INFLUENCE OF DYNAMIC CAPABILITIES ON FIRM PERFORMANCE IN THE MANUFACTURING SECTOR IN KENYA. A CASE OF KETEPA LIMITED

This study investigated the effect of dynamic capabilities on manufacturing sector performance; a case of Ketepa Ltd. This research adopted explanatory design and targeted a total of 104 respondents comprising of all level managerial employees and supervisors at Ketepa Tea Limited who were involved in strategy development and implementation at the corporate, business and operational level.  Census method was adopted since the target population is small. The study utilized structured questionnaires to collect primary data from the field and the data collection instruments was piloted in selected tea processing firms in Nandi County. Data analysis was done by use of descriptive and inferential statistics computed by Statistical Package for Social Sciences (SPSS 23). Descriptive analysis summarized data into meaningful forms while inferential analysis was used to show variable relationships. 91 out of the sampled 104 respondents returned dully filled questionnaires. Both descriptive and inferential statistics showed that all conceptualized independent variables significantly influenced performance of Ketepa Tea Ltd. That is; from the values of unstandardized regression coefficients with standard errors in parenthesis, both the independent variables; alliance management and dynamic management were significant predictors of firm performance (dependent variable). The study concluded that, dynamic management capability significantly influences manufacturing firm performance, thus a management that efficiently respondents to emerging issues and has a clear understanding of where the company is going can save a firm’s performance in turbulent times.. The study recommended that f irst, managers of tea processing firms should continuously engage in systematic formulation of long term strategy and timely response to competitive strategic moves which can impact positively on the performance of a manufacturing firm. Further, management of tea processing firms should be alert to timely respondent to emerging issues in tea processing sector and remain steady fast in the clear understanding of where the company is going so as to save the firm’s performance in turbulent times. Key Words : Alliance Management, Dynamic Management, Performance of Manufacturing Sector CITATION: Tonui, C. K., & Otinga, H. N. (2019). Kimani, M. M., &  Otinga, H. N. (2019). Influence of   dynamic capabilities on firm performance in the manufacturing sector in Kenya. A case of Ketepa Limited. The Strategic Journal of Business & Change Management, 6 (1), 719 – 732.