Strategic Capabilities and Organizational Performance: A Case of Private Universities in Kenya
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Date
2020-08
Authors
King’oo, Ruth Ndanu
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Private Universities in Kenya have continuously faced a number of challenges such as
declining quality of educational programs, quality of research, authenticity of degrees
granted, flexibility of the university programs, innovations created and efficient
utilization of resources at their disposal. Despite the increasing number of students
seeking higher education, these numbers have not translated to better performance in
these Universities. Modern business environment calls for organizations, including
private Universities to identify and exploit strategic capabilities for them to
effectively compete and boost their performance. These universities need to harness
their resources, and exploit their competences in order to gain competitive advantage.
This study sought to establish the effect of strategic capabilities on performance of
private Universities in Kenya. Specifically, it sought to determine the effect of
information technology capability, human capital capability, networking capability,
and intellectual capability on performance of private Universities in Kenya. The study
also sought to determine the mediating effect of competitive advantage and the
moderating effect of organizational culture on the relationship between strategic
capabilities and performance of private Universities in Kenya. The study was
anchored on Resource-based view theory, organizational learning theory, intellectual
capital theory, human capital theory, balanced scorecard model and the institutional
theory. Further, the study was founded on positivism philosophy and adopted a
descriptive survey research design. The target population for the study was the 31
private universities in Kenya while a sample size of 153 respondents was selected
using stratified random sampling technique. The respondents included the faculty
deans, registrar administration and finance, human resources managers and ICT
managers. Primary data was collected using semi structured questionnaire.
Quantitative data was analysed using descriptive and inferential statistics and
presented using figures and tables. Qualitative data collected through open ended
questions was analysed using common themes and presented in narrative form. In
testing the significance of the model, the coefficient of determination and F-statistic
was computed at 95% confidence level, while hypothesis testing was done using pvalues
at 5% significance level. The study found that information technology
capability, human capital capability, networking capability, intellectual capability, and
competitive advantage were adopted to a moderate extent. However, organizational
culture was emphasised to a large extent. The study concluded that information
technology capability, human capital capability, networking capability and intellectual
capability had a significant positive effect on performance of private universities in
Kenya. Competitive advantage had a partial mediating effect while organizational
culture had a significant moderating effect on the relationship between strategic
capabilities and performance of private Universities in Kenya. The study contributes
to the body of knowledge by filling contextual, empirical, and conceptual gaps earlier
identified in literature. The study recommends that private universities should seek to
acquire and maximise information technology capability, human capital capability,
networking capability and intellectual capability, in order to boost their performance.
Private universities should also differentiate their programmes, manage their cost, and
develop market-oriented programmes and specialisations to generate competitive
advantage. Finally, private universities should promote learning culture, employee
involvement, be customer centric, innovative, and supportive culture. The study
suggested that other studies should be conducted in public universities in Kenya and
other countries and in other institutions of higher learning to establish if similar
conclusions will be reached.
Description
A Thesis Submitted to the School of Business in Partial Fulfilment of the Requirements for the Award of Degree of Doctor of Philosophy in Business Administration (Strategic Management) Of Kenyatta University, August, 2020
Keywords
Strategic, Capabilities, Organizational Performance, Private Universities, Kenya