the collected data. Quantitative data collected was scrutinized by use of descriptive statistics and inferential statistics were done. Multiple regressions were computed to find out the influence of dynamic capabilities on performance. It was found that the association of innovations capability, technical capability, learning culture capability and performance is significantly positive. The study therefore suggests management of the bank to embrace various forms of innovations including, product, service, market, and process innovations. It is also suggested that banks take a more proactive approach to producing products and services that add value to their clients. Banks must also empower their front-line executives to become more customer-centric, as this provides an opportunity for customers to provide input into innovative decision-making. Bank should improve its technical knowledge capacity through knowledge management, talents and skills acquisition, knowledge creation, knowledge gathering, knowledge diffusion and knowledge use. The study also recommends the need for policy intervention to improve operator’s knowledge and skills. Bank should embrace practices that improve customer service and satisfaction such as reduced costs, multiple products provisions, high levels of customer support, and effective employees.