Dynamic Capabilities: Do They Really Matter in Strategy Implementation? Evidence from Small and Medium Manufacturing Firms in Kenya

Abstract

Scholars believe that implementation of a strong strategy is a panacea to superior business firm’s performance. This
study tested the influence of five dynamic capability drivers on the performance of manufacturing firms. The
Dynamic Capability’s View of the firm provided a useful framework where these drivers were analyzed using a
sample of 115 firms. Results from four drivers confirm that dynamic capabilities positively influences firm’s
performance. These drivers are technology, human resource, leadership style and structure. Strategic direction only
influences other drivers but not performance. When all the drivers are combined, only structure and technology
matters in influencing firm’s performance. This study recommends use of strong dynamic capabilities to drive the
strategy implementation efforts to success.