Dynamic Capabilities, Organizational Resilience, Digital Transformation and Organizational Performance of Deposit-Taking Saccos in Nairobi County, Kenya

This study examined the influence of dynamic capabilities on the organizational performance of deposit-taking SACCOs in Nairobi County, Kenya, and tested the mediating role of organizational resilience and the moderating role of digital transformation. Given the importance of SACCOs and the various challenges they face from digital disruption and regulation, this study aims to investigate the impact of dynamic capabilities on the performance of SACCOs in Kenya’s Nairobi County. The survey design was used to collect data directly from the SACCO managers in the study areas. Out of the 240 questionnaires distributed, 210 yielded usable responses for the study, giving the study an 87.50% response rate. The data were collected using five-point Likert scales and analyzed using descriptive statistics, Pearson correlation, hierarchical regression, Hayes PROCESS Models 4 (mediation), 1 (moderation), 14 (moderated mediation), and 59 (second-stage moderated mediation). The findings of the study revealed that dynamic capabilities had a positive and significant effect on organizational performance. Furthermore, dynamic capabilities significantly enhanced the organizational resilience of these SACCOs, and the organizational resilience significantly improved their organizational performance. Additionally, digital transformation significantly predicted their organizational performance. The study also established that organizational resilience partially mediated the relationship between dynamic capabilities and the performance of these SACCOs. The index for moderated mediation was significant, as digital transformation significantly moderated the relationship between dynamic capabilities and the organizational performance of these SACCOs. The findings of this study showed that deposit-taking SACCOs in Nairobi County perform better if they have dynamic capabilities that translate to organizational resilience that is further enhanced through digital transformation. For better organizational performance by SACCO managers, there is the need to strengthen their dynamic capabilities and institute systems that improve their organizational resilience and align their digital systems with their organizational objectives.