Technological Capability and Sustainability Performance of Medium and Large Manufacturing Firms in Nairobi County the Mediating Role of Innovativeness

This paper empirically examines the influence of technological capability on the sustainability performance of medium and large manufacturing firms in Nairobi County, Kenya, and assesses the mediating role of innovation in this relationship. The study used a sample of 302 manufacturing firms and employed Hayes’ PROCESS macro (Model 4) to test the direct and indirect effects among the variables. Regression analysis was used to estimate the relationships, and bootstrapping with 5,000 samples was used to confirm the significance of the indirect effect. The results revealed that technological capability has a significant and positive direct effect on sustainability performance. Innovation was also found to positively influence sustainability performance and significantly mediate the relationship between technological capability and sustainability performance. Additionally, technological capability significantly predicted innovation. These findings suggest that firms with higher technological capabilities are more likely to achieve superior sustainability outcomes when such capabilities are deployed through innovative practices. The study provides valuable insights for managers, policymakers, and industry stakeholders in the manufacturing sector. Firms should prioritize investments in technological infrastructure and innovation capacity to enhance sustainable performance. Policymakers may consider developing incentives and policies that support technology adoption and innovation in manufacturing, particularly in Nairobi County. This study contributes to the literature by empirically validating the mediating role of innovation in the relationship between technological capability and sustainability performance in the context of medium and large manufacturing firms in Nairobi County. It highlights the importance of leveraging internal capabilities to drive innovation and sustainability outcomes in industrial enterprises.