The Relationship Between Dynamic Capability and Performance in Shipping Industry in Kenya
Abstract
Dynamic capabilities help units extend, modify, and reconfigure their existing
operational capabilities into new ones that better match their changing
environment. Global competition, technological advances and changing needs of
consumers, competitive paradigms are driving firms to compete, simultaneously
along different dimensions such as design and development of products,
manufacturing, and distribution, communicating and marketing. The objective of
this study was to determine the relationship between dynamic capability and
performance in the shipping industry in Kenya. The specific objective was to
determine the organizational capabilities that affect performance and the effect of
capability dynamism on performance in the shipping industry. The study used two
theories namely Resource based and Knowledge based to strengthen its case on
the relationship between dynamic capability and performance. The target
population was 30 registered shipping companies operating in Mombasa Kenya.
The study adopted a cross sectional survey for its research design. A modified
Likert scale questionnaire was developed divided into three parts. A pilot study
was carried out to refine the instrument. The quality and consistency of the survey
was further assessed using Cronbach's alpha. The overall Cronbach's alpha for the
four categories which was 0.752. Data analysis was performed on a computer
using Statistical Package for Social Science (SPSS Version 22) for Windows.
Analysis was done using frequency counts, percentages, means and standard
deviation, regression, correlation and the information generated was presented in
form of graphs, charts and tables.Out of the 30 questionnaire administered, 22
were returned making a response rate of 73.33%.There is a very strong positive
correlation between organizational capability dynamism with performance as
demonstrated by the Karl Pearson correlation model of 0.768 and 0.880. The
study concluded that there is a positive relationship between dynamism and
performance. The study recommended that shipping companies should invest
more in research and development to deal with the ever changing external
environment. This is because all the shipping lines operate in more than one
country as per the research finding which pose different and ever changing
environmental challenge.
Publisher
University of Nairobi