An Empirical Analysis Of The Relationship Between Resource Fluidity And Firm Performance: A Perspective Of Tours And Travel Companies In Kenya

The competitiveness of a firm depends on the performance levels among other aspects. The measurement and evaluation of performance should adopt a structure that provides reliable indicators as evidence of the corporation’s goals while appraising its performance at the same time (Felizardo, Felix, & Thomaz, 2017). Organizations need to adopt policies and trends that revitalize and benefit their results and stabilize through performance measurement (Gabcanova, 2012). Organizational performance measurement is essential in the analysis of growth (Kennerley & Neely, 2003). The performance of a firm can be operationalized through non-financial and financial indicators. Morin and Audebrand (2003) observe that firm performance is often constrained to its financial aspect. The performance Abstract: All companies exist in an evolving environment that affects their performance. As a result, an adaptive strategy is necessary for the execution of result-oriented excellence. Due to the unanticipated changes in the environment, firms should be agile and not hesitate to pursue emerging opportunities and continuous improvement. The sustainable growth of the tourism industry is anchored in a constant and competitive supply of tours and travel services. The emerging markets require the tour firms to embrace innovation to pursue opportunities even in the event of market dynamics. The current study was aimed at establishing the relationship between resource fluidity and firm performance of tours and travel companies in Kenya. The literature review established conflicting findings on the effect of resource fluidity on firm performance. This study will be of great value to the management of tours and travel companies in Kenya, policymakers, and researchers, and academicians. The theoretical review focused on three major theories that include; Resource-based theory, and Dynamic Capabilities. A descriptive research design was adopted in the study. The target population for the study was the management staff of the four management levels of tours and travel companies in Kenya which included; senior management, middle level, functional level, and technical level. A proportionate stratified sampling technique was used to select the sample size of 176 from a target population of 586 units. A questionnaire was utilized to gather the required data and the data was analyzed by the use of simple linear regression models. The study concluded that there is a statistically significant relationship between resource fluidity on firm performance amongst tours and travel firms in Kenya. The study recommends a comparative study to be done to include other industries with a major focus on resource fluidity and organization performance. Besides, organizational activities should be reconfigured and resources redeployed adequately to boost internal organizational capabilities. The firm strategy needs to be dissociated from the organizational structure to ensure rapid resource deployment. Resource allocation should follow a regular segmental process and include incentives to facilitate a consistent alliance process.