The Role of Agility in Moderating the Relationship Between the Employee Engagement and Performance of Manufacturing Firms in Nairobi County
Main Article Content
Keywords
Organization, agility, performance, employee engagement, manufacturing firms
Abstract
Employee engagement has been highly recognized as one of the important determinants of organizational performance. High levels of engagement are linked with higher productivity, innovation and employees' retention making it a key focus for organizations. However, many manufacturing firms in Nairobi County are still experiencing difficulties in achieving and sustaining optimal performance levels. Organizational agility is the organization's ability to respond quickly and effectively to changes in the environment has emerged as a potential moderating factor that can enhance the impact of employee engagement on performance. Unless organizations know how agility might interact with employee engagement to influence performance, they cannot exploit their human capital and adaptive capacities fully. Addressing this gap is key for manufacturing firms in Nairobi County to remain competitive and sustainable in an increasingly volatile business. This study, therefore, seeks to investigate the moderating effect of agility on the relationship between employee engagement and the performance of selected manufacturing firms in Nairobi County. The study was anchored on the Resource-Based View and Dynamic Capabilities Theories. Using explanatory research design, the study target population was 1,072 registered manufacturing firms in Nairobi County, with a sample size of 251 firms. Managers of these firms were selected as respondents through a simple random sampling technique. Primary data were collected using closed-ended questionnaires. Data were analyzed using SPSS version 26, employing descriptive statistics (mean, standard deviation, kurtosis, skewness) and inferential statistics, including correlation and hierarchical regression models. Correlation analysis showed that agility has a strong, statistically significant positive relationship with firm performance (r = .607, p = .000), while employee engagement exhibited a weak and non-significant relationship with performance (r = .082, p = .196). The findings further revealed that employee engagement (β= -1.769, p>0.05) does not have a significant effect on firm performance. Moderation results indicated that agility significantly moderates the relationship between employee engagement (β= -1.769, p>0.05, ΔR2=0.016) and firm performance. Manufacturing firms in Nairobi County should invest in developing and promoting organizational agility by implementing flexible structures, encouraging innovation, and enhancing their ability to respond swiftly to environmental changes, thereby maximizing the performance benefits of employee engagement.
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Kimeli Korir, Department of Management Science, School of Business and Economics, Moi University, P. O. Box 3900 - 30100, Kesses, Eldoret, Kenya
Department of Management Science, School of Business and Economics, Moi University, P. O. Box 3900 - 30100, Kesses, Eldoret, Kenya
David Kosgei , Department of Management Science, School of Business and Economics, Moi University, P. O. Box 3900 - 30100, Kesses, Eldoret, Kenya
Department of Management Science, School of Business and Economics, Moi University, P. O. Box 3900 - 30100, Kesses, Eldoret, Kenya
Rose Boit, Department of Management Science, School of Business and Economics, Moi University, P. O. Box 3900 - 30100, Kesses, Eldoret, Kenya
Department of Management Science, School of Business and Economics, Moi University, P. O. Box 3900 - 30100, Kesses, Eldoret, Kenya