EFFECTS OF DYNAMIC CAPABILITIES ON STRATEGY IMPLEMENTATION IN THE DAIRY INDUSTRY IN KENYA
Ahmed Abdikarim Hassan - Ph.D. student, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The increasingly volatile environment has entailed recent popularity of the notion of dynamic capabilities. The dairy industry has been undergoing remarkable changes across hundreds of industries, attributable to technological breakthroughs, trade liberalization, industry deregulation, escalating competition, and rising catastrophes. This market trend challenges and alters established rules for business competition and poses a higher requirement for organizational adaptation. For many smallholders, adoption of dairy cattle is a promising way to increase their income. Yet, the entry cost and production risks are high. Farmers in areas highly infected with tick-borne diseases may consider dairying a risky enterprise, even if prevention measures and treatments are available. Further, marketing is an important problem in some areas since the beginning of the 90s when delayed milk payments by the Kenyan Cooperatives Creameries started. The purpose of this study was to explore the effects of dynamic capabilities on strategy implementation in the dairy industry in Kenya.The study adopted an exploratory approach using a descriptive survey design. The target population under study was 1064 management staff in the dairy industry in Kenya including dairy processors. At least 282 respondents was randomly selected. Primary data was collected using questionnaires. The quantitative data in this research was analyzed by descriptive statistics using statistical package for social sciences (SPPS) version 21. Correlation analysis was performed to determine if any variables are correlated. In addition, a multivariate regression model was applied to determine the relative importance of each of the four variables with respect to strategy implementation. Inferential statistics such non parametric test which include analysis of variance (ANOVA) was used to test the significance of the overall model at 95% level of significance. All necessary diagnostic tests were performed. Data was presented in tables, charts and graphs. The results obtained from the correlation model showed a strong positive correlation between knowledge management for future positioning and strategy implementation. The study noted that knowledge management in an organization helped in promoting standard, repeatable processes and procedures, reusing ideas, documents, and expertise, helped to avoiding redundant effort. The regression model also revealed that a unit increase in organisational organizational transformation initiatives would enhance strategy implementation process. Further it was noted that the management of dairy industry in Kenya kept the following aspects of OT up to date :measures quality program, revised compensation and training: customer focused approach and continuous improvement. Results obtained from correlation model between discontinuous innovation discontinuous innovation and strategy implementation showed a weak negative correlation between the two variables. The study also noted that that coordination of managerial processes for future positioning affects strategy implementation in the dairy industry in Kenya to a great extent. The research further noted that coordination helps to improve the efficiency of operations by avoiding overlapping efforts and duplication of work, coordination helps to promoting the efficiency of operations. In view of improving strategy implementation in the dairy industry in Kenya, the study recommends that the management of dairy industry in Kenya should implement knowledge management systems as this was associated four to be a key driver towards successful strategy implementation. The top management of dairy industry in Kenya should work to ensure that that internal flow of activities is effective as the quality of coordination was found to be a crucial factor in the survival of an organisation. The management of dairy industry should promote discontinuous innovations in this changing environment while maintaining the survival ability by managing incremental innovations.
