Mediating Effect of Dynamic Capabilities on the Relationship between Strategic Firm Resources and Competitiveness of MICE Destinations

Abstract

Dynamic capability view theory stipulates that an organization's basic competencies should be used to create short-term competitive positions that can be developed into long-term competitive advantage. This study aimed at establishing the mediating effect of dynamic capabilities on the relationship between strategic firm resources and competitiveness of Meetings, Incentives, Conference and Exhibition (MICE) destinations in Nairobi and South-Rift circuits. The study used explanatory research design with a purposive sampling technique to arrive at a sample size of 107. Closed-ended questionnaires were utilized during data collection with key respondents being marketing and /operations managers. Descriptive and inferential statistics were used to analyse data. Findings revealed that dynamic capabilities did not significantly mediate the relationship between strategic firm resources and competitiveness of MICE destinations in Nairobi and South-Rift circuits, however dynamic capabilities had direct significant effect on competitiveness. Consequently, this study proposes a path dependence process for MICE destinations that will enable them adapt to rapidly changing competitive environment by marshalling, building, integrating and reconfiguring their resources and capabilities portfolio.