Effect of Technical Competence on Firm Performance

Abstract

The objective of the study was to determine the effect of technical competence on the performance of firms listed on the Nairobi Securities Exchange and the corresponding hypothesis was formulated and tested. The study targeted Human resource managers of each of the 64 firms listed on the Nairobi Securities Exchange as at December, 2014, and 34 of them responded. The study adopted the positivist research philosophy and a descriptive survey design. SPSS Version 21 was used to analyze data using regression analysis. Research findings from the test of the hypothesis established that technical competence has positive and significant effect on firm performance. The study finding supports the Resource-Based View and Knowledge Space Theory which underscore the crucial role of technical competence in firm performance. The study recommends further investigation of the study variables in non-governmental organizations, academic institutions and churches.