Empirical Analysis of the Effect of Operational Capability on Performance of Food Processing Firms in Nairobi City County, Kenya

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 5

Year of Publication : 2019

Authors : Justus M. Kyengo , Stephen M.A. Muathe , Godfrey M. Kinyua

10.14445/23939125/IJEMS-V6I5P117

How to Cite?

Justus M. Kyengo , Stephen M.A. Muathe , Godfrey M. Kinyua, "Empirical Analysis of the Effect of Operational Capability on Performance of Food Processing Firms in Nairobi City County, Kenya," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 5, pp. 113-124, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I5P117

Abstract:

Research Summary: This study sought to investigate the effect of operational capability on performance. The target population of the study was 102 registered Food Processing Firms. The study was anchored on resource based view theory. The researcher adopted positivism research philosophy and a mix of explanatory and descriptive research designs. Multistage probability sampling was used to select 155 respondents. Primary data was collected using self-administered structured questionnaires. Descriptive statistics were used to summarize the characteristics of the sample while simple linear regression analysis was used to test the research hypotheses. The study established that operational capability has a positive effect on performance. The findings of the study

Keywords:

Competitive Advantage, Food Processing Firm, Strategic Assets, Operational Capability and Organizational Performance underscore the significance of operational capabilities in the value propositions development process and ultimate realization of enhance organizational performance.

References:

[1] Ahmed, M. U., Kristal, M. M. & Pagell, M.(2014). Impact of Operational and Marketing Capabilities on Firm Performance: Evidence from Economic Growth and Downturns. Int. J. Production Economics, 154, 59-71.
[2] Anderse´n, J. (2011), Strategic resources and firm performance, Management Decision, 49 (1): 87-98.
[3] Arend, R.J. & Levesque, M. (2010). Is the resource -based view a practical organizational theory? Organization Science, 21(4): 913 -930.
[4] Arend, R.J. & Levesque, M. (2010). Is the resource-based view a practical organizational theory? Organization Science, 21(4): 913-30
[5] Barney ,J., Wright, M. & Ketchen, D. J. (2001). The RBV of a firm; Ten years after 1991, Journal of Management 27 (6):.625 -641.
[6] Barney, J. B. (2011). Gaining and sustaining competitive advantage (4th ed.). New Jersey: Upper Saddle
[7] Cooper, D.R., & Schindler, P.S. (2010). Business research methods. (11th ed.). New Delhi: McGraw Hill.
[8] Costa, A. L., Cool, K. & Dierickx , I. (2013). Competitive implication of deployment of unique resources. Strategic Management Journal, 34: 445-463
[9] Gavrea, C., Ilieş, L. & Stegerean, R. (2011). Determinants of Organizational Performance: the Case of Romania. Management and Marketing Challenges for the Knowledge Society, 6(2), 285-300.
[10] Grahovac, J. & Miller, D.J. (2009). Competitive advantage and performance: the impact of value creation and costliness of imitation. Strategic Management Journal 30(11): 1192–1212
[11] Loice, K., Bonuke, R. & Kibet, Y. (2017). Effect Of Supply Chain Operational Capabilities on the Relationship between Absorptive Capacities and Performance of Manufacturing Firms in Nairobi County. International Journal of Economics, Commerce and Management, V(12), 145-159.
[12] Morheney, T.J & Pandian, R.J. (1992). The Resource Based View within the conversation of strategic management: Strategic Management Journal 13( 5): 363 – 380.
[13] Mugenda, O. & Mugenda, A. (2003). Research methods, quantitative and qualitative approaches, Nairobi: Acts.
[14] Ortega, M. J. R., (2010). Competitive strategies and firm performance: Technological capabilities' moderating roles. Journal of Business Research, 63:1273 –1281.
[15] Rai, A. & Tang, X., (2011). Research journal; The moderating Effects of supplier port folio characteristics on the competitive performance impact of supplier –facing process.
[16] Spender. J.C., & Grant, R.M., (1996). Knowledge and the firm: Overview. A Strategic Management Journal, 17(52): 5 - 9.
[17] Wade, M & Hulland, J., (2004). The Resource Based view and information systems Research; Review extension and suggestions for future Research . Journal vol. 28.
[18] Xiaobu, S., Shuai, D. & Wei, P. (2010). Mediating role of competitive advantage on performance. Strategic Management Journal, 23: 90-115