FIRM MANAGERIAL CAPABILITIES, SUSTAINABLE OPERATIONS MANAGEMENT PRACTICES AND COMPETITIVE ADVANTAGE OF MANUFACTURING FIRMS IN KENYA

Abstract

Successful implementation of sustainable practices requires resources and capability (Moldan,
Janouskova & Hak, 2012). However, little is known about the moderating effect of managerial
capabilities on the relationship between sustainable operations management practices and
competitive advantage. Business models are incomplete if they fail to specify moderating variables
and they will be unable to solve business problems (Namazi & Namazi, 2016). The main objective
of this study was to examine the moderating effect of firm managerial capabilities on the
relationship between sustainable operations management practices and competitive advantage.
903 manufacturing firms registered with Kenya association of manufacturer made up the
population of the study where a sample of 300 was drawn. The data collected was primary and it
was analyzed using covariance-based structural equation modeling. Validity and reliability tests
were also done. The finding indicated that managerial capabilities do not moderate the
relationship between SOMPs and firm competitive advantage. The findings challenges the notion
that experienced managers makes better leaders who improve firm performance and competitive
advantages. This requires a second thought and a different view for people who operate on this
notion. The relationship is grounded on the Theory of performance frontiers (TPF), Open System
Theory (OST) and Resource Based View (RBV).