Effects of dynamic capabilities on performance of travel firms in Nairobi County
Date
2024
Authors
Kufwafwa, A. M.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Over the recent past, the global business environment has been marked by intense competition and dynamism, with businesses being compelled to adapt and realign their resources as well as capabilities in order to attain superior performance. In Kenya, the travel industry within the tourism sector has been subject to instability, rapid technological shifts and changing consumer preferences. Consequently, in spite of heavy investment in marketing capabilities, travel firms have continued to face dismal performance. It was therefore important for the travel firms to develop and maximize on dynamic capabilities so as to attain superior performance in the wake of such environmental dynamism. This study examined the effects of dynamic capabilities on the performance of small and medium-sized travel firms in Nairobi County, with the moderating effects of firm characteristics. The study was anchored on the Resource-Based View and the Dynamic Capabilities Approach. This study utilized judgement sampling where primary data was collected through self-administered questionnaires. The research population consisted of 350 tour operators and travel agents, from which a sample size of 129 was under study. The research response rate was approximately 56%, which accounted for 72 out the 129 travel firms in the sample space. Descriptive data was presented using bar graphs and pie charts. Data analysis was done through Spearman’s rho correlation analysis and multiple regression analysis. The research established that there was a significant positive relationship between dynamic capabilities, namely innovation capabilities, learning capabilities and resource reconfiguration capabilities, and the performance of small and medium-sized travel firms in Nairobi County. The moderating variable of firm characteristics (firm age and firm size) had significant effect on the relationship between dynamic capabilities and firm performance, and therefore moderated the relationship.
Description
Full - text thesis
Keywords
Citation
Kufwafwa, A. M. (2024). Effects of dynamic capabilities on performance of travel firms in Nairobi County [Strathmore University]. http://hdl.handle.net/11071/15569