Initial Conditions, Dynamic Capabilities and Performance.

##plugins.themes.academic_pro.article.main##

David Kiiru, J. K. Mwangi

Abstract

Every organization strives to achieve the best market position, attain a competitive edge, maintain high performance and end up being a market leader. However many firms start on the right foot but as the time progress some fall or fail to achieve the same. This study looked at the role of initial condition in attaining competitive advantage as well as the overall performance. The research was a census of the commercial banks sector and the findings revealed that the initial conditions do not influence the performance though contributes gaining competitive advantage. The study looked at the moderating role of dynamic capabilities on the relationship between initial conditions and performance. The findings show initial conditions effect on performance diminishes with time. However dynamic capabilities are found to play moderating role in the relationship between initial conditions and performance of commercial banks in Kenya. The study recommends that all banks staff be educated on the various categories of dynamic capabilities to enable the utilize them to improve their performance and well as gaining competitive advantage.
Keywords: Performance, Initial Conditions, Dynamic Capabilities

##plugins.themes.academic_pro.article.details##

How to Cite
Initial Conditions, Dynamic Capabilities and Performance. (2022). African Multidisciplinary Journal of Research, 2(1). https://doi.org/10.71064/spu.amjr.2.1.27

How to Cite

Initial Conditions, Dynamic Capabilities and Performance. (2022). African Multidisciplinary Journal of Research, 2(1). https://doi.org/10.71064/spu.amjr.2.1.27

References

  1. Ambrosini, V. & Bowman, C. (2009). What are Dynamic Capabilities and are they a useful Construct in Strategic Management? International Journal of Management Reviews, 11(1), 29-49. DOI: https://doi.org/10.1111/j.1468-2370.2008.00251.x
  2. Askari, H. (1991). Third World Debt and Financial Innovation: The Experiences of Chile and Mexico. Paris, Development Centre Studies.
  3. Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. DOI: https://doi.org/10.1177/014920639101700108
  4. Journal of Management. 17 (1), 99-120.
  5. Barreto, I. (2010). Dynamic Capabilities: A review of Past Research and an Agenda for the Future. Journal of Management, 36, 256-280. DOI: https://doi.org/10.1177/0149206309350776
  6. Bhatt, V. V. (1989). Financial Innovation and Credit Market Development.World Bank Working Papers, No 52. Washington, World Bank.
  7. Carlucci, D. (2010). Evaluating and Selecting Key Performance Indicators: An ANP-based Model. Measuring Business Excellence, 14(2), 66 – 76. DOI: https://doi.org/10.1108/13683041011047876
  8. Catherine, D. (2002). Practical Research Methods, New Delhi, UBS Publishers’ distributors.
  9. Central Bank of Kenya, (2012) Bank Supervision Annual Report 2011
  10. Central Bank of Kenya, (2011) Bank Supervision Annual Report 2010
  11. Central Bank of Kenya, (2010) Bank Supervision Annual Report 2009
  12. Central Bank of Kenya, (2009) Bank Supervision Annual Report 2008
  13. Central Bank of Kenya, (2008) Bank Supervision Annual Report 2007
  14. Danneels, E. (2010). Trying to Become a Different Type of Company: Dynamic Capability at Smith Corona.Strategic Management Journal, 32, 1-31. DOI: https://doi.org/10.1002/smj.863
  15. Defee ,C. C & Fugate, B. S, (2010). Changing Perspective of Capabilities in the Dynamic Supply Chain Era, The International Journal of Logistics Management, 21(2). DOI: https://doi.org/10.1108/09574091011071915
  16. DeSarbo, W. S, Benedetto, C. A.& Michael Song, (2007). A Heterogeneous Resource Based View for Exploring Relationships Between Firm Performance and Capabilities. Journal of Modelling in Management, 2 (2), 103 – 130 DOI: https://doi.org/10.1108/17465660710763407
  17. Easterby-Smith, M. &Prieto, I. M. (2008). Dynamic Capabilities and Knowledge Management: An Integrative Role for Learning? British Journal of Management, 19, 235-249. DOI: https://doi.org/10.1111/j.1467-8551.2007.00543.x
  18. Field, A. P. (2009). Discovering Statistics Using SPSS (and Sex and Drugs and Rock’ n’ Roll) 3ed. London: Sage.
  19. Gathungu, J. M & Mwangi, J. K. (2012).Dynamic Capabilities, Talent Development and Firm Performance.DBA Africa Management Review journal, 2(3), 83- 100.
  20. Ghemawat, P. (1991). Commitment: The Dynamics of Strategy. New York: Free Press.
  21. Gilbert, C. (2005). ‘Unbundling the Structure of Inertia: Resource Versus Routine Rigidity’, Academy of Management Journal, 48, pp. 741–763. DOI: https://doi.org/10.5465/amj.2005.18803920
  22. Grant, R. M. (1996). Toward a Knowledge-Based Theory of the Firm.Strategic Management Journal. 14(8), 593-605. DOI: https://doi.org/10.1002/smj.4250171110
  23. Hair, J. F., Black, W. C, Babin, B. J & Anderson, R. E. (2010).Multivariate Data Analysis 8th edit, New Jersey, Prentice Hall.
  24. Hair, J. F., Black, W. C, Babin, B. J & Anderson, R. E. (2009).Multivariate Data Analysis 7th edit, New Jersey, Prentice Hall.
  25. Jiao, H., Wei, J. & Cui, Y. (2010). An Empirical Study on Paths to Develop Dynamic Capabilities: From the Perspectives of Entrepreneurial Orientation and Organizational Learning. Frontiers of Business Research in China, 4 (1), 47- 72. DOI: https://doi.org/10.1007/s11782-010-0003-5
  26. Kogut, B. & Zander, U. (1992).Knowledge of the Enterprise, Combinative Capabilities and the Replication of Technology.Organizational Science, 3(3), 383–397. DOI: https://doi.org/10.1287/orsc.3.3.383
  27. Kothari, C.R., (2009). Research Methodology-Methods and Techniques, New Delhi, Wiley Eastern Limited.
  28. Kraaijenbrink, J, Spender, J-C.&Groen, A. J. (2011). The Resource-Base View: A Review and Assessment of its Critiques. Journal of Management, 36 (1), 349-372. DOI: https://doi.org/10.1177/0149206309350775
  29. Kumar, R, (2005), Research Methodology-A Step-by-Step Guide for Beginners, 2nd.ed, Singapore, Pearson Education.
  30. Mauri, A. (1983). The Potential for Savings and Financial Innovation in Africa.Savings and Development, VII (4), 319- 337.
  31. Mavridis, D.G, (2004). The Intellectual Capital Performance of the Japanese Banking Sector.Journal of Intellectual Capital, 5 (1), 92 – 115. DOI: https://doi.org/10.1108/14691930410512941
  32. Nayak, B. &Nahak, C. (2011).Benchmarking Performance of Public Sector Banks in India.The IUP Journal of Bank Management, X(2), 57-76.
  33. Nyangosi, R. (2011). E-Banking: An Integration Technology in Kenya.Guru Nanak Dev University, Amritsar (India).
  34. Orlikowski, W. J. (2002). Knowledge in Practice Enabling a Collective Capability in Distributed Organizing.Organization Science, 13, 249–273. DOI: https://doi.org/10.1287/orsc.13.3.249.2776
  35. Parker, C, (2000).Performance Measurement.Work Study, 49(2), 63 – 66. DOI: https://doi.org/10.1108/00438020010311197
  36. Pavlou, P. A. (2011). Understanding the Elusive Black Box of Dynamic Capabilities.Decision Sciences Journal, C 2011. DOI: https://doi.org/10.1111/j.1540-5915.2010.00287.x
  37. Porter, M. E. (1998). The Competitive Advantage of Nations. London: Macmillan. DOI: https://doi.org/10.1007/978-1-349-14865-3
  38. Porter, M. E. (1991). Towards a Dynamic Theory of Strategy.Strategic Management DOI: https://doi.org/10.1002/smj.4250121008
  39. Journal
  40. Porter, M. E. & Millar, V. E., (1985). How Information Gives You Competitive Advantage, Harvard Business Review, 63, 149-160.
  41. Prahalad, C. K. & Hamel, G. (1990).The Core Competence of the Corporation.Harvard Business Review, 68(3), 79-91.
  42. Priem, R. & Butler, J. (2001). Tautology in the Resource Based View and the Implications of Externally Determined Resource Value: Further Comments. Academy of Management Review, 26, 57–66. DOI: https://doi.org/10.2307/259394
  43. Ranjit, K. (2005). Research Methodology-A Step-by-Step Guide for Beginners, (2nd.ed), Singapore, Pearson Education.
  44. Ray, G., Barney, J. B. &Muhanna, W. A. (2004). Capabilities, Business Processes, and Competitive Advantage: Choosing the Dependent Variable in Empirical Tests of the Resource-Based View. Strategic Management Journal, 25 (1) 23-38. DOI: https://doi.org/10.1002/smj.366
  45. Rumelt, R. (1984). Towards a Strategic Theory of the Enterprise.In Competitive.Strategic Management. Lamb RB (ed). Prentice-Hall: Englewood Cliffs.
  46. Saunders, M. N., Saunders, M., Lewis, P., &Thornhill, A. (2009).Research methods for business students. India: Pearson Education .
  47. Shapiro, S. S. &Wilk M. B. (1965).An Analysis of Variance Test for Normality (Complete Samples).Biometrika, 52(3/4) (December):591-611. DOI: https://doi.org/10.1093/biomet/52.3-4.591
  48. Tan, Y. & Floros, C. (2012).Stock Market Volatility and Bank Performance in China.Studies in Economics and Finance, 29. DOI: https://doi.org/10.1108/10867371211246885
  49. Tashakkori, A. & Teddlie, C., (1998), Mixed Methodology: Combining Qualitative and Quantitative Approaches, Thousand Oaks, Ca..Sage.
  50. Teece, D. J. (2007).Explicating Dynamic Capabilities: The Nature and Microfoundations of Sustainable Enterprise Performance.Strategic Management Journal, 28(13), 1319-1350. DOI: https://doi.org/10.1002/smj.640
  51. Teece, D. J. ( 2006). Reflections on Profiting from Innovation.Research Policy DOI: https://doi.org/10.1016/j.respol.2006.09.009
  52. (8), 1131–1146.
  53. Teece, D. J., Pisano, G. &Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509-533. DOI: https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
  54. Wernerfelt, B. (1984). A Resource-Based View of the Form.Strategic Management Journal, 5(2), 171-80. DOI: https://doi.org/10.1002/smj.4250050207
  55. Wiggins, R. R. & Ruefli, T. W. (2002). Sustained Competitive Advantage: Temporal Dynamics and the Incidence and Persistence of Superior Economic Performance, Organization Science: A Journal of the Institute of Management Sciences, 13 ( 1), 82-105. DOI: https://doi.org/10.1287/orsc.13.1.81.542
  56. Winter, S. G. (2003).Understanding Dynamic Capabilities.Strategic Management Journal, 24(10), 991-995. DOI: https://doi.org/10.1002/smj.318
  57. Yin, R.K. (1994).Case Study Research: Design and Methods, 2nd ed., Thousand Oaks, Sage Publications.
  58. Yue, P. (1992). Data Envelopment Analysis and Commercial Bank Performance with Applications to Missouri Banks.Federal Reserve Bank of St Louis Economic Review, January/February, 31-45. DOI: https://doi.org/10.20955/r.74.31-45
  59. Zahra, S., Sapienza, H. & Davidsson P. (2006). Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda. Journal of Management Studies, 43, 917–955. DOI: https://doi.org/10.1111/j.1467-6486.2006.00616.x
  60. Zeithaml, V. A. & Bitner, M. J. (1996).Services Marketing, New York, McGraw- Hill.
  61. Zickmund, W.G., & Babin, B.J. (2010).Exploring marketing research (9th Ed).
  62. Mason, OH.: Thomson Higher Education.