In Kenya, the issues of poor performance are prominent among supermarkets. Over
the years, supermarkets have sought to employ multiple strategies for serving diverse
categories of consumers. However, it is interesting that despite the rise in
comprehension and execution of competitive techniques, supermarkets in Kenya have
experienced poor performance and eventually closure. The main objective of this
study was to investigate the relationship between organizational ambidexterity,
dynamic capacity, learning orientation, and firm performance in Kenyan
supermarkets. The specific objectives of the study were to determine the effect of
organizational ambidexterity on firm performance of supermarkets, to determine the
mediating role of dynamic capabilities in the relationship between organization
ambidexterity and firm performance in supermarkets, and to evaluate the moderating
role of learning orientation in that relationship. Theories relevant to the study are;
resource-based view theory, balance scorecard theory and knowledge-based. A
positivist philosophical perspective and an explanatory research design were used in
the study. Six hundred managers of supermarket in Nairobi County, Kenya were the
focus of the research. 234 supermarkets were selected using simple random sampling.
Questionnaire was a tool for data collection. Factor analysis was used to test content
validity. Data analysis included both descriptive and inferential statistics. The study
employed multiple regression and hierarchical regression analysis to test the
moderation and mediation. Results showed a significant effect of firm size (β=0.350,
p<0.05) as a control variable. On direct effects, organization ambidexterity (β=0.483,
p<0.05) and dynamic capability (β=0.154, p<0.05). There was also a significant
moderation of learning orientation (β=0.084, p<0.05). Dynamic capability mediated
the relationship between organizational ambidexterity and firm performance (β=.160,
bootstrap lower limit =0.0247 and bootstrap upper limit =0.3156. Supermarkets need
to create new opportunities and re-configure existing resources to achieve flexibility
in a dynamic environment. Furthermore, organizational ambidexterity contributes to
firm performance by leveraging existing knowledge and providing firms with
innovative solutions. Consequently, organizational ambidexterity allows the company
to build a variety of learning capacities that can increase its value. The study
concluded that firm performance could be enhanced by adopting organization
ambidexterity and dynamic capability. The results also accord with knowledge-based
theory, balance scorecard theory, and resource-based theory. The study recommends
that managers and supervisor of supermarkets should embrace organization
ambidexterity and dynamic capability to increase on their firm performance. Future
studies may employ a longitudinal strategy to explore how organizational
ambidexterity improves performance because the study was cross-sectional. Other
research may use structural equation model to explore the latent relationship among
other variables.
In Kenya, the issues of poor performance are prominent among supermarkets. Over
the years, supermarkets have sought to employ multiple strategies for serving diverse
categories of consumers. However, it is interesting that despite the rise in
comprehension and execution of competitive techniques, supermarkets in Kenya have
experienced poor performance and eventually closure. The main objective of this
study was to investigate the relationship between organizational ambidexterity,
dynamic capacity, learning orientation, and firm performance in Kenyan
supermarkets. The specific objectives of the study were to determine the effect of
organizational ambidexterity on firm performance of supermarkets, to determine the
mediating role of dynamic capabilities in the relationship between organization
ambidexterity and firm performance in supermarkets, and to evaluate the moderating
role of learning orientation in that relationship. Theories relevant to the study are;
resource-based view theory, balance scorecard theory and knowledge-based. A
positivist philosophical perspective and an explanatory research design were used in
the study. Six hundred managers of supermarket in Nairobi County, Kenya were the
focus of the research. 234 supermarkets were selected using simple random sampling.
Questionnaire was a tool for data collection. Factor analysis was used to test content
validity. Data analysis included both descriptive and inferential statistics. The study
employed multiple regression and hierarchical regression analysis to test the
moderation and mediation. Results showed a significant effect of firm size (β=0.350,
p<0.05) as a control variable. On direct effects, organization ambidexterity (β=0.483,
p<0.05) and dynamic capability (β=0.154, p<0.05). There was also a significant
moderation of learning orientation (β=0.084, p<0.05). Dynamic capability mediated
the relationship between organizational ambidexterity and firm performance (β=.160,
bootstrap lower limit =0.0247 and bootstrap upper limit =0.3156. Supermarkets need
to create new opportunities and re-configure existing resources to achieve flexibility
in a dynamic environment. Furthermore, organizational ambidexterity contributes to
firm performance by leveraging existing knowledge and providing firms with
innovative solutions. Consequently, organizational ambidexterity allows the company
to build a variety of learning capacities that can increase its value. The study
concluded that firm performance could be enhanced by adopting organization
ambidexterity and dynamic capability. The results also accord with knowledge-based
theory, balance scorecard theory, and resource-based theory. The study recommends
that managers and supervisor of supermarkets should embrace organization
ambidexterity and dynamic capability to increase on their firm performance. Future
studies may employ a longitudinal strategy to explore how organizational
ambidexterity improves performance because the study was cross-sectional. Other
research may use structural equation model to explore the latent relationship among
other variables.
