International Journal of Economics, Commerce and Management United Kingdom
Vol. V, Issue 11, November 2017
http://ijecm.co.uk/
ISSN 2348 0386
MODERATING ROLE OF TRANSFORMATIONAL LEADERSHIP BEHAVIOUR ON THE RELATIONSHIP BETWEEN DYNAMIC CAPABILITIES AND PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI COUNTY, KENYA
Thomas O. Nyachanchu Moi University, Nairobi, Kenya
[email protected] Ronald Bonuke Dept. of Marketing and Logistics, Moi University, Kenya
[email protected]
Joel Chepkwony Dept. of Marketing and Logistics, Moi University, Kenya
[email protected]
Abstract The advent of globalization is forcing firms in the manufacturing sector to deploy dynamic capabilities so as sustain competitive advantage. Strategic choices and decisions made on when, where and how to deploy dynamic capabilities; depend on the transformational leadership behaviour of the top leadership, the Chief Executive Officers (CEOs). However no empirical evidence exists to indicate the role of transformational leadership behaviour on the relationship between dynamic capabilities and firm performance. The study therefore set to examine this moderating role, using explanatory research design in a cross-sectional survey; guided by the Resource-Based View theory. Primary data was obtained from 271 out of 369 firms sampled from a population of 1,496 manufacturing firms, using a structured questionnaire instrument through drop and pick. Reliability and validity tests were carried out on the research instrument and study measures. SPSS software was used to analyze and interpret the data. Regression analysis results, which were used to test hypotheses revealed, among other
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aspects, that the interaction of two of the dimensions of dynamic capabilities, namely: - sensing capabilities (B= -0.061; P
