Dynamic Capabilities Frameworks on Competitiveness of Payment Service Provider Firms in Kenya

Abstract

Dynamic Capabilities Frameworks are an important tool that can be used by organizations to build, integrate, and reconfigure the internal and external capabilities of an organization, enabling it to cope with a rapidly changing competitive business environment.  The frameworks emphasize strategic management practices that allow firms to adapt, innovate, and sustain competitiveness in dynamic markets. This study sought to investigate the influence that dynamic capabilities frameworks have on the competitiveness of Payment Service Provider (PSP) firms in Kenya. Mixed-method research was used, and both primary and secondary data. The target population was all employees working in 35 PSPs operating in Nairobi, with the sampling size being 140 participants, selected through purposive sampling, while secondary data included annual reports and relevant literature. SPSS version 23 was used for data analysis, with descriptive and inferential statistics used to show the relationship between leadership capabilities and competitiveness of PSPs. The results showed a positive and significant relationship between dynamic capabilities and competitiveness. Positive and significant correlation coefficients were evident for leadership capabilities (r = .890, p = 0.000; β = 0.69, p = .000). The results supported the conclusion that the leadership capabilities of Kenyan PSP have a positive effect on their competitiveness.