Paper short abstract:

This paper explores the particular entrepreneurial capabilities displayed by successful firms in the food processing equipment subsector as a case study of capabilities of manufacturing firms in developing countries.

Paper long abstract:

While a fair amount of research has identified the constraints faced by African manufacturing firms, few studies have examined the strengths of African firms. Kenya's manufacturing sector, though small by international standards, is home to a number of successful firms owned and/or managed by capable entrepreneurs. This paper explores the particular entrepreneurial capabilities displayed by successful firms in the food processing equipment subsector. The discussion of Kenya's equipment firms rests on a model of enterprise development that takes as a starting point the resource-based view of the firm. It draws heavily on literature that considers capabilities as resources that make one firm differ from another. The study's research design combines a survey of 19 food processing equipment firms with four qualitative case studies that provide an in-depth understanding of entrepreneurial capabilities and their relationship to firm success. An overwhelming majority of firms attribute their success to the vision and leadership of the entrepreneur. The case studies revealed qualities such as flexibility, adaptability, and resilience to be key entrepreneurial capabilities required by firms in this sector. The paper highlights unique capabilities of equipment firms, including the ability to design products and processes. The paper largely upholds the resource-based view of the firm, but finds firms' perspectives on capabilities to be more differentiated than expected from the resource-based view. In particular, the findings emphasise the 'softer' capabilities of entrepreneurs, which are evident in the knowledge-based version of resource-based view. The paper concludes with some implications for theory, policy, and further research.