Influence of Resource Capabilities on Performance of Large Dairy Firms in Kenya

Abstract

Dairy industry, just like other firms focus to achieve high performance. This study aimed at assessing the influence of resource capabilities on performance of large dairy firms in Kenya. A descriptive research design was adopted for this study. This study targeted a sample of 244 senior and middle level management staff from large dairy. An interview schedule was used to collect information on generic strategies and performance indicators. Tools were tested for validity and reliability. Data were analyzed using SPSS software by use of descriptive statistical and inferential methods. Pearson correlation was used to establish the relationship between study variables. Findings show that effective transport system and storage facilities improved firm's performance, through increased production due to presence of storage and fast movement of goods to consumers as a result of effective transport system. All these led to improved performance through increased market share, low customer response rate and improved efficiency. In conclusion, resource capabilities are integral in enhancing performance. Thus, it is recommended that dairy firms need to focus on resource capacity especially of storage and transport to increase performance.