Mediating Role of Dynamic Capabilities on the Relationship Between Organizational Ambidexterity and Firm Performance of Supermarkets in Kenya

Abstract:

Several businesses have established successful strategies in order to move their operations toward the desired future position. However, problems with performance have made it difficult to achieve the suggested future position. The possibility to grow and expand has been found in some supermarkets that embrace organizational ambidexterity. Existing research suggests that supermarkets poor performance can be attributed to informal retail competition, a lack of resource exploitation and exploration, ongoing employee training and development, and consumer preference for convenience because most informal retail locations are more easily accessible. Dynamic capabilities are a firm's ability to adapt and respond to changing environments effectively. They involve processes, routines, and skills that enable an organization to identify, assess, and seize opportunities or respond to threats. Examples of dynamic capabilities in the supermarket industry might include the ability to quickly adjust product offerings in response to changing customer preferences or rapidly reconfigure supply chain operations in response to disruptions. Dynamic capabilities can mediate the relationship between organizational ambidexterity and supermarket performance by enhancing exploration and exploitation. Organizational ambidexterity involves both exploration and exploitation activities. Dynamic capabilities play a crucial role in facilitating these activities. Supermarkets operate in a dynamic and competitive environment. Dynamic capabilities help them adapt to changing market conditions. For example, if a supermarket identifies a shift in customer preferences towards organic products, dynamic capabilities can help in quickly sourcing and stocking these products, thereby improving performance.