DYNAMIC CAPABILITIES AND PERFORMANCE OF SELECTED COMMERCIAL BANKS IN NAIROBI CITY COUNTY, KENYA
DYNAMIC CAPABILITIES AND PERFORMANCE OF SELECTED COMMERCIAL BANKS IN NAIROBI CITY COUNTY, KENYA
Zamzam Mohamed Ali - Business Administration Department, Kenyatta University, Kenya
Dr Peter Philip Wambua - Business Administration Department, Kenyatta University, Kenya
ABSTRACT
Performance of an organization includes analysis of company performance in reference to its goals and objectives. The essential components of organizational performance are dependent on clear vision statement and how the management is able to charismatically involve all stakeholders in its application. Dynamic capabilities are significant for a business enterprises to attain competitive edge that is sustainable and make sure that the performance of the company is superior. The main purpose was to ascertain the influence of dynamic capabilities and performance of commercial banks in Nairobi City County, Kenya. Specifically, the study sought to establish the influence of innovative capability, technical, and learning culture capability on performance of selected commercial banks. Theories used are; dynamic capability’s theory, balanced score card theory, resource-based view theory and frim learning theory. To achieve this objective, descriptive survey was adopted. Targeted population was 3 commercial banks that are located in Nairobi County. Target population composed of 236 management level employees of the selected banks. Selected sample was 149 respondents. In order to get the required sample size, stratified random sampling technique was utilized. Data collection was use of questionnaires which was administered individually to each respondent. Pretesting of questionnaire was done to ensure reliability and validity. SPSS (version, 23) was utilized to analyse the collected data. Quantitative data collected was scrutinized by use of descriptive statistics and demonstration of findings was in tables and figures. Multiple regressions were computed to find out the influence of dynamic capabilities on performance. It was found that the association of innovations capability and performance commercial banks is significantly positive; Technical capability and performance is significantly positive; link between learning culture capability and performance is significantly positive. The study therefore suggests management of the bank to embrace various forms of innovations including, product, service, market, and process innovations. It is also suggested that banks take a more proactive approach to producing products and services that add value to their clients. Banks must also empower their frontline executives to become more customer-centric, as this provides an opportunity for customers to provide input into innovative decision-making. Bank should improve its technical knowledge capacity through knowledge management, talents and skills acquisition, knowledge creation, knowledge gathering, knowledge diffusion and knowledge use. The study also recommends the need for policy intervention to improve operators knowledge and skills. Bank should embrace practices that improve customer service and satisfaction such as reduced costs, multiple products provisions, high levels of customer support, and effective employees.
