Organizational Resources, Capabilities On Value Creation In Kenyan Owned Mining Mining Enterprises

Abstract

This study investigated the relationship on resources and capabilities and their relationship with value creation. The moderating variable for this study is legal factors. The study was guided by Resource-Based View of a Firm and the associated theories: Resource Dependency Theory including Value Chain Analysis. This study purposed to ascertain whether Kenyan owned enterprises relationship of resources and capabilities on value creation and how legal factors moderated this relationship. Resources that were studied included finances, and machines and equipment; while capabilities include human capital and prospecting knowledge. A survey on mining enterprises owned by Kenyans was conducted using semi-structured questionnaires to facilitate the collection of primary data in the field. Taita/Taveta, Kwale, Kitui, and Kajiado counties were sampled. The study sample size was 164 out of 277 mining enterprises in Kenya obtained from the Ministry of Mining. A positivism philosophical approach was used to guide data collection. Descriptive measurements were employed to facilitate the description of resources, capabilities, legal factors and value creation in the enterprises while inferential statistics were employed in making inferences about the effect of resources and capabilities on value-creation in the Kenyan mining enterprises. Data was cleaned, edited, coded and categorised before entering it in the computer manually with the aid of SPSS 22 data editor. Descriptive findings of this study show that Kenyan owned enterprises do not have adequate financial and machines and equipment resources. The linearity relationship of collective independent variables and value creation is positive. However, the study established existence of a weak statistically significant relationship between financial resources. Statistically relationship between machines and equipment and value creation. Human capital and knowledge of prospecting are adequate and have statistically significant relationship with value creation. Further findings show that legal factors acquired weak moderating effect on the affiliation among the combined effect of resources and capabilities on value creation. Finding of this study show that most of the Kenyan owned mining enterprises are guided by tacit knowledge in prospecting process, through extraction process. This can be improved by training employees on scientifically approved methods of prospecting and mining. A study to establish strategies applied by Kenyan owned mining enterprises to extract minerals without enough financial resources and machines can be undertaken. A similar research can be replicated in other counties that undertake mining activities to establish the relationship of resources and capabilities on value creation in Kenyan owned enterprises. A study on multinationals can be undertaken to find out the relationship between resources and capabilities on value creation in such companies. A study on women and value creation in mining industry in Kenya is recommended. Findings of this study show that tacit knowledge is applied in the process of prospecting, and extraction of the gemstones and minerals. Capture and documentation of this knowledge is important for future use. Safety of miners is crucial in protecting them from harm. Availability of training programs and affordable safety equipment through physical equipment is key.