Effect of Operational Capability on Performance of Airkenya Express Limited in Nairobi City County, Kenya

Abstract

Organization performance essentially encompasses three outcomes which include financial, product market performance and stakeholders' return in terms of investment returns.Richard (2009) also affirmed that performance evaluation can be measured by the efficiency and effectiveness realized by achievement of a firm's set objectives.Organization performance can also be manifested through financial performances which include investment returns, sales growth, profit margin, effectiveness and performance of business (Richard, 2009).Operational capability relates to the ability to align firm resources and technologies with the organization's vision and customer focus, and the ability to execute these processes in an effective and efficient manner.They commission an organization to execute its processes and operations on a continuous basis with the same technique and scale in support of domineering products and services for target consumer market (Helfat & Winter, 2007).According to Takahashi, Bulgacov and Giacomini (2017) operational capabilities consists of the skills and information that are necessary to operationalize, maintain and repair technology and business processes for efficient and effective running of the firm's activities.In addition, operational capability has been incorporated into conceptual models of research on organizational capabilities and performance by studies carried out by Protogerou (2011) and Giacimini (2013) hence forming a basis for its adoption on this study.The operational wastefulness and inefficient utilization of resources characteristic has been associated with poor performance of a number of airlines which has been advanced by competition by the key Abstract: In the recent years, performance of the airline industry globally, regionally and locally has been unstable as a result of the dynamism of the environmental parameter that characterises this industry.Organizations in this industry therefore ought to withstand the market and industry dynamics, if at all they have to attain remarkable success in performance.This research investigates the effect of operational capability on the performance of AirKenya Express Limited, Nairobi City County, Kenya.The three main theories on which this report was established on were, resource-based view theory, organization learning theory and dynamic capabilities theory.Two research designs that were employed were cross sectional research and explanatory designs.The target population was valid employees of AirKenya Express Limited, and in particular those based at its headquarters at Wilson Airport Nairobi and those in other outstations that are based in Kenya.The selection of the respondents of this study utilized stratified proportionate sampling.This was on the basis of departments including administration, inflight crew, customer service, finance, marketing, reservation, operations and engineering.The pilot study preceded actual data collection and the participants were excluded from the research.In data collection, the primary data collection was done using semi-structured questionnaires issued using drop and pick method while secondary data collection was by reviewing relevant reference materials.Secondary data was purposed to endorse the collected primary data.The descriptive statistics were presented in the form of mean, standard deviation, co-efficient variations, frequencies and percentages.Conclusions and generalizations were made based on the inferential statistics done through multiple regression analysis.The study found that operational capability has a positive effect performance.The operations, reservations and customer care managers and their respective staff should offer and embrace effective customer service, update customers on new routes, products and services regularly.This will collectively improve AirKenya Express Limited's performance.

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