Role of Dynamic Capabilities in Influencing Performance of Mid-Level Colleges in Nakuru County, Kenya

Mid-level colleges in Kenya are expected to respond quickly to competency-based education and training (CBET) reforms, technological change and shifting labour-market demands, yet evidence on the capabilities that enable them to do so remains limited. This study examined the role of dynamic capabilities in influencing the performance of mid-level colleges in Nakuru County, Kenya. Specifically, it assessed the influence of sensing capability, innovation capability, organizational learning and resource reconfiguration on performance, operationalized through flexibility, responsiveness, speed and adaptability. The study was anchored on Dynamic Capabilities Theory and supported by the Resource-Based View, Organizational Learning Theory and Strategic Agility Theory. A descriptive survey design was adopted. The 40 accredited mid-level colleges in the County formed the unit of analysis and were studied through a census, while three key informants involved in institutional planning were purposively selected from each college, giving 120 respondents. Data were collected using a structured five-point Likert-scale questionnaire whose construct validity (KMO = 0.831) and reliability (overall Cronbach's α = 0.823) were confirmed through a pilot study. A total of 101 questionnaires were returned (84.17%) and analysed using descriptive statistics, Pearson correlation and multiple linear regression. The four dynamic capabilities jointly explained 53.9% of the variation in performance (R² = 0.539; F(4, 96) = 28.03; p < 0.001). Organizational learning had the strongest influence (β = 0.407, p < 0.001), followed by resource reconfiguration (β = 0.279, p = 0.003), innovation capability (β = 0.165, p = 0.039) and sensing capability (β = 0.161, p = 0.018); all four null hypotheses were therefore rejected. Colleges were relatively strong in idea exchange, capability restructuring and environmental scanning, but weaker in stakeholder needs assessment, innovative pedagogy, investment in staff competencies and process realignment, while performance itself was only moderate (mean = 3.26), particularly in timely implementation and transformation of practices. The study concludes that embedding dynamic capabilities in institutional planning and decision-making improves the capacity of colleges to adapt and compete, and recommends structured environmental intelligence systems, curriculum and pedagogical innovation, funded staff development and knowledge management, and flexible budgeting linked to process redesign.