The influence of dynamic capabilities on the performance of the small and medium enterprises in the manufacturing sector in Kenya

Global competition, technological advancements and changing consumer needs, simultaneous paradigms push companies to be simultaneous, successively in different dimensions such as product design and development, manufacturing and distribution, communication and marketing. The objective of this study was to determine the relationship between dynamic capacity and the performance of the marine industry in Kenya. The specific objective was to determine how dynamic capabilities affect performance in the small and medium enterprises in the manufacturing sector in Kenya. The study used two theories namely resource-based and knowledge-based to strengthen its case for the relationship between dynamic capacity and performance. The target population was 60 manufacturing SMEs operating in Kenya. A modified Likert scale questionnaire was developed, divided into three parts. A pilot study was carried out to refine the instrument. Data analysis was performed on a computer using Statistical Package for Social Science SPSS for Windows. The analysis was carried out using numbers of frequencies, percentages, means and standard deviations, regression, correlation and the information generated was presented in the form of graphs and tables. The analysis found a very strong positive correlation between the dynamism of organizational capacities and performance, as demonstrated by the Karl Pearson correlation model. The study concluded that there is a positive relationship between dynamism and performance. The study recommended that manufacturing SMEs should invest more in research, capital; Innovation such as a new technology and creating the new products and services as well as having a habit of setting short and long-term goal.