Achieving CA to enhance firm perfomance in a busines to business (B2B) environment

Abstract

CA provides capabilities to sense, seize and counter rapid changes in the market. Current trading space is highly competetive and agile firms tend to be more successful and maintain a sustainable competetive advantage. Studies have shown that CA plays a key role on Firm perfomance (FP), but little is know on how CA is achieved, thereby creating an apetite and gap for more research to be done. Using the dynamic capabilities framework, resource based theory and knowledge management theory the research investigated effect of (individually and intergrated) innovation capabilities (IC), knowledgement management capabilitties (KMC) and information technology capabilities(ITC) on CA (CA). The study also investigated if CA moderates the efffect of innovation, information technology and knowledge management on organisational perfomance. Research was based single firm with a finite sample, hence a case study methodology using quantitative approch for data collection and analysis. four hypothesis were formulated to evaluate the connection between IC, KMC, and ITC and CA. An additional hypothesis with sub-hypothesis was fomulated to test if CA moderates the effect of the three variables (IC, KMC, ITC) on firm perfomance. The study used non- financial perfomance indicators to measure firm perfomance (customer satisfaction, customer loyalty and retention). The five hypothesis was evaluated after all the responses from the participants were received. The results show that the data violated the normality test and only two factors were derived through the scree plot (CA and Firm Perfomance). Realising that the data violated the normality test, with outliers required the researcher to use Robust Linear Regression Analysis and Robust Moderated linear regression analysis. This aproach was necessary because these statistical techniques are not sensitive to outliers and non-normality. Results indicate a significant effect of IC, KMC, ITC on the ability of a firm to able see opportunities in the market and respond within a shortest period of time. Also the investigation show that CA does not moderate the effects of KMC, and ITC on company perfomance but instead CA moderates the effects of IC on organisational perfomance. Implications on the findings of the research, suggestions for more study, contributions to research and business are discussed in chapter 6 and chapter 7.