MANAGEMENT CAPABILITIES ON PERFORMANCE OF MICROFINANCE BANKS IN KENYA

Abstract

Financial institution’s role in economic development and sustainability ought to be supported so as to enhance performance. Theoretical arguments such as resource-based view allude that organization performance is contingent to resources that may either be tangible or intangible. Hence, the current study evaluated the effect of management capabilities on performance of micro finance banks in Kenya. The study was based on dynamic capabilities theory. Descriptive research design was applied and primary data sourced through self-administered questionnaires. Descriptive statistics and simple regression analysis analyzed the data. It was documented that there was a positive and significant effect of management capabilities and firm performance of micro finance banks in Kenya.