RELATIONSHIP BETWEEN STRATEGIC RESPONSE 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 strategic response capability and export performance of manufacturing firms in Kenya. The study was grounded on resource-based view theory, systems theory and dynamic capabilities theory. A total population of 130 individuals comprising of managers, heads of departments and supervisors from 26 export manufacturing firms located within Kiambu County in Kenya were sampled. Descriptive statistics such as frequencies, percentages, means and standard deviation were estimated and the information was presented inform of tables and graphs. Inferential data analysis was done using Pearson correlation coefficient and multiple regression analysis done in order to establish the relationships between strategic response capability and export performance. 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 strategic response capability elements and export performance of manufacturing firms in Kenya. The results revealed positive and significant relationship between strategic response capability and export performance of manufacturing firms. The results also revealed that operational capabilities have no significant moderating effect on the relationship between strategic response capability and export performance of the manufacturing firms. The study therefore recommended that for manufacturing firms in Kenya to increase their export performance, they should frequently scan their export markets, analyze information gathered from external environments, review changes in consumer needs and preferences and develop their products to suit changing markets.

Keywords: Strategic Response Capability, Dynamic Capabilities, External Environment, Manufacturing Firms, Export Performance, Competitive Advantage

CITATION: Kabue, S. T., Oloko, M. A., & Muturi, W. (2019). Relationship between strategic response capability and export performance of manufacturing firms in Kenya. The Strategic Journal of Business & Change Management, 6 (4), 980 – 991


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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1429

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