relationship between dynamic capabilities and competitive advantage of technical, vocational and ...

222 Pages·2016·6.17 MB·English

TITLE PAGE
RELATIONSHIP BETWEEN DYNAMIC
CAPABILITIES AND COMPETITIVE
ADVANTAGE OF TECHNICAL, VOCATIONAL
AND ENTREPRENEURSHIP TRAINING
INSTITUTIONS IN KENYA

JARED DEYA

PhD BUSINESS ADMINISTRATION
(Strategic Management)

JOMO KENYATTA UNIVERSITY OF
AGRICULTURE AND TECHNOLOGY.

2016
Relationship between dynamic capabilities and competitive
advantage of Technical, Vocational and Entrepreneurship
Training Institutions in Kenya

Jared Deya

A Thesis submitted in partial fulfillment for the degree of
Doctor of Philosophy in Business Administration in Jomo
Kenyatta University of Agriculture and Technology.

2016
DECLARATION
This thesis is my original work and has not been presented for a degree in any other
University
Signature................................................... Date..............................................
Jared Deya

This thesis has been submitted for examination with our approval as University
Supervisors
Signature................................................... Date................................................
Dr. Oloko Margaret
JKUAT, Kenya

Signature ....................................................... Date............................................
Dr. George Orwa
JKUAT, Kenya
ii
DEDICATION
This work is dedicated to my loving wife Lillian and daughter Tiffany, who bore the
effort and time I put into this work. May God bless you
iii
ACKNOWLEDGEMENT
It is impossible to write a thesis of this magnitude without the help of ―foundational-
level‖ people. Special thanks:
My parents, brothers and sisters for the love, support, and encouragement i received.
I do not have words to adequately describe my deep gratitude for all they have
provided me, though i hope to show them in the years to come.

My supervisors Dr. Margaret Oloko and Dr. George Orwa for their scholarly advice,
guidance, encouragement, time and skills given to strengthen this work;
Mark Kegohi, David Mayanja and Joseph Likavo whose spiritual messages have
consistently inspired me to bound past mediocrity;
Patrick, Omesa, Sween, Emma, Margaret, Raphael, Neddy, Walter, Olala the best
example of friends I have ever known;
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TABLE OF CONTENTS
TITLE PAGE ........................................................................................................... i
DECLARATION ...................................................................................................... i
DEDICATION ....................................................................................................... iii
ACKNOWLEDGEMENT ...................................................................................... iv
TABLE OF CONTENTS ......................................................................................... v
LIST OF TABLES ............................................................................................... viii
LIST OF FIGURES .............................................................................................. xiii
LIST OF APPENDICES ....................................................................................... xiv
LIST OF ABBREVIATIONS AND ACRONYMS .................................................xv
OPERATIONAL DEFINITION OF TERMS ........................................................ xvi
ABSTRACT ....................................................................................................... xviii
CHAPTER ONE ..................................................................................................... 20
INTRODUCTION ..................................................................................................20
1.1 Background to the study ............................................................................... 20
1.2 Statement of the problem ................................................................................... 27
1.3 Objectives of study ............................................................................................ 28
1.5 Research Hypothesis .......................................................................................... 28
1.6. Significance of the study ................................................................................... 29
1.7. Scope of study .................................................................................................. 30
1.8 Limitations of study ........................................................................................... 31
CHAPTER TWO ................................................................................................ …33
LITERATURE REVIEW .......................................................................................33
2.1. Introduction ...................................................................................................... 33
2.2 Theoretical Framework ...................................................................................... 33
v
2.3 Conceptual Framework ...................................................................................... 40
2.4. Review of Empirical Literature ......................................................................... 41
2.5 Critique of the existing Literature Relevant to the Study .................................... 60
2.6 Summary ........................................................................................................... 64
2.7 Research Gaps ................................................................................................... 65
CHAPTER THREE ................................................................................................66
RESEARCH METHODOLOGY ............................................................................66
3.1 Introduction ....................................................................................................... 66
3.2 Research Design ................................................................................................ 66
3.3 Target Population .............................................................................................. 67
3.4. Sampling Frame ................................................................................................ 67
3.5. Sampling Technique ......................................................................................... 68
3.6. Data Collection Instruments .............................................................................. 68
3.7 Pilot Test Study ................................................................................................. 68
3.8. Data Analysis and Presentation ......................................................................... 70
3.9 Model specification............................................................................................ 71
CHAPTER FOUR ..................................................................................................73
RESEARCH FINDINGS AND DISCUSSION .......................................................73
4.1 Introduction ....................................................................................................... 73
4.2 Response Rate ................................................................................................... 73
4.3 Pilot study results ............................................................................................... 77
4.3.1 Reliability and validity of research instrument................................................78
vi
4.4 Multicollinearity Test....................................................................................... 113
4.4.1 Identity Correlation Matrix Test (Bartlett's test of Sphericity) ....................... 114
4.4.2 Sample adequacy test (Kaiser-Meyer- Olkin (KMO)).................................... 114
4.5 Normality test .................................................................................................. 117
4.6 Descriptive Analysis ........................................................................................ 123
4.7 Regression Analysis ......................................................................................... 144
4.8 Correlation Analysis of Independent Variables ................................................ 165
CHAPTER FIVE .................................................................................................. 167
SUMMARY, CONCLUSION AND RECOMMENDATIONS ............................. 167
5.1 Introduction ..................................................................................................... 167
5.2 Summary of Findings ....................................................................................... 167
5.3 Conclusion ....................................................................................................... 172
5.4 Recommendation ............................................................................................. 173
5.5 Areas of further research .................................................................................. 175
REFERENCES ..................................................................................................... 176
APPENDICES....................................................................................................... 189

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LIST OF TABLES
Table 2. 1: Frameworks for categories of knowledge .............................................. 43
Table 2. 2: A summary of previous Empirical studies in KM
Capabilities/Infrastructure/ Enablers/ Processes ....................................................... 45
Table 2. 3: Dynamic Capabilities seen as combination of knowledge management
activities .................................................................................................................. 49
Table 2. 4: Perspectives on IT and Competitive Advantage ..................................... 52
Table 4. 1: Response according to TVET Institutions ............................................. 74
Table 4. 2: Position held by respondent ................................................................... 75
Table 4. 3: Response according to number of years in that position ......................... 75
Table 4. 4: Response according to gender ............................................................... 76
Table 4. 5: Response according to Education level .................................................. 76
Table 4. 6: Number of Employees ........................................................................... 77
Table 4. 7: Type of ownership of TVET.................................................................. 77
Table 4. 8: Reliability of Instruments ...................................................................... 79
Table 4. 9: Factor Loadings for Knowledge Management Capabilities-Acquisition
process .................................................................................................................... 80
Table 4. 10: Factor Loadings for Knowledge Management Capabilities-Conversion
process .................................................................................................................... 81
Table 4. 11: Factor Loadings for Knowledge Management Capabilities-Application
process .................................................................................................................... 81
Table 4. 12: Factor Loadings for Knowledge Management Competitive Advantage 82
Table 4. 13: Factor Loadings for ICT Capabilities-Digital option ............................ 83
viii
Table 4. 14: Factor Loadings for ICT Capabilities-Digital Agility (personnel
capability) ............................................................................................................... 84
Table 4. 15: Factor Loadings for ICT Capabilities-Digital agility (management
capability) ............................................................................................................... 85
Table 4. 16: Factor Loadings for ICT Capabilities-Competitive action for IT support
................................................................................................................................ 86
Table 4. 17: Factor Loadings for ICT Capabilities-Competitive Action for adaptive IT
................................................................................................................................ 87
Table 4. 18: Factor Loadings for ICT Competitive Advantage ................................ 88
Table 4. 19: Factor Loadings for Physical Infrastructural Capabilities ..................... 89
Table 4. 20: Factor Loadings for Physical Infrastructure Competitive Advantage .... 90
Table 4. 21: Factor Loadings for Curriculum Capabilities ....................................... 91
Table 4. 22: Factor Loadings for Curriculum Capabilities competitive advantage ... 92
Table 4. 23: Factor Loadings for TVET‘s Macro Environment................................ 93
Table 4. 24: Total Variance Explained for Knowledge Management Acquisition
process .................................................................................................................... 96
Table 4. 25: Total Variance Explained for Knowledge Management Conversion
process .................................................................................................................... 97
Table 4. 26: Total Variance Explained for Knowledge Management Application
process .................................................................................................................... 98
Table 4. 27: Total Variance Explained for Knowledge Management Competitive
advantage ................................................................................................................ 99
Table 4. 28: Total Variance Explained for ICT Capability- Digital Option ........... 100
Table 4. 29: Total Variance Explained for ICT Capability -Digital Agility (Personnel
capability) ............................................................................................................. 101
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