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Dynamic Managerial Capabilities on Firm Performance: Evidence from Travel Agencies and Tour Operators in Kenya

Author

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  • Dr. Titus M. Kising’u

    (Ph.D, Lecturer, Jomo Kenyatta University of Agriculture & Technology (JKUAT), Mombasa, Kenya)

  • Ruwaida Hassan Mwajambia

    (Masters candidate, Jomo Kenyatta University of Agriculture & Technology (JKUAT), Mombasa, Kenya)

Abstract

Purpose: The general purpose of this research was to examine the effect of dynamic managerial capabilities on firm performance in travel agencies and tour operators in Mombasa County, Kenya. Specifically, the research sought to determine the effect of managerial human capital capability, managerial social capital capability, and managerial cognitive capability on firm performance in travel agencies and tour operators in Mombasa County, Kenya. Design/methodology/approach Drawing on the resource-based theory, dynamic capabilities theory, and dynamic managerial capabilities theory, the research utilized a positivist research philosophy and a non-experimental research methodology. The research paper utilized correlational research design and a cross-sectional survey design for testing noncausal relationships among variables. Stratified random sampling technique was used to select a sample size of 29 travel agencies and 86 tour operators in Mombasa County, Kenya. A cross-sectional survey-based approach was used to collect primary data gathered using self-administered structured questionnaires delivered through the drop and pick method. Data was processed and entered into the statistical package for social sciences (SPSS) version 26 to create a data sheet to be used for analysis. Data was analyzed using descriptive and inferential statistics. Pearson’s product moment correlation analysis was performed to confirm or deny the relationship between the variables. Multiple linear regression analysis was used for hypotheses testing. Findings: Findings revealed that dynamic managerial capabilities had direct positive effect on firm performance. The results indicated that managerial human capital capability, managerial social capital capability, and managerial cognitive capability were able to positively and significantly predict firm performance. Practical implications Managers and policy makers within the travel and tourism sector should to focus on strengthening dynamic managerial capabilities to improve the performance of travel agencies and tour operators as they recover from the COVID-19 crisis. Originality/value This research generates novel insights into how dynamic managerial capabilities predict firm performance in the context of travel agencies and tour operators. However, the current research has a number of limitations, some of which offer fruitful avenues for future research. Future research could examine into how dynamic managerial capabilities predict firm performance in other sectors or in other regions

Suggested Citation

  • Dr. Titus M. Kising’u & Ruwaida Hassan Mwajambia, 2022. "Dynamic Managerial Capabilities on Firm Performance: Evidence from Travel Agencies and Tour Operators in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(5), pages 770-783, May.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:5:p:770-783
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