Manufacturing companies operate in a dynamic environment and require to continuously cultivate firm-level strategies for performance improvement. Currently, the main discussion in social sciences has centred on the links between firm-level strategy, capabilities and performance with varied result. To investigate this connections, we gathered and analysed data from 125 Large-Scale Food and Beverage Manufacturing Companies (FBMC) in Kenya. The study covered a two year period. The paper tested the hypothesis that firm capabilities have a significant effect on the relationship between firm-level strategy and performance using regression analysis. The results supported the hypothesis with human capital and research exhibiting the highest moderation. These findings will contribute to government policy development for the sector’s expansion and competitiveness and management practises on resource utilization.
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