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Dynamic Capabilities, Human Capital, Firm Innovation: Evidence from Nairobi, Kenya, During COVID-19

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  • Belinda K. Muriuki
  • Zack B. Awino
  • Madara M. Ogot
  • James N. Muranga

Abstract

Organization and locally by the Ministry of Health in Kenya have resulted in financial distress in restaurants and led to their increased closure, financial loss and job losses. Restaurants are labor-intensive and compete fiercely in a dynamic environment making them vulnerable to disruptive conditions. Hence the need to develop dynamic capabilities and strategic human capital to achieve firm innovation which enables them to adapt to sudden environmental changes. The aim of the article, therefore, sought to determine the influence of strategic human capital on the dynamic capabilities -firm innovation relationship in restaurants in Nairobi, Kenya during the COVID-19 pandemic. The study examined the effect of dynamic capabilities on firm innovation. In addition, the study examined the influence of strategic human capital on the dynamic capabilities- firm innovation relationship. 263 large and medium size restaurants were included in the sample size, which was determined using a descriptive cross-sectional design and stratified random sampling. Using questionnaires administered by the researcher, data from 191 restaurants were gathered and analyzed using simple and hierarchical regression models According to the study's findings, there was a positive correlation between dynamic capabilities and firm innovation, and the relationship between these two variables was moderated by strategic human capital. The study concluded that strategic human capital influenced the dynamic capabilities and firm innovation relationship.

Suggested Citation

  • Belinda K. Muriuki & Zack B. Awino & Madara M. Ogot & James N. Muranga, 2023. "Dynamic Capabilities, Human Capital, Firm Innovation: Evidence from Nairobi, Kenya, During COVID-19," International Journal of Business and Management, Canadian Center of Science and Education, vol. 18(2), pages 132-132, June.
    • Handle: RePEc:ibn:ijbmjn:v:18:y:2023:i:2:p:132
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    References listed on IDEAS

    as
    1. Frank Crowley & Jane Bourke, 2018. "The Influence Of The Manager On Firm Innovation In Emerging Economies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-21, April.
    2. Alexander W. Bartik & Marianne Bertrand & Zoë B. Cullen & Edward L. Glaeser & Michael Luca & Christopher T. Stanton, 2020. "How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey," NBER Working Papers 26989, National Bureau of Economic Research, Inc.
    3. Belinda K. Muriuki & Zack B. Awino & Madara M. Ogot & James N. Muranga, 2021. "A Dynamic Capabilities-Based Research Model for Innovation in Independent Restaurants," International Business Research, Canadian Center of Science and Education, vol. 14(12), pages 135-135, December.
    4. Dagnachew Leta Senbeto & Alice H. Y. Hon, 2020. "The impacts of social and economic crises on tourist behaviour and expenditure: an evolutionary approach," Current Issues in Tourism, Taylor & Francis Journals, vol. 23(6), pages 740-755, March.
    5. Yang, Yang & Zhang, Hongru & Chen, Xiang, 2020. "Coronavirus pandemic and tourism: Dynamic stochastic general equilibrium modeling of infectious disease outbreak," Annals of Tourism Research, Elsevier, vol. 83(C).
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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