Effect of employees’ dynamic capability on performance: The case of Ethiopian brewery industries

Abstract

 The study aimed to investigate the effect of Employees’ dynamic capability on performance with a special focus on Ethiopian brewery industries. Employees’ dynamic capability is measured based on the sensing, seizing and reconfiguring capabilities of the employee. To effectively measure the effect of the dynamic capability constructs on employees' performance in the brewery industries, the study used a purely quantitative methodology and the data collection instrument is a close-ended questionnaire. Accordingly, a total of 381 questionnaires were distributed and twenty of the responses were discarded due to incomplete response. Data analysis is done through quantitative techniques by using smartpls-SEM (Structural Equation Modeling and the validity and reliability of data is checked via both convergent and discriminant validity and reliability. Based on the evidence collected, the findings of the study revealed that both seizing and reconfiguring employee capabilities have a significant effect on the performance of the employees. However, the result also concluded that sensing capability doesn’t have a significant effect on the performance of employees unless additional leadership and managerial skills are added to the management staff. Based on the findings, the study recommended that managers have to work towards advancing seizing and reconfiguring capabilities to boost the performance of their employees, which in turn has a remarkable effect on the overall performance of the industry. However, if managers want to advance the employees performance through sensing capability, they have to work towards dynamic leadership and situational management.