Performance of Firms in the Service Industry in Kenya: Does Core Competencies Matter in Micro Cap Holding?

Abstract

The service industry plays a key role in economic development through employment opportunities and contribution to revenue stream for governments. But the sector registers poor performance due to lack of financial resources to fund its operations, and even after having service charters and using technology there has been no change. It is thought that using competencies might change the trend of poor performance; therefore this study sought to investigate the effect of core competencies on performance of organizations in the service industry by concentrating on Micro Cap Holding. A cross-sectional design was adopted and 63 respondents picked using simple random sampling technique from the target of 645 employees. The data was collected using semi-structured questionnaires were analyzed through descriptive, correlation and regression analysis. The study results revealed a strong positive and significant effect between core competence and performance. The study recommended that service industry players adopt core competencies so as to increase their performance.

Effect of deployment of strategic leadership in the horticulture industry: a case study of selected flower farms in Kenya

“…The relative contribution of this level leading to the support of the hypothesis is consistent with those of previous researches. Jamhour (2010) reported a positive relationship between core competence and performance; Shafie et.al (2015) had a similar finding in relating leadership competence with performance, Ambilichu et.al, (2022) reported the same kind of finding in relating core skills with performance while Moga (2021) found a positive effect of core competence on performance.…”

“…This research showed the indirect effect of core competence on organizational performance via competitive advantage. Moga (2021) conducted a study on the impact of core competences on the operation of service-oriented businesses, using the example of Micro Cap Holdings. This research set out to answer the question of whether or not the implementation of core competencies would improve the performance of the service sector, with a focus on Micro Cap Holdings.…”

Stakeholder Engagement: Issues to Resolve for Sustainable Performance of Sugar Mills in Western Region, Kenya

“…This study used descriptive research design by allowing the respondents drawn from the 8 sugar mills in western Kenya to clearly describe their participation in the companies. The design was also adopted by Moga and Muathe (2020) as ideal in divulging information on the study subject. Musau, Muathe and Mwangi (2018) further noted that the design is suitable in giving features of elements and gives the researcher a chance to get the characteristics of the study element and test it.…”