INFORMATION TECHNOLOGY CAPABILITIES AND COMPETITIVE PERFORMANCE OF MANUFACTURING FIRMS IN KISUMU CITY, KENYA
Abstract
Competitive performance of the manufacturing sector remains the lifeblood of an economy considering critical role it plays in a country’s long-term prosperity. Despite the increased awareness about the essence of organizational capabilities, it is witnessed that the dynamics in the business environment still presents fresh daily challenges to the manufacturing sector. In addition, manufacturing firms in Kenya have not found a way to exploit this conjuncture, and are not sufficiently competitive with new market requirements. It is in this regard that this study was designed to analyze the role of organizational capabilities by singling out Information Capabilities on Competitive Performance of manufacturing firms in Kisumu City. The study was guided by the following research objective; to examine the role of information technology capabilities on the competitive performance of manufacturing firms in Kisumu city. This study relied on resource-based view and Porters generic theories. In a bid to effectively achieve this, the study adopted a cross-sectional study design based on samples drawn from across the existing manufacturing firms within the city of Kisumu. The target population included operations managers and supervisors of the manufacturing factories. These were systematically selected by use of census inquiry. The operations managers and supervisors were purposively selected. Data was collected by use of a questionnaire from the respondents and analyzed by use of both inferential and descriptive statistics using SPSS version 25. From the findings Information Technology Capabilities had an impact on Competitive Performance of manufacturing companies in Kisumu. This implied that Information Technology Capabilities remains a strategic pillar for competitive performance in the manufacturing sector. The study concluded that there is need for the manufacturing companies to strategically invest their resuorces to enhance their information technology capabilities for competitive performance.
Key Words: Information Technology Capabilities, Organization Capabilities, Competitive Performance
CITATION: Muchiri, J., & Juma, J. (2023). Information technology capabilities and competitive performance of manufacturing firms in Kisumu City, Kenya. The Strategic Journal of Business & Change Management, 10 (1), 772 – 785.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i1.2579
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