Influence of dynamic capability on growth sustainability of listed construction and allied firms in Kenya
Date
2022
Authors
Ariga, Caroline
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The business market's climate is becoming increasingly dynamic. This implies that only firms that can deploy new capabilities will survive, while those that fail to adapt may cease to exist. Today's highlighted concern for any organization is the challenge of surviving in such a climate. The fundamental requirement for all organizations is dynamic capability, which allows them to adapt to changing circumstances. The study investigated the influence of dynamic capabilities on growth sustainability of listed construction and allied firms in Kenya. The dynamic capability theory guided the study and the cross-sectional design was also employed in the study. Five listed construction and allied firms formed the target population and a census survey was used due to the small population; hence all the five firms formed the study sample. Senior level staff and middle level staff were the study respondents. They were picked using judgemental sampling from the departments of business development, marketing, finance, research, human resources and corporate affairs. The judgemental sampling resulted in 30 respondents being selected from each company. Questionnaires were used to collect data with the five-point likert scale type of questionnaire being used in data. Descriptive statistics, correlation analysis and regression were employed in data analysis via the SPSS software. Data was presented using tables. Only 105 questionnaires out of the 150 were returned, hence the study had an adequate response rate. The study descriptive findings indicated that most respondents agreed with the assertion that innovation, learning, marketing and networking capabilities influenced growth sustainability of the listed construction and allied firms. Regression results revealed a statistically significant relationship between innovation capability, learning capability, marketing capability, networking capability and growth sustainability. The study therefore recommends that the management of the listed construction and allied firms increase their innovativeness and proactively think regarding strategic management and ensure that their strategies are effective and differentiated. The management of the construction and allied firms can ensure innovation in different areas such as new products and services and new form of organizations. The study also faced a number of limitations where the focus was on companies that are in the construction industry making it difficult to generalize the findings. The analysis was also on high growth publicly listed construction and allied firms; however, the analysis cannot reveal the gap between average growth or low-growth firms.
Description
A Dissertation submitted in partial fulfilment for the award of a Master of Commerce Degree at Strathmore University
Keywords
Sustainability, Construction and allied firms_Kenya, Business market's climate