Dynamic capabilities and organizational performance in manufacturing firms in Kenya

Abstract

The purpose of this study was to examine how dynamic capabilities impacted the organisational performance of manufacturing companies in Kenya. Specifically, the research investigated the relationship between dynamic capabilities and organisational performance in Kenyan manufacturing companies through the lenses of sensing, seizing, reconfiguring, and organisational learning capacities. Contingency Theory, RBV, KBV, and DYST served as the theoretical frameworks underpinning the research. Fifty of the most well-known industrial firms were the focus of the descriptive research. Data were collected from 150 respondents in 50 manufacturing firms. Data were0analysed using both descriptive and0inferential statistics.. The study revealed that Kenyan manufacturing firms moderately adopted sensing, seizing, and reconfiguration capabilities, all of which had a positive and0significant effect on organizational performance. While firms effectively scanned environments, applied knowledge, and reengineered processes, gaps remained in systematic knowledge creation and continuous business model adaptation. Organizational learning was moderately supported internally but limited externally, and although the overall model was significant, its moderating effect on dynamic0capabilities and performance was not. The0study recommends that Kenyan manufacturing firms strategically strengthen their dynamic capabilities and organizational learning to boost performance and competitiveness. Firms should invest in advanced sensing systems, such as digital technologies for real-time market intelligence, and foster a culture of proactive information sharing to identify opportunities and threats effectively. Future studies could explore the sectoral variations in dynamic capabilities by extending the research beyond manufacturing firms to include service, technology, and agricultural sectors.