Dynamic Capabilities: Do They Really Matter in Strategy Implementation? Evidence from Small and Medium Manufacturing Firms in Kenya

Abstract

Scholars believe that implementation of a strong strategy is a panacea to superior business firm’s performance. Thisstudy tested the influence of five dynamic capability drivers on the performance of manufacturing firms. TheDynamic Capability’s View of the firm provided a useful framework where these drivers were analyzed using asample of 115 firms. Results from four drivers confirm that dynamic capabilities positively influences firm’sperformance. These drivers are technology, human resource, leadership style and structure. Strategic direction onlyinfluences other drivers but not performance. When all the drivers are combined, only structure and technologymatters in influencing firm’s performance. This study recommends use of strong dynamic capabilities to drive thestrategy implementation efforts to success.