Relationship between Enterprise Capabilities and Value Creation in Kenyan Owned Enterprises

Abstract

Mining industry in countries such as Russia, Ukraine, United States of America, and Canada contribute highly to their GDP. In Africa countries such as South Africa, Namibia, and Tanzania, mining industry is continuously performing well. Studies show that Kenya has various types of gemstones, petroleum and minerals. However, reports indicate that Petroleum and Mining contributes less than 1% to GDP. This confirms that there are clear hindrances to value creation processes. The objective of this study was to establish the relationship between capabilities and value creation in the Kenyan owned mining enterprises. The study was a cross sectional survey. A questionnaire was used to collect data from Kenyan owned mining enterprise, where both semi-structured and open-ended questions were used. A quantitative approach was employed in data analysis. The findings showed that there is a statistically significant relationship between capabilities and value creation in Kenyan owned enterprises in mining industry in Kenya. The study concluded that Kenyan owned enterprises, human capital capabilities and prospecting knowledge capabilities have an association with value creation.