Effect Of Business Strategic Agility Enablers On Performance Of Postal Corporation Of Kenya, Nairobi County

Abstract

The current business environment is vibrant, volatile, turbulent and unpredictable. The success of business in such sporadic environment is pegged on its adaptability to quickly sense and react to environmental change. As a result, many businesses have devised their own business strategic agilities to adapt to the ever-changing business environment to remain a going concern. The general objective of the study was to investigate the effect of business strategic agility enablers on firm performance. The specific objectives were to; establish the effect of innovation on firm performance, examine the effect of Information Technology Integration on firm performance, find out the effect of human resource capability on firm performance and determine the effect of management commitment and support on firm performance. The study employed Knowledge Based View (KBV) theory, Resource Based View (RBV) theory, and Dynamic Capability View (DVC) theory. The study used a descriptive survey research design. A stratified random sampling technique of sample size of 274 from a population of 866 employees at Postal Corporation of Kenya (PCK) was used. Data was collected using closed-ended questionnaires. Supervisors and research experts were used to ascertain validity of the study instruments. Cronbach’s alpha coefficient was used to determine the reliability of research instruments. The study used the lower limit of diagnostic rule agreed on Cronbach’s alpha coefficient of 0.7 as suggested by Merriam & Grenier (2019). The descriptive statistics in form of standard deviation, mean distributions, variances, tables, and frequency distribution percentages were used to display study findings. Inferential statistics of multiple regression analysis was used to show the relationship while Pearson correlation analysis was used to show the strength of the relationship. From the study findings Innovation, Information technology and management commitment ans support were highly correlated with perfromance with r= 0.611,0.501, and 0.699 respectively. While Human resource capability showed a weak poisitive correaltion with an r=0.384. The study found out that business simulation, encouragement of new business strategies as well as new product development innovation positively affected performance at PCK. Additionally, embracement of management information systems (MIS) and existence of a non-hierarchical business network positively affected performance. Recruitment and selection process at PCK on job demands, the organization conducting firm regular explicit trainings to its employees were also found to have a positive effect on the performance of the organization. The further study made the conclusion that, management commitment and support highly influenced performance of PCK through existence of employee encouragement practices as well as good remuneration and overtime payments.