EFFECT OF DYNAMIC MANAGERIAL CAPABILITIES ON FIRM PERFORMANCE: EVIDENCE FROM TRAVEL AGENCIES AND TOUR OPERATORS IN KENYA
Abstract
The purpose of this research was to investigate the effect of dynamic managerial capabilities on firm performance in travel agencies and tour operators in Mombasa County, Kenya. Specifically, the research sought to investigate the effect of managerial human capital capability, managerial social capital capability, and managerial cognition capability on firm performance in travel agencies and tour operators in Mombasa County, Kenya. Drawing on the resource-based theory, dynamic capabilities theory, and dynamic managerial capabilities theory, the research utilized a positivist research philosophy and a non-experimental research methodology. The research utilized a correlational cross-sectional survey design for testing non causal relationships among variables. Stratified random sampling technique was used to select a sample size of 29 travel agencies and 86 tour operators in Mombasa County, Kenya. A cross-sectional survey-based approach was used to collect primary data gathered using self-administered structured questionnaires delivered through the drop and pick method. Data was processed and entered into the statistical package for social sciences (SPSS) version 26 to create a data sheet to be used for analysis. Data was analyzed using descriptive and inferential statistics. Pearson’s product moment correlation analysis was performed to confirm or deny the relationship between the variables. Multiple linear regression analysis was used for hypotheses testing. Results showed that dynamic managerial capabilities had direct positive effect on firm performance. The findings indicated that managerial human capital capability, managerial social capital capability, and managerial cognition capability were able to positively and significantly predict firm performance. Managers and policy makers within the travel and tourism sector should to focus on strengthening dynamic managerial capabilities to improve the performance of travel agencies and tour operators as they recover from the COVID-19 crisis. This research generates novel insights into how dynamic managerial capabilities predict firm performance in the context of travel agencies and tour operators. However, the current research has a number of limitations, some of which offer fruitful avenues for future research. Future research could examine into how dynamic managerial capabilities predict firm performance in other sectors or in other regions.
Key words Dynamic managerial capability, Dynamic managerial cognition capability, Dynamic managerial human capital capability, Dynamic managerial social capital capability, Firm performance
CITATION: Mwajambia, R. H.,& Kising’u, T. M. (2022). Effect of dynamic managerial capabilities on firm performance: Evidence from travel agencies and tour operators in Kenya. The Strategic Journal of Business & Change Management, 9 (2), 645 – 665.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i2.2288
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