DYNAMIC CAPABILITIES AND PERFORMANCE OF MICRO-FINANCE INSTITUTIONS IN MOMBASA COUNTY, KENYA
Abstract
The general objective of the study is to establish the effect of dynamic capabilities on performance of micro-finance institutions in Mombasa County. This study adopted an explanatory research design. The target population for the study comprises of top-level management, middle level management and employees who were 397 employees working in the micro-finance institutions. The study top-level management, middle level management and employees who were 80 working at the micro-finance institutions within Mombasa County was calculated based on Yamane (1967) formula at 95% confidence level. Structured questionnaires were used to collect data from the employees of micro-finance institutions based in Mombasa County. The data collected was edited, cleaned, coded and analyzed using both descriptive and inferential statistics with the help of IBM SPSS Statistics for Windows, Version 25.0. The results were summarized and presented in form of tables, figures and charts, and interpretations provided. The study established that substantial resources is committed by the MFIs for opportunities identification through environmental scanning. The MFIs also uses resources to identify trending financial technologies with a view to upgrading. They also make changes to their strategies continually informed by the information they obtain form the market and adjust its offerings. The study found that the micro-finance institutions are not always able to respond to market disruption faster. The study concluded that the micro-finance institutions explicitly identifies strategic learning capabilities as a key element in planning and hence provides orientation towards the development, transfer and protection of strategic learning capabilities. The MFIs also acquires learning capabilities from external sources for developing new products and uses the obtained learning capabilities to respond to consumer needs and preferences. The study recommended that MFIs should develop flexible structures that could make the institutions to respond to management actions faster. In addition, the MFIs should adopt marketing information capable of strengthening relationship with customers. The marketing team of MFIs should be tasked with creation, maintenance and enhancement of customer relations. In addition, the MFIs marketing team should be in a position to respond to competitive actions that threatens the micro-finance.
Key Word: Dynamic Innovation, Dynamic Learning, Dynamic Marketing, Dynamic Managerial Capabilities
CITATION: Musau, M. M., & Kavale, S. (2022). Dynamic capabilities and performance of micro-finance institutions in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 9 (4), 323 - 342.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2416
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