Abstract
The vehicle distribution industry in Kenya has experienced notable performance challenges, The vehicle distribution industry in Kenya has experienced increasing performance challenges due to intensified competition, changing customer preferences, and evolving market dynamics, highlighting the need for firms to strengthen their strategic capabilities. This study examined the effect of financing capabilities and marketing capabilities on the organizational performance of licensed new vehicle distributors and assemblers in Kenya. A descriptive research design was adopted. The study targeted 341 senior management employees drawn from 31 licensed new vehicle distribution and assembly firms, from which a sample of 184 respondents was selected using purposive sampling. Primary data were collected using a structured questionnaire and analyzed using the Statistical Package for the Social Sciences (SPSS) version 24. Descriptive statistics were used to summarize the data, while Pearson correlation and multiple regression analyses were employed to determine the relationship between the study variables. The findings revealed that financing capabilities had a strong positive and statistically significant relationship with organizational performance (r = 0.772, p < 0.001) and exerted a significant positive effect (β = 0.382, p < 0.001). Similarly, marketing capabilities recorded the strongest positive correlation with organizational performance (r = 0.783, p < 0.001) and a significant positive effect (β = 0.340, p < 0.001). The study concludes that financing and marketing capabilities are critical strategic capabilities that significantly enhance the organizational performance of licensed new vehicle distributors and assemblers in Kenya. The study recommends that firms strengthen their financing systems by improving access to capital and financial planning while investing in innovative marketing capabilities that enhance customer acquisition, retention, and competitive positioning. Future research should examine additional strategic capabilities and external environmental factors that may influence organizational performance in the vehicle distribution industry.
Keywords: Financing capabilities, marketing capabilities, organizational performance, strategic capabilities, vehicle distributors, Kenya.