Mediating effect of strategic orientation on the relationship between dynamic capabilities and competitive advantage of small and medium retail enterprises in Kenya

According to the Vision 2030, Kenya intends to become a Globally Competitive and Prosperous economy.It aims to transform Kenya into a newly industrializing, "middle-income country providing a high quality life to all its citizens by the year 2030".Remarkable transformation has seen the entry of large shopping malls examples the Sh450 million shopping mall developed by Oasis Capital having 300 parking spaces, several supermarkets, cinema halls, conference centers and offices plus the coming soon multinational Scandinavian supermarket chain, IKEA, which specializes in furniture.Fierce competition from mass merchandisers, changing demographics and shifting consumer purchasing patterns is threatening the very survival of the local small and medium retailers with statistics already indicating a slow decline in their performance.The strengths of an enterprise are grounded in its resources, capabilities and competencies that helps it competitive advantage based on-superior efficiency, innovation and quality and customer responsiveness.This proposes to examine how strategic orientation mediates dynamic capabilities of sensing, seizing reconfiguring and competitive advantage relationships in small and medium retail enterprises facing dynamic situations especially from large retail enterprises.This study will specifically focus on three hypothesized dynamic capabilities, which are; sensing and seizing of market opportunities and reconfiguring the resource base, the mediating effect of competition orientation and customer orientation for competitive advantage among retail SMEs within a developing country given the business environmental pressures.