IDEAS home Printed from https://ideas.repec.org/a/baq/taprar/v4y2024i4p16-24.html
   My bibliography  Save this article

Evaluating technology capability in strategy implementation and firm performance of the furniture manufacturing sector in Kenya

Author

Listed:
  • Jane Nasimiyu Were

    (California Miramar University, Nairobi)

Abstract

The object of the study is the performance of the furniture manufacturing sector in Kenya. The paper utilized descriptive and explanatory research design. The study targeted a population of 686 managerial staff and 195 CEOs in the furniture manufacturing sector. Structured questionnaires were distributed to the senior managers and a factor analysis was used to reduce the number of variables and establish the underlying constructs while analysis of moments of structures was applied to develop the theory.Technology capability was found to explain 49 % of the variance in the firm performance. The fit indices suggested that the data was an adequate fit of the hypothesized model relating to technology capability and firm performance NFI=0.604, RFI=0.501, IFI=0.639, TLI=0.539 and CFI=0.634 with a p-value>0.05. In addition, the study found out that technology capability and firm performance had a positive and statistically significant contribution at 0.05 level of significance. This was depicted by the significance of the standardized regression coefficient of technology capability hypothesized path (β=0.878, S.E.=0.75, C.R.=11.743, and p-value 0.05). Therefore, the alternative hypothesis that size and age have a negative moderating contribution on firm performance was rejected at 0.05 level of significance.To enhance a firm's performance in terms of profitability and growth, it is crucial to manage and sustain technology capabilities through an effective strategy implementation process. The study not only adds value to the existing body of knowledge in strategic management practice but points out that when implementing strategy, CEOs and senior managers should consider technology capability factors to improve the firm performance.

Suggested Citation

  • Jane Nasimiyu Were, 2024. "Evaluating technology capability in strategy implementation and firm performance of the furniture manufacturing sector in Kenya," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 4(4(78)), pages 16-24, August.
    • Handle: RePEc:baq:taprar:v:4:y:2024:i:4:p:16-24
    DOI: 10.15587/2706-5448.2024.310175
    as

    Download full text from publisher

    File URL: https://journals.uran.ua/tarp/article/download/310175/302353
    Download Restriction: no
    File URL: https://libkey.io/10.15587/2706-5448.2024.310175?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David J Teece, 2014. "A dynamic capabilities-based entrepreneurial theory of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 8-37, January.
    2. Claudio Loderer & René Stulz & Urs Waelchli, 2017. "Firm Rigidities and the Decline in Growth Opportunities," Management Science, INFORMS, vol. 63(9), pages 3000-3020, September.
    3. Guan, Jian Cheng & Yam, Richard C.M. & Mok, Chiu Kam & Ma, Ning, 2006. "A study of the relationship between competitiveness and technological innovation capability based on DEA models," European Journal of Operational Research, Elsevier, vol. 170(3), pages 971-986, May.
    4. Haseena Bader Alkatheeri & Fauzia Jabeen & Khalid Mehmood & Gabriele Santoro, 2021. "Elucidating the effect of information technology capabilities on organizational performance in UAE: a three-wave moderated-mediation model," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 18(10), pages 3913-3934, December.
    5. Takehiko Yasuda, 2005. "Firm Growth, Size, Age and Behavior in Japanese Manufacturing," Small Business Economics, Springer, vol. 24(1), pages 1-15, December.
    6. Zahra, Shaker A. & Garvis, Dennis M., 2000. "International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 469-492.
    7. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gonçalo Rodrigues Brás & Miguel Torres Preto, 2021. "The consequences of intrapreneurship in exporting firms: a structural-model approach," CeBER Working Papers 2021-06, Centre for Business and Economics Research (CeBER), University of Coimbra.
    2. Riviere, Monica & Romero-Martínez, Ana M., 2021. "Network embeddedness, headquarters entrepreneurial orientation, and MNE international performance," International Business Review, Elsevier, vol. 30(3).
    3. Bouguerra, Abderaouf & Cakir, M. Selim & Rajwani, Tazeeb & Mellahi, Kamel & Tatoglu, Ekrem, 2025. "MNEs engagement with environmental sustainability in an emerging economy: Do dynamic capabilities and entrepreneurial orientation matter?," International Business Review, Elsevier, vol. 34(2).
    4. Asif Ali & Ashok Aima & Jaya Bhasin & Robert D. Hisrich, 2021. "Measuring Entrepreneurial Orientation in Developing Economies: Scale Development and Validation," Jindal Journal of Business Research, , vol. 10(2), pages 147-162, December.
    5. Derya Çelik & Ülkü Uzunçarşılı, 2023. "Is the Effect of Organizational Ambidexterity and Technological Innovation Capability on Firm Performance Mediated by Competitive Advantage? An Empirical Research on Turkish Manufacturing and Service ," SAGE Open, , vol. 13(4), pages 21582440231, November.
    6. Reypens, Lina & Bacq, Sophie & Milanov, Hana, 2021. "Beyond bricolage: Early-stage technology venture resource mobilization in resource-scarce contexts," Journal of Business Venturing, Elsevier, vol. 36(4).
    7. Zahoor, Nadia & Al-Tabbaa, Omar, 2021. "Post-entry internationalization speed of SMEs: The role of relational mechanisms and foreign market knowledge," International Business Review, Elsevier, vol. 30(1).
    8. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    9. Lillemo, Shuling Chen, 2014. "Measuring the effect of procrastination and environmental awareness on households' energy-saving behaviours: An empirical approach," Energy Policy, Elsevier, vol. 66(C), pages 249-256.
    10. Xiaoxu Dong & Huawei Zhao & Tiancai Li, 2022. "The Role of Live-Streaming E-Commerce on Consumers’ Purchasing Intention regarding Green Agricultural Products," Sustainability, MDPI, vol. 14(7), pages 1-13, April.
    11. Simplice A. Asongu, 2019. "FDI in Selected Developing Countries: Evidence from Bundling and Unbundling Governance," Working Papers 19/057, European Xtramile Centre of African Studies (EXCAS).
    12. Younsuk Park & Jaeun Shin & Taejong Kim, 2010. "Firm size, age, industrial networking, and growth: a case of the Korean manufacturing industry," Small Business Economics, Springer, vol. 35(2), pages 153-168, September.
    13. Hua Tang, 2022. "The Effect of ESG Performance on Corporate Innovation in China: The Mediating Role of Financial Constraints and Agency Cost," Sustainability, MDPI, vol. 14(7), pages 1-21, March.
    14. Asongu Simplice, 2014. "Fresh Patterns of Liberalization, Bank Return and Return Uncertainty in Africa," Working Papers of the African Governance and Development Institute. 14/004, African Governance and Development Institute..
    15. Sarel Gronum & John Steen & Martie-Louise Verreynne, 2016. "Business model design and innovation: Unlocking the performance benefits of innovation," Australian Journal of Management, Australian School of Business, vol. 41(3), pages 585-605, August.
    16. AHMED Umair & SHAH Saeed Abbas & QURESHI Muhammad Asif & SHAH Muzafar Hussain & KHUWAJA Faiz Muhammad, 2018. "Nurturing Innovation Performance Through Corporate Entrepreneurship: The Moderation Of Employee Engagement," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(2), pages 20-30, August.
    17. Gizem Uzun & Murat Tezer, 2019. "Student Perceptions on War Topics and War Anxiety in History Classes," Revista romaneasca pentru educatie multidimensionala - Journal for Multidimensional Education, Editura Lumen, Department of Economics, vol. 11(1), pages 256-271, March.
    18. Chahal, Hardeep & Gupta, Mahesh & Lonial, Subhash & Raina, Swati, 2019. "Operational flexibility-entrepreneurial orientation relationship: Effects and consequences," Journal of Business Research, Elsevier, vol. 105(C), pages 154-167.
    19. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Governance, capital flight and industrialisation in Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    20. Hendrik Terbeck & Verena Rieger & Niels Van Quaquebeke & Andreas Engelen, 2022. "Once a Founder, Always a Founder? The Role of External Former Founders in Corporate Boards," Journal of Management Studies, Wiley Blackwell, vol. 59(5), pages 1284-1314, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:baq:taprar:v:4:y:2024:i:4:p:16-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iryna Prudius (email available below). General contact details of provider: https://journals.uran.ua/tarp/issue/archive .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.