STRATEGIC CAPABILITIES AND ORGANIZATIONAL PERFORMANCE OF SELECTED CHARTERED PRIVATE UNIVERSITIES IN NAIROBI CITY COUNTY, KENYA
Abstract
This study assessed the effect of strategic capabilities on the performance of private universities in Nairobi City County, Kenya. The study research design was descriptive research design. The study targeted 6 private universities that were fully licensed and operative in Nairobi city county, Kenya. The respondents consisted of 125 employees working under planning and development/finance, administration services, deans and directors. Data was collected through the use of structured questionnaire. The findings showed that managerial capabilities had a positive and significant effect on performance of private universities in Nairobi City County, Kenya (β1=1.078, sig<0.05). The result showed that a unit change in technological capabilities resulted to positive units changes in organization performance in private universities in Kenya (β2=0.732, sig<0.05). The study concluded that technological capabilities had a positive and significant effect on performance of private universities in Kenya. A unit change in marketing capabilities resulted to positive units changes in performance of private universities in Kenya. The effect of marketing capabilities was the highest on performance of private universities in Nairobi City County, Kenya compared to other indicators used in the study (β3 =1.302, sig<0.05). The study concluded that marketing capabilities have a positive and significant effect on performance of private universities in Kenya. The changes in research and development had no significant effect on performance of public universities at 5% significance level (sig>0.05). The study concluded that R&D activities had insignificant effect on organizational performance. Based on the findings, The study recommended the senior management in the private universities to take a care role in ensuring team work, coordination of activities and effective communication. In order to improve knowledge, it was advised that private institutions concentrate more on technology advancement in the key areas of operation such as administration, teaching, planning, R&D, marketing and examination administration. It was suggested that private universities should adjust their brand position in the market to stand out from the competition and stay abreast of customer demands and requirements in order to increase performance.
Key Words: Managerial, Technology, Marketing, Research and Development
CITATION: Avedi, H. K., & Anyieni, A. (2023). Strategic capabilities and organizational performance of selected chartered private universities in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 10 (4), 417 – 437. http://dx.doi.org/10.61426/sjbcm.v10i4.2763.
Full Text:
PDFReferences
Ahmad, S. J. &Saeed, Z. M. (2013). Effect of research and development on firm performance in the Iranian manufacturing industries: A structure – conduct performance approach. Information Journal Paper, 3, 93-118.
Ahmed, K. A. (2017). The Influence of Development on Managerial Capabilities and Performance: Empirical Evidence from Pakistan. Journal of Southeast Asian Research, 1-12. 10.5171/2017.164526
AL Afaishat, T., Khraim, H. & Al-Maadhedee, M. (2022). Effect of network strategic capabilities on digital transformation in Jordanian universities. Problems and Perspectives in Management, 20(3), 247-257. doi:10.21511/ppm.20(3).2022.20
Cacciolatti, L., & Lee, S. H. (2016). Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power. Journal of Business Research, 69(12), 5597– 5610. doi:10.1016/j.jbusres.2016.03.067
Chepkole, G. K. & Deya, J. (2019). Effect of strategic capability on competitive advantage of information technology firms in Nairobi City County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(5), 104-127
Commission for University Education (2017). Summary Report of the Quality Audit Inspection of Universities Authorized to Operate in Kenya.
Dzinekou, J. Y. & Arasa, R. (2018). Managerial Capabilities and Private University Performance in Kenya. International Journal of Research and Innovation in Social Science, 2(8), 141-149.
Fink, L., Yogev, N., & Even, A. (2017). Business intelligence and organizational learning: An empirical investigation of value creation processes. Information & Management, 54(1), 38– 56. doi:10.1016/j.im.2016.03.009
Gatama, N. N. (2021). Strategic Capabilities and Performance of Kenya Revenue Authority [Master Thesis], Kenyatta University.
Gatama, N. N. & Kavindah, L. (2022). Strategic Capabilities and Performance of Kenya Revenue Authority, Kenya. International Journal of Business Management, Entrepreneurship and Innovation, 4(1), 36-52.
Ghaffar, A. & Khan, W. A. (2014). Impact of Research and Development on Firm Performance. International Journal of Accounting and Financial Reporting, 4(1), 357-367.
Halaskova, M., Gavurova, B. & Kocisova, K. (2020). Research and Development Efficiency in Public and Private Sectors: An Empirical Analysis of EU Countries by Using DEA Methodology. Sustainability, 12(17), 7050; https://doi.org/10.3390/su12177050
Heredia, J., Castillo-Vergara, M., Geldes, C., Gamarra, F.M.C., Flores, A. & Heredia, W. (2022). How do digital capabilities affect firm performance? The mediating role of technological capabilities in the “new normal.” Journal of Innovation & Knowledge, 7(1001712), 1-10.
Hult, E. & Olson, E. M. (2011). Factors influencing the relative importance of marketing strategy creativity and marketing strategy implementation effectiveness. Industrial Marketing Management, 39, 551–559
Jin, B. & Cho, H.J. (2022). Examining the role of international entrepreneurial orientation, domestic market competition, and technological and marketing capabilities on SME’s export performance. Journal of Business & Industrial Marketing, 33(5), 585-598 https://doi.org/10.1108/JBIM-02-2017-0043
Kamboj, S. & Rahman, Z. (2021). Marketing capabilities and firm performance: literature review and future research agenda. International Journal of Productivity and Performance Management, Vol. 64 No. 8, pp. 1041-1067. https://doi.org/10.1108/IJPPM-08-2014-0117
Kaplan, R.S., Norton, D.P. (1992). The balanced scorecard—measures that drive performance. Harvard Business Review, 70, 71–79
Khraim, H. (2022). The influence of technological innovative capabilities on firm performance: Moderating effect of strategic agility. Problems and Perspectives in Management, 20(2), 459-470. doi:10.21511/ppm.20(2).2022.38
King’oo, R. N., Kimencu, L. &Kinyua, G. (2021). The Role of Networking Capability on Organization Performance: A Perspective of Private Universities in Kenya. Journal of Business and Economic Development, 5(3), 178-186. doi: 10.11648/j.jbed.20200503.18
Kogo, P. K. &Kimencu, L. (2022). Organizational capabilities and performance of insurance companies in Nairobi County city county, Kenya. International Academic Journal of Human Resource and Business Administration, 3(1), 126-149
Lopes, C. M., Scavarda, A., Hofmeister, L. F., Thomé, A. M. T., & Vaccaro, G. L. R. (2017). An analysis of the interplay between organizational sustainability, knowledge management, and open innovation. Journal of Cleaner Production, 142, 476–488. doi:10.1016/j.jclepro.2016.10.083
Mann, T. (2015). Big Manufacturers Tighten Supply Chains as Low-Growth Forecasts Spread. The Wall Street Journal, Available at: http://www.wsj.com/articles/big-manufacturers-tighten-supply-chains-as-low-growth-forecasts-spread-1450912180
Mbithi, M. B. (2016). Effects of strategic choice on performance of sugar companies in Kenya [PhD Dissertation], Jomo Kenyatta University of Agriculture and Technology.
Mikalef, P., Krogstie, J., Pappas, I. O. Pavlou, P. (2020). Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities. Information & Management, 57(103169), 1-15.
Narkhede, B. E. (2017). Advance manufacturing strategy and firm performance: An empirical study in a developing environment of small- and medium-sized firms. Benchmarking: An International Journal, 24(1), 62-101. https://doi.org/10.1108/BIJ-05-2015-0053
Nusair, K., Al-Azri, H.I., Alfarhan, U.F., Al-Muharrami, S. & Nikhashemi, S.R. (2022). Strategic capabilities and firm performance in Omani manufacturing and service SMEs. Journal of Entrepreneurship in Emerging Economies, 14(6), 1118-1142. https://doi.org/10.1108/JEEE-12-2020-0460
Okeyo, W. (2017). Student Unrest in Public Universities in Kenya: The Nexus between Principles of Governance and Student Leadership. European Scientific Journal November edition, 13(31), 1857 – 7881
Rehman, N., Nor, M. N. M., Taha, A. Z., &Saad, M. (2021). Impact of information technology capabilities on firm performance: understanding the mediating role of corporate entrepreneurship in SMEs. Academy of Entrepreneurship Journal, 24(3), 1-19.
Reichert, F. M. & Zawislak, P. A. (2014). Technological Capability and Firm Performance. Journal of Technology Management & Innovation, 9(4), 20-35.
Salunke, S., Weerawardena, J., & McColl-Kennedy, J. R. (2018). The central role of knowledge integration capability in service innovation-based competitive strategy. Industrial Marketing Management. doi:10.1016/j.indmarman.2018.07.0
Solano, A. A., Herrero, C. Á. &Collado, A. J. (2018). Effect of market orientation, network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs). International Business Review. doi:10.1016/j.ibusrev.2018.04.004
Taaliu, S.T. (2017) Corruption in Schools and Universities in Kenya. Open Journal of Social Sciences, 5, 227- 231. Available at https://doi.org/10.4236/jss.2017.54020.
Takahashi, A. R. W., Bulgacov, S., Semprebon, E. & Giacomini, M. M. (2021). Dynamic capabilities, Marketing Capability and Organizational Performance. Brazil Business Review, 14(5), 467-478
Valero, A. & Van Reenen, J. (2018). The Economic Impact of Universities: Evidence from Across the Globe. Economics of Education Review, S0272775718300414. doi:10.1016/j.econedurev.2018.09.001
Weia, S. &Linb, L. (2021). Long-term Effects of Research and Development on Firm Performance
- Taking Taiwan as the Example (2001-2017). Revista Argentina de ClínicaPsicológica, 30(1), 247-258. DOI: 10.24205/03276716.2020.2021
Wycliffe, W. (2013). Quest for Quality and Relevant Higher Education, Training and Learning in Kenya: an Overview. Education Journal, 2(2), 36-49. doi: 10.11648/j.edu.20130202.13
Yang, M., Al-Mamun, A. &Salameh, A. A. (2023). Leadership, capability and performance: A study among private higher education institutions in Indonesia. https://doi.org/10.1016/j.heliyon.2023.e13026
Zehir, C., Findikli, M. A. &Celtekligil, K. (2018). Resource dependence theory, firm performance and producers-suppliers relationships. Joint Conference: 14th ISMC and 8th ICLTIBM-2018. The European Proceedings of Social &Behavioural Sciences, 161-172.
DOI: http://dx.doi.org/10.61426/sjbcm.v10i4.2763
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.