SENSING CAPABILITIES AND ORGANIZATIONAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN LAMU COUNTY, KENYA
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Abstract
The study’s objective was to determine the influence of sensing capability on organizational performance, to assess the influence of learning capability on organizational performance of small and medium enterprises in Lamu County, Kenya. The study’s theoretical framework included review of dynamic capabilities theory. This study adopted descriptive survey design since it aids in identifying characteristics in the target population. The study targeted 335 licensed and operational small and medium enterprises based in Lamu County as at 31st December 2023, from which a sample of 124 was derived. Proportionate stratified random sampling technique was used to select respondents and self-administered questionnaires based on a five-point Likert type scale were distributed through drop and pick-up method for collection of primary data. Pilot testing was carried out and the research instrument was found to have data that were normally distributed, Cronbach alpha scores were above the recommended value .70 hence all variables were reliable, and the validity scores indicated the data was sufficient and correlated to measure the individual variables. The study established that sensing capability had a significant influence on organizational performance of small and medium enterprises. The study recommended that small and medium enterprises must embrace dynamic capabilities for strong interaction response capacity to attract and maintain customers and also to have a well-established database to serve customers better.
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References
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Basu, S., Munjal, S., Budhwar, P., & Misra, P. (2022). Entrepreneurial adaptation in emerging markets: Strategic entrepreneurial choices, adaptive capabilities and firm performance. British Journal of Management, 33 (4), 1864 - 1886.
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Ng'ang'a, A. W., Kangu, M., & Ndegwa, J. (2024). Sensing Capabilities and Performance of Supermarkets in Kenya. The University Journal: A Doctoral Association of Eastern Africa (DAEA) Publication , 6 (1), 23 - 33.
Ngeche, J., & Kaluyu, V. (2023). Organizational agility capabilities and sustainable competitive advantage in private multi-Practice hospitals in Kenya. Unpublished University of Nairobi Thesis, Retrieved from: https://wwwuonbi.ac.ke.
Sangwa, S., & Muvunyi, J. B. (2021). The influence of dynamic capabilities on the performance of the small and medium enterprises in the manufacturing sector in Kenya. Science and Education , 2 (8), 580 - 601.
Troise, C., Corvelloe, V., Ghobadian, A., & O'Regan, N. (2022). How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era. Technological Forecasting and Social Change, 174 (6) 852 - 896.
Varadarajan, R. (2021). Customer information resources advantage, marketing strategy and business performance: A market resource based view. Industrial Marketing Management, 89, 89 - 97.
Yahya, I. S., Senin, A. B., Yusuf, M. M., Gumel, A. U., & Gwigwinyue, A. A. (2022). Effect of SMEs Businesses Falling in a Global Perspective with Development of the Business Model as a Tool for Overcoming the SMEs Business Challenges. Journal of Management Theory and Practice, 3 (2), 90 - 97.
Zhu, M., & Gao, H. (2021). The antecedents of supply chain agility and their effect on business performance: an organizational strategy perspective. Operations Management Research, 14, 166 - 176.
Zia, U., Zhang, J., & Alam, S. (2023). Role of tacit knowledge management process and innovation capability for sti,ulating organizational performance: empirical analysis. Journal of Business and Strategic Management, 12 (3) 523 - 545.
Aduwo, E., & Deya, J. (2022). Dynamic capabilities and competitive advantage ofcommercial banks in Kenya. International Academic Journl of Human Resource and Business Administration, 4 (1) 408 - 429.
Aghimien, D., Aigbavboa, C., & Matabane, K. (2023). Dynamic capabilities for construction organizations in the 4th industrial revolution era. International Journal of construction , 23 (5), 855 - 862.
Akpan, E. E., Johnny, E., & Sylva, W. (2022). Dynamic capabilities and organizational resilience of manufacturing firms in Nigeria. International Journal of Business Management, 26 (1), 48 - 64.
Alam, A. (2022). Mapping a Sustainable future through conceptualiztion of transformative learning framework, education for sustainable development, critical reflection and responsible citizenship: an exploration of pedagogies for 21st Century Learning. ECS Transactions, 107 (1) 9827.
Alshebami, A. S. (2023). Green innovation, self-efficacy, entrepreneurial orientation and economic performance: Interactions among Saudi small enterprises. International Journal of Business and Management, 15 (3), 1961 - 1973.
Alvarez, S. A., & Porac, J. (2021). Imagination, indeterminacy and managerial choice at the limit of knowledge. Academy of Management Review, 45 (4), 735 - 744.
Basu, S., Munjal, S., Budhwar, P., & Misra, P. (2022). Entrepreneurial adaptation in emerging markets: Strategic entrepreneurial choices, adaptive capabilities and firm performance. British Journal of Management, 33 (4), 1864 - 1886.
Bertram, C., & Mxenge, N. (2024). Performativity, managerial professionalism and the purpose of professional development: A South African case study . Journal of Education Policy, 38 (4) 607 - 624.
Bianchi, C. (2022). COVID-19 and service innovation strategies of tourism and hospitality SMEs in an emerging Country. International Journal of Emerging Markets, 12 (4) 109 - 121.
Bryman, A., & Bell, E. (2022). Business Research Methods. London: Oxford University Press.
Cennamo, C. (2022). Competing in digital markets: A platform-based perspective. Academy of Management Perspective, 35 (2), 265 - 291.
Chemutai, P., Ogollah, K., Bolo, Z. A., & Owino, J. (2022). Dynamic capabilities, firm innovation and competitive advantage of companies listed at Nairobi Securities Exchange. International Journal of Business Management, 12 (10) 1 - 9.
Dias, A. L., & Lages, L. F. (2021). Measuring market-sensing capabilities for new product development success. Journal of Small Business and Enterprise Development, 28 (7), 1012 - 1034.
Gatama, N. N., & Kavindah, L. (2024). Strategic Capabilities and Performance of Kenya Revenue Authority, Kenya. International Journal of Business Management, Entrepreneurship and Innovation, 4 (1), 36 - 52.
Gemici, E., & Zehir, C. (2023). High-performance work systems, learning orientation and innovativeness: the antecedent role of environmental turbulence. European Journal of Innovation Management, 26 (2), 475 - 503.
Goh, K., Elliot, W., & Quon, D. (2024). Organisational learning capabilities and how to measure it: The five organizational learning survey categories. London: Oxford University Press.
Harvey, L. (2023). Critical Social Research: Quality in Higher Education. Washington DC:
Sage Publishers.
Huikkola, T., Kohtamaki, M., & Ylimaki, J. (2022). Becoming a smart solution provider: Reconfiguring a product manufacturer's strategic capabilities and proceses to facilitate business model innovation. Technovation, 118 (3) 102 - 119.
Illumudeen, A. (2022). Leveraging IT-enabled dynanmic capabilities to shape business process agility and firm innovative capability: moderating role of turbulent environment. Review of Managerial Science, 16 (8), 2341 - 2379.
Kareem, A. M., & Alameer, A. A. (2023). The Impact of Dynamic Capabilities on Organizational Effectiveness. Journal of Management, 36 (1), 256 – 280.
Kimiti, P., & Kilika, J. M. (2022). Organizational resources, industry velocity, attention focus and firm's performance: A review of literature. International Journal of Business and Management, 45 (8) 753 - 769.
Litvinenko, V. S. (2021). Digital economy as a factor in the technological development of the mineral sector. Natural Resources Research, 29 (9), 1521 - 1541.
Maziriri, E. T. (2022). Green packaging and green advertising as precusors of competitive advantage and business performance among manufacturing small and medium enterprises in South Africa. Cogent Business and Management, 7 (1) 178 - 189.
Meece, J. L. (2023). The role of motivation in self-regulated learning. Sydney: Routledge.
Menganyi, G. M., Abayo, R., & Muraguri, C. (2023). Influence of strategic capabilities on competitive advantage of microfinance institutions in Nairobi County, Kenya. International Academic Journal of Human Resource and Business Administration, 4
(2) 327 - 346.
Mikalef, P., Conboy, K., & Krogstie, J. (2021). Artificial intelligence as an enabler of B2B marketing: A dynanmic capabilities micro-foundations approach. Industrial Marketing Management, 98, 80 - 92.
Mwangi, S. B. (2023). Handbook for Research Methodology. London: John Wiley & Sons Publisher.
Ng'ang'a, A. W., Kangu, M., & Ndegwa, J. (2024). Sensing Capabilities and Performance of Supermarkets in Kenya. The University Journal: A Doctoral Association of Eastern Africa (DAEA) Publication , 6 (1), 23 - 33.
Ngeche, J., & Kaluyu, V. (2023). Organizational agility capabilities and sustainable competitive advantage in private multi-Practice hospitals in Kenya. Unpublished University of Nairobi Thesis, Retrieved from: https://wwwuonbi.ac.ke.
Sangwa, S., & Muvunyi, J. B. (2021). The influence of dynamic capabilities on the performance of the small and medium enterprises in the manufacturing sector in Kenya. Science and Education , 2 (8), 580 - 601.
Troise, C., Corvelloe, V., Ghobadian, A., & O'Regan, N. (2022). How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era. Technological Forecasting and Social Change, 174 (6) 852 - 896.
Varadarajan, R. (2021). Customer information resources advantage, marketing strategy and business performance: A market resource based view. Industrial Marketing Management, 89, 89 - 97.
Yahya, I. S., Senin, A. B., Yusuf, M. M., Gumel, A. U., & Gwigwinyue, A. A. (2022). Effect of SMEs Businesses Falling in a Global Perspective with Development of the Business Model as a Tool for Overcoming the SMEs Business Challenges. Journal of Management Theory and Practice, 3 (2), 90 - 97.
Zhu, M., & Gao, H. (2021). The antecedents of supply chain agility and their effect on business performance: an organizational strategy perspective. Operations Management Research, 14, 166 - 176.
Zia, U., Zhang, J., & Alam, S. (2023). Role of tacit knowledge management process and innovation capability for sti,ulating organizational performance: empirical analysis. Journal of Business and Strategic Management, 12 (3) 523 - 545.