Integrating Dynamic Capabilities and Strategic Management for Effective Digital Transformation:

Abstract

The study examined the role of dynamic capabilities (DC) and strategic quality management (SQM) in enhancing digital transformation (DT) among firms in Kenya. Many organisations in Kenya continue to struggle with realising effective digital transformation. This is often due to fragmented technology adoption, limited organisational adaptability and poor alignment between DC and SQM. Therefore, there is a growing need for an integrated approach. Guided by this gap, the study sought to demonstrate how the combined application of dynamic capabilities and strategic quality management can enhance digital transformation across organisations in Kenya. This study conducted a systematic literature review (SLR) of publications from 2016 to 2025 to examine how dynamic capabilities (DC) and strategic quality management (SQM) influence the digital transformation (DT) of firms in Kenya. The review analysed nine empirical and mixed method studies across sectors such as banking, manufacturing, telecommunications and SMEs. The findings show that dynamic capabilities, specifically sensing, seizing and reconfiguring, play a foundational role in enabling firms to anticipate technological trends, exploit digital opportunities and restructure operations for effective digital integration. However, many SMEs demonstrate weak sensing and seizing capabilities due to limited resources and managerial capacity, resulting in slower digital adoption. The analysis further revealed that SQM practices such as leadership commitment, standardisation, continuous improvement and customer-centred approaches significantly facilitate DT. Strong leadership was found to enable vision setting and resource mobilisation, while quality systems such as ISO standards enhance operational efficiency and support technology uptake. Integrating DC and SQM was identified as a key driver for seamless, sustainable digital transformation across organisations. The study concluded that strengthening both dynamic capabilities and quality management systems is essential for improving digital competitiveness in Kenyan firms. The study recommended that firms should invest in capability development, enhancing leadership for DT, institutionalising SQM practices, leveraging customer insights and providing targeted support for SMEs to overcome capability gaps.