The Relationship Between Dynamic Capability and Performance in Shipping Industry in Kenya

Abstract

Dynamic capabilities help units extend, modify, and reconfigure their existing operational capabilities into new ones that better match their changing environment. Global competition, technological advances and changing needs of consumers, competitive paradigms are driving firms to compete, simultaneously along different dimensions such as design and development of products, manufacturing, and distribution, communicating and marketing. The objective of this study was to determine the relationship between dynamic capability and performance in the shipping industry in Kenya. The specific objective was to determine the organizational capabilities that affect performance and the effect of capability dynamism on performance in the shipping industry. The study used two theories namely Resource based and Knowledge based to strengthen its case on the relationship between dynamic capability and performance. The target population was 30 registered shipping companies operating in Mombasa Kenya. The study adopted a cross sectional survey for its research design. A modified Likert scale questionnaire was developed divided into three parts. A pilot study was carried out to refine the instrument. The quality and consistency of the survey was further assessed using Cronbach's alpha. The overall Cronbach's alpha for the four categories which was 0.752. Data analysis was performed on a computer using Statistical Package for Social Science (SPSS Version 22) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression, correlation and the information generated was presented in form of graphs, charts and tables.Out of the 30 questionnaire administered, 22 were returned making a response rate of 73.33%.There is a very strong positive correlation between organizational capability dynamism with performance as demonstrated by the Karl Pearson correlation model of 0.768 and 0.880. The study concluded that there is a positive relationship between dynamism and performance. The study recommended that shipping companies should invest more in research and development to deal with the ever changing external environment. This is because all the shipping lines operate in more than one country as per the research finding which pose different and ever changing environmental challenge.