Abstract:
This study addresses the mediation effect of transformational leadership
style on the relationship between dynamic capabilities and competitive
advantage of manufacturing firms in Nairobi, Kenya. The study used
positivism paradigm, explanatory research design, and quantitative
approach on a target population of 795 manufacturing firms located in
Nairobi, Kenya. A sample size of 321 firms was selected based on
Yamane formula of determination in selecting respondents to be served
with the questionnaires. The study employed stratified and simple
random sampling technique to constitute the required sample of firms.
The results showed that dynamic capabilities positively and significantly
affect competitive advantage of manufacturing firms. The results further
indicate that transformational leadership style mediates the relationship
between dynamic capabilities and competitive advantage. The results
provide a channel through which CEOs of manufacturing firms can
identify constructs by sensing, seizing and reconfiguring capabilities for
competitive advantage. The results will also provide managers and
industry practitioners with opportunities to come up with strategies,
more emphasis on, and appreciate the role of the leader in the
deployment of dynamic capabilities so as to achieve competitive
advantage in the ever changing contemporary, volatile operating
environment.
