DYNAMIC CAPABILITIES AND FIRM PERFORMANCE IN COMMERCIAL BANKS IN MOMBASA COUNTY, KENYA

SUSAN MERAB ADEDE, TITUS M. KISING’U, PhD

Abstract


This study examined the influence of dynamic capabilities on performance of commercial banks in Mombasa County, Kenya. Specifically, the study sought to examine the influence of dynamic managerial capability and dynamic marketing capability on performance of commercial banks in Mombasa County, Kenya. The theoretical framework was informed by the resource-based theory, dynamic capability theory and dynamic managerial capability theory. The study employed the descriptive cross-sectional survey research design to test non-causal relationships between the study variables. The target population consisted of the 98 branch managers and 98 operations managers of the 39 commercial banks in Mombasa County, Kenya. The proportionate stratified random sampling technique was utilized to select a sample size of 66 branch managers and 66 operations managers of the 39 commercial banks in Mombasa County, Kenya. A pilot study was conducted to ascertain the validity and reliability of the constructed survey questionnaire. A structured self-administered survey questionnaire was used as the means of collecting primary data. The study utilized a cross-sectional survey-based approach for the data collection. The collected data was processed and entered into the statistical package for social sciences (SPSS) version 26 to create a data sheet used for analysis. Data analysis involved the use of descriptive statistics and inferential statistics. The Pearson's correlation results indicated that dynamic managerial capability and dynamic marketing capability had positive and significant relationship with the performance of commercial banks in Mombasa County, Kenya. The regression results indicated that dynamic managerial capability and dynamic marketing capability had positive and significant influence on the performance of commercial banks in Mombasa County, Kenya. The study recommends that the managers and practitioners within the banking industry should implement the dynamic capabilities to foster the performance of commercial banks. The policymakers within the banking industry should initiate policy review to encourage bank managers to implement the dynamic capabilities to foster the performance of commercial banks. The study recommends intriguing areas for further research. Future research should examine the influence of dynamic capabilities on firm performance in other sectors or contexts.    

Key words: Dynamic Capabilities, Dynamic Marketing, Dynamic Managerial, Firm Performance, Kenya

CITATION: Adede, S. M., & Kising'u, T. M. (2024). Dynamic Capabilities and Firm Performance in Commercial Banks in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 11 (4), 619 – 640. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3108


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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3108

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