Application of Dynamic Capability Approaches in Commercial Banks in Kenya
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Date
2013-10Author
Ngeera, Muthuri E
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The business environment has become very competitive; the managerial competences
need to change constantly. The banking industry in Kenya is not an exception to this
regard. Dynamic capabilities explain how firms adapt to environmental dynamism by
modifying their underlying resources and capabilities. With the dynamic capabilities
concept, the value an organization may hold is the ability to alter its resource base.
Thus, its competitive advantage can be increased by the creation, integration,
recombination and realization of resources. The objective of the study was to establish
the application of dynamic capabilities in commercial banks in Kenya. A census
cross-sectional survey was adopted in this particular research so as to include all the
banks views of such innate factors as a firm's dynamic capabilities, with a target
population of 41. In light of this therefore, a survey was deemed as the best design to
fulfill the objective of the study. The study made use of primary data which was
collected through a questionnaire by the researcher. The data obtained from the
questionnaire was analyzed using descriptive quantitative analysis. This method of
analysis was adopted because of the quantitative nature of the response acquired. This
study was guided by various theoretical and literature reviews. The study found out
customer demands, market trends, company mission and vision as the main factors
affecting the application of dynamic capability approaches at the commercial banks.
Knowledge management and the emphasis on research and development activities had
major impact on firms' performance as dynamic capabilities approaches. In light of
the findings the study recommends that since most of the commercial banks in Kenya
have been successful in the application of dynamic capability approaches so far, there
is need to focus on how their expansion strategy is affecting their performance, and
how globalization is affecting their competitive advantage. This will enable these
banks to attain the full benefit of the application of dynamic capability approaches.
Given the dynamic nature of the financial sector in the country in which the
commercial banks are operating, the study recommends strict adherence to sound
financial strategies.
Citation
Ngera,Muthuri,E.,October,2013.Application Of Dynamic Capability Approaches In Commercial Banks In Kenya.Publisher
University Of Nairobi