Firm Capabilities and Performance of Parastatals in Kenya: A Case Study of Kenya Ports Authority

The study evaluated the relationship between various company capabilities and the performance of the Kenya Ports Authority (KPA), with a focus on how managerial, technological, human resource, and service quality capabilities affect organizational success. A descriptive design was employed, utilizing the Resource-Based View (RBV) theory, Technology Acceptance Model (TAM), Human Capital Theory (HCT), and the SERVQUAL model. The study analyzed a population of 6,655 support staff, 12 senior managers, and 45 middle-level managers at KPA. The sample consisted of 374 support employees, three middle-level managers, and one senior manager. Data was collected through questionnaires and assessed using both descriptive and inferential statistics. The results accounted for 70% of the variance, indicating that KPA's performance was significantly influenced by all four capabilities. Technological capabilities had the greatest positive influence (β=0.503, p=0.000), followed by managerial (β=0.204, p=0.000), service quality (β=0.102, p=0.002), and human resource capabilities (β=0.073, p=0.021). The study concludes that the performance of the Kenya Ports Authority is significantly influenced by technological, managerial, service quality, and human resource capabilities, with technological capabilities having the greatest impact. The study recommends that KPA continue to invest in technological development, enhance management practices, refine human resource strategies, and maintain high service quality standards to further boost organizational performance and success. Keywords: Firm capabilities, Parastatal performance, Managerial capabilities, Technological capabilities, Service quality