RELATIONSHIP BETWEEN LEARNING CAPABILITY AND EXPORT PERFORMANCE OF MANUFACTURING FIRMS IN KENYA

STEPHEN THUO KABUE, PROF. MARGARET A. OLOKO (Ph.D), PROF. WILLY MUTURI (Ph.D)

Abstract


The purpose of the study was to analyze the relationship between learning capability and export performance of manufacturing firms in Kenya. The study adopted a mixed method approach in data collection where a triangulation research design was employed and both quantitative and qualitative data was collected and analyzed concurrently. A total population of 130 individuals from 26 export manufacturing firms located within Kiambu County were sampled. Both stratified random sampling and random sampling techniques were used to select a sample of 98 respondents from the target population. The researcher adopted questionnaire as the primary data collection tool. Inferential data analysis was done using Pearson correlation coefficient. Hypothesis testing was done using Chi-square test where p-value and F-statistic were computed at 95% confidence level to test whether there were any significant relationships between dynamic capability elements and export performance of manufacturing firms in Kenya. The results revealed positive and significant relationship between learning capability and export performance of manufacturing firms in Kenya. The results also revealed that operational capabilities significantly moderate the relationship between learning capability and export performance of manufacturing firms in Kenya. The study recommended that for manufacturing firms in Kenya to increase their export performance: they should create an atmosphere for the development and enhancement of organizational learning capabilities by encouraging employees to advance their skills and abilities through seminars and trainings, allow for new idea generation, conduct market research, trade fairs and invest in tools and resources to analyze market trends so as to keep ahead of market situations. Thus, the study results provided a clearer understanding of the contribution of learning capability on firms operating in dynamic environments such as the export markets.

Keywords: Dynamic Capability, learning capability, operational capability, external environment, manufacturing firms, export performance

CITATION: Kabue, S. T., Oloko, M. A., & Muturi, W. (2019). Relationship between learning capability and export performance of manufacturing firms in Kenya. The Strategic Journal of Business & Change Management, 6 (4), 992 – 1005.


Full Text:

PDF

References


Abala, D. O. (2012). Determinants of manufactured exports in Kenya: an application of control function approach. DBA Africa management review, 3 (1), 50-72

Abiodun, T. S. (2016). The impact of strategic learning orientation, entrepreneurial orientation and reconfiguring capabilities on export performance of SMEs in Nigeria. International journal of management science and business administration, 2(3), 33-42

Adeola, O., Olabode, O. & Assadinia, S. (2018). The effect of export market-oriented culture on export performance. International Marketing Review, 35 (4), 637-660.

Alavi, M., & Leidner, D. E. (2001). Knowledge management and knowledge management systems: conceptual foundations and research issues. MIS Quarterly, 25 (1), 107-136.

Alegre, J., Sengupta, K., & Lapiedra, R. (2011). Knowledge management and innovation performance in a high-tech SMEs industry. International small business journal, 20(13), 31:454

Alegre, J., Pla-Barber J., Chiva, R. & Villar, C. (2012): Organizational learning capability, product innovation performance and export intensity. Technology analysis & strategic management, 24 (5), 511-526

Barrales-Molina, V., Montes, F. & Gutierrez-Gutierrez, L. (2015). Dynamic capabilities, human resources and operating routines. Industrial Management & Data Systems, 115 (8), 1388-1411

Barreto, I., (2010). Dynamic capabilities: A review of past research and an agenda for the future. Journal of Management, 36(1), 256‐ 280.

Belsley, D.A., Kuh, E. & Welsch, R.E. (2004). Regression Diagnostics: Identifying Influential Data and Sources of Collinearity. John Wiley & Sons, Inc. New York.

Cegarra, J.G. & Sánchez, M.E. (2011). Balancing exploration and exploitation of knowledge through an unlearning context: An empirical investigation in SMEs. Journal of Management Decision, 49, 1099-1119

Chiva, R., Ghauri, P. & Alegre, J. (2014). Organizational learning, innovation and internationalization: A complex system model. British Journal of Management, 25(4), 687-705

Cooper, D. R. & Schindler, P.S. (2006). Business Research Methods, (9th Edn). New York, McGraw Hill.

Creswell, J. W. & Plano Clark, V. L. (2011). Designing and Conducting Mixed Methods Research (2nd ed.). Thousand Oaks, CA: Sage Publications, Inc.

Cunningham, E. (2008). Structural equation modelling using AMOS 21. Swinburn University of Technology, Melbourne.

Diamantopoulos, A. & Kakkos, N. (2007) Managerial assessments of export performance. Journal of International Marketing.15 (3): 1-31

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10 –11), 1105–1121.

Fletcher, M. and Harris, S. (2011). Knowledge acquisition for the internationalization of the smaller firm: content and sources. International Business Review.

Ghasemi, A. & Zahediasl, S. (2012). Normality Tests for Statistical Analysis: A Guide for Non-Statisticians. Int J Endocrinol Metab. 10 (2), 486-9.

Gilaninia, S., Rankouh, A. & Gildeh, M. (2013). Overview on the importance of organizational learning and learning organization. Journal of Research and Development 1(2)

Helfat, C.E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D.J., & Winter, S. (2007). Dynamic Capabilities: Understanding Strategic Change in Organizations. Malden M.A: Blackwell

Helfat, C.E. & Winter, S.G. (2011). Untangling dynamic and operational capabilities: strategy for the ever-changing world. Strategic Management Journal, 32(11), 1243–1250

Johanson, J. & Vahlne, J. E. (2009). The Uppsala Internationalization Process Model Revisited: From Liability of Foreignness to Liability of Outsidership. Journal of International Business Studies, 40(9), 1411-1431.

K.A.M. (2014). Kenya Manufacturers and Exporters Directory. Kenya Association of Manufacturers, Nairobi.

Katsikeas, C. S., Leonidou, C. L & Morgan, A., (1994). Firm level export performance assessment: Review, evaluation and development. Academy of Marketing Science

KIPPRA. (2013). Creating an Enabling Environment for Stimulating Investment for Competitive and Sustainable Counties. Kenya Economic Report. Kenya

Kombo, K. D. & Tromp, L. A., (2006). Proposal and Thesis Writing. Don Bosco Printing Press, Kenya.

Kothari, C.R., (2006). Research Methodology: Methods and techniques, (1st Ed), New Age international publishers.

Lahat, A. & Shoham, A. (2014). Benchmark the marketing and operation capabilities for international firm’s export performance. 2nd World conference on business, economics and management, Social and Behavioral Sciences, 109

Latif, A. & Jin, C. (2010). Innovation and Business Enterprise. Business science Reference. USA

Lavie, D. (2006). The competitive advantage of interconnected firms: an extension of the resource-based view. Academy of Management Review, 31 (3), 643-47.

Lu, J. W., & Beamish, P. W. 2001. The internationalization and performance of SMEs. Strategic Management Journal, 22: 565-586.

Marandu, E. (2008). Strategy Factors Associated with the Export Performance of Manufacturing Firms. Journal of Business in Developing Nations. Vol 11

Musuva, A. M, Ogutu, M., Awino, Z. B. & Yabs, J. (2013). The Influence of Firm Capabilities on the Internationalization and Performance of Publicly Quoted Companies in Kenya. DBA Africa Management Review, 3 (2), 40-58

Nunnally, J. C. (1978). Psychometric theory (2nd Ed.). Newyork: McGraw-Hill.

Orodho, A. J. (2003). Essentials of Educational and Social Sciences Research Method. Nairobi: Masola Publishers

Pavlou, P. A. & El Sawy, O. A. (2011). Understanding the elusive black box of dynamic capabilities, Decision Sciences Journal, 42(1), 239‐273.

Prashantham, S. & Young, S. (2011). Post-Entry Speed of International New Ventures. Entrepreneurship Theory and Practice, 35(2), 275–292.

Protogerou, A, Caloghirou, Y, & Lioukas, S. (2012) Dynamic capabilities and their indirect impact on firm performance. Industrial and Corporate Change, 21, 615-647

Rengkung, L. (2018). Modelling of dynamic capabilities: a system dynamics approach. Academy of Strategic Management. 17 (5)

Shoham, A. (1998). Export performance: a conceptualization and empirical assessment. Journal of International Marketing, 6 (3), 59-81

Singh, Y.K. (2006). Fundamental of Research Methodology and Statistics. New age International Publishers, New Delhi.

Sousa, C.M. (2004). Export performance measurement: an evaluation of the empirical research in the literature. Academy of Marketing science review, 4

Schweizer, R., Vahlne, J.-E. & Johanson, J. (2010). Internationalization as an entrepreneurial process. Journal of Entrepreneurial Entrepreneurship, 8, 343-370.

Tabachnick, B. G., & Fidell, L. S. (2007). Using Multivariate Statistics (5th ed.). New York

Teece, D. J. (2007). Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance. Strategic Management Journal, 28(13), 1319-1350.

Teece, D. J. (2014). A dynamic capabilities-based entrepreneurial theory of the multinational enterprise. Journal of International Business Studies, 45(1), 8 –37.

Teece, D. J (2019). A capability theory of the firm: an economics and (Strategic) management perspective, New Zealand Economic Papers, 53(1), 1-43,

Thakur, N., & Chaudhuri, M. (2015). Exploring dimensions and demographics in relation to learning organization. The International Journal of Business & Management, 3(3), 334- 340.

UNIDO. (2013). Sustaining Employment Growth: The Role of Manufacturing and Structural Change. Industrial Development Report. Australia

Weerawardena, J., Mort, G.S., Liesch, P.W. & Knight, G. (2007). Conceptualizing accelerated internationalization in the born global firm: A dynamic capabilities perspective. Journal of World Business. Elsevier

Winter, S.G. (2000). The satisficing principle in capability learning. Strategic Management Journal, 21(10), 981–996.

World Bank. (2013). Agribusiness Indicators in Kenya. Agriculture and Environmental Services, World Bank, Washington DC

Yap, B. W., & Sim, C. H. (2011). Comparisons of various types of normality tests. Journal of Statistical Computation and Simulation, 81(12), 1-15.

Zollo, M. & Winter, S.G. (2002). Deliberate learning and the evolution of dynamic capabilities. Organization Science, 13, 339–351

Zott, C. (2003). Dynamic capabilities and the emergence of intra-industry differential firm performance: insights from a simulation study. Strategic Management Journal, 24(2): 97-125.




DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1430

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.