Strategic Capabilities and Performance of Registered Manufacturing Firms in Nairobi County, Kenya
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Date
2024-09
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Publisher
Kenyatta University
Abstract
Over the past five years, the pandemic and alterations in the business climate have presented significant obstacles to the local manufacturing sector, leading to a rise in the closure and downsizing of industry operations. Because of the industry's enormous economic impact, industry participants are increasingly concerned about the sector's declining performance. Therefore, it is necessary to investigate the most effective ways to boost the industry's performance. Therefore, the purpose of this survey was to determine how strategic capabilities affect the organizational performance of Nairobi County's registered manufacturing firms. The study examined the impact of resource, innovative, marketing, and leadership capabilities on the organizational performance of manufacturing firms registered in Nairobi County. The perspective of resource-based dynamic capabilities, and balance scorecard model served as the theoretical foundation for the investigation. The survey employed a descriptive research design, with the 381 registered firms in the county serving as the research population. Senior functional unit managers were the research's unit of observation in this study which was representative by a sample size consists of 195 firms. The survey relied on quantitative data collection primarily through structured questionnaires that were developed in line with the study objectives. Data was collected for the study using a drop and pick method. The study used SPSS software to code the survey data collected, and figures and tables and presented the results of the descriptive and inferential analyses such as linear regression analysis. The study aimed to gather data to address the research questions and enhance the understanding on the effects of strategic capabilities on the organizational performance of manufacturing firms registered in Nairobi County. The study found that a moderate yet significant relationship between resource capabilities and organizational performance, though the association was not statistically strong. Innovative capabilities, marketing capabilities and leadership capabilities showed a positive and significant influence on the registered manufacturing firms in Nairobi City County Kenya. The study recommended that to enhance organizational performance, firms should invest in advanced resource planning, foster innovation, strengthen leadership through development programs, and leverage data analytics and digital marketing for effective market engagement.
Description
A Research Project Submitted to the School of Business, Economics & Tourism in Partial Fulfillment of the Requirements for the Award of Masters of Business Administration Degree (Strategic Management Option) of Kenyatta University, September 2024.
Supervisor
James M. Kilika