The moderating effect of demographic characteristics on the relationship between strategic capabilities and firm performance in women‐owned entrepreneurial ventures in Nairobi, Kenya

• Author: Michael Korir,Margaret White,Joyce Kimosop
• DOI: http://doi.org/10.1002/cjas.1399
• Published date: 01 September 2016
• Date: 01 September 2016

The moderating effect of demographic

characteristics on the relationship between

strategic capabilities and firm performance in

women-owned entrepreneurial ventures in

Nairobi, Kenya

Joyce Kimosop*

Moi University

Michael Korir

Moi University

Margaret White

Oklahoma State University

Abstract

This study is motivated by the need to understand the

determinants of performance in women-owned enterprises.

We examine the relationship between strategic capabilities

and f‌irm performance with demographic characteristics as

moderators in women-owned enterprises in Nairobi,

Kenya. Results show that strategic capabilities have a

signif‌icant effect on the overall performance. Further, IT

capabilities and technological capabilities have a positive

and signif‌icant relationship with performance. Only age

has a negative and signif‌icant moderating effect. We

recommend enhancement of technological capabilities among

women entrepreneurs so that they can better direct their

capabilities toward f‌irm performance. Copyright © 2016

ASAC. Published by John Wiley & Sons, Ltd.

Keywords: strategic capabilities, women entrepreneurship,

f‌irm, performance

Résumé

Cette étude est motivée par le désir de mieux comprendre les

déterminants de la performance dans les entreprises

appartenant à des femmes. À partir d’entreprises

appartenant à des femmes basées à Nairobi au Kenya,

l’étude examine la relation entre les capacités stratégiques

et la performance en utilisant les caractéristiques

démographiques comme modératrices. Les résultats

montrent que les capacités stratégiques ont un impact

important sur la performance globale. Par ailleurs, les

capacités en IT et les capacités technologiques entretiennent

une relation positive et signif‌icative avec la performance.

Seul l’âge a un effet modérateur négatif et signif‌icatif sur

la performance. Nous proposons aux femmes entrepreneures

d’améliorer leurs capacités technologiques af‌in de mieux

orienter leurs aptitudes vers la performance de leurs

entreprises. Copyright © 2016 ASAC. Published by John

Wiley & Sons, Ltd.

Mots-clés : capacités stratégiques, entrepreneuriat féminin,

f‌irme, performance

Women represent a signif‌icant portion of entrepreneurs

who impact the global economy. In both developed and de-

veloping economies, the growth and participation of women

in entrepreneurship has been noted. Women’s participation

has contributed signif‌icantly to the socio-economic growth

of their respective countries by introducing innovations as

well as creating employment and wealth. The phenomenon

of women entrepreneurship has thus gained importance in

both practice and academia (Jennings & Brush, 2013;

Verheul, Van Stel, & Thurik, 2006)

Much research on women entrepreneurship has

focused on individual characteristics and gender-specif‌ic

barriers to entrepreneurship as predictors of f‌irm perfor-

mance (Catley & Hamilton, 1998). These studies have

*Please address correspondence to: Dr. Joyce Kimosop, Department of

Marketing and Management, Moi University, P.O. Box 3900 - 3100,

Eldoret, Kenya. Email: joycekomen@yahoo.com

Canadian Journal of Administrative Sciences

Revue canadienne des sciences de l’administration

33: 242–256 (2016)

Published online in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/CJAS.1399

Can J Adm Sci

33(3), 242–256 (2016)Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd. 242