ISSN: 2520-4750 (Online), 2521-3040 (Print)

Influence of Organization Capabilities on the Performance of Commercial State Corporations in Kenya

 Author (s)

Agaba Sedrick Echongu & Dr. Elias Njagi

Abstract

The commercial state corporations in Kenya have faced a turbulent period that has seen previous blue-chip companies such as Mumias Sugar, Kenya Airways, Telkom Kenya, and National Bank falter in terms of their performance. Despite the restructuring of state parastatals and the continuous government bailout, there has been little improvement in the performance of state-owned corporations. The available literature has focussed on their performance from multidimensional constructs. However, there is scanty evidence on how organization capabilities affect the performance of commercial state corporations. The current study sought to establish the effect of innovative capabilities and resource capabilities. The research was anchored on the dynamic capabilities’ theory and the theory of the firm. The research employed a descriptive cross-sectional research design with the unit of analysis being the 50 commercial state corporations in Kenya. The study used a census survey of 150 respondents. Data was collected by the use of semi-structured questionnaires, employing a mix of drop and pick methods as well as google forms to collect the data. The collected research data were analyzed using descriptive, inferential statistics, and correlational statistics. The results were presented using charts and tables. Findings revealed the research was able to obtain a 71% response rate, with 29% of the sample respondents not being able to respond.  Correlation tests established there is a positive association between innovative capabilities, resource capabilities and performance of commercial state corporations. The study established that there is a positive and significant effect of organization capabilities on state corporations’ performance in Kenya. Specifically, the study revealed that innovative capabilities, resource capabilities, have a positive and statistically significant influence on the performance of commercial state corporations. The study recommended that organizations would also institute compensations and rewards to encourage innovative ideas from employees in different departments. The study recommended that the management ensures that they have adequate qualified personnel to improve strategy execution within their respective firms. The study also recommends that coordination functions be centralized to ensure timely detection of unexpected events.

Keywords: Organization capability, Innovative Capabilities, Resource Capabilities, Organization Performance, State Corporations.

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Title:Influence of Organization Capabilities on the Performance of Commercial State Corporations in Kenya
Author:Agaba Sedrick Echongu & Dr. Elias Njagi
Journal Name:International Journal of Science and Business
Website:ijsab.com
ISSN:ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI:https://doi.org/10.5281/zenodo.7407623
Media:Online
Volume:15
Issue:1
Issue publication (Year):2022
Acceptance Date:30/11/2022
Date of Publication:07/12/2022
PDF URL:https://ijsab.com/wp-content/uploads/2016.pdf
Free download:Available
Page:167-178
First Page:167
Last Page:178
Paper Type:Project Paper
Current Status:Published

 

Cite This Article:

Agaba Sedrick Echongu & Dr. Elias Njagi (2022). Influence of Organization Capabilities on the Performance of Commercial State Corporations in Kenya. International Journal of Science and Business, 15(1), 167-178. doi: https://doi.org/ 10.5281/zenodo.7407623

Retrieved from https://ijsab.com/wp-content/uploads/2016.pdf

 

About Author (s)

Agaba Sedrick Echongu, Master of Business Administration, Kenyatta University.

  Dr. Elias Njagi, Lecturer, Department of Business Administration, Kenyatta University.

 

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DOI: https://doi.org/10.5281/zenodo.7407623

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