Title: Dynamic capabilities and their implications for firm performance
Abstract: The dynamic capabilities view has attracted increasing attention in literature in recent
years. However, there are still some notable gaps in research. For instance, the
antecedents of dynamic capabilities are still not thoroughly understood and how
dynamic capabilities relate to firm performance remains unaddressed. Specifically,
insufficient research has integrated dynamic capabilities and substantive capabilities in
the study of firm performance. More empirical research in the dynamic capabilities field
is needed. Moreover, very few studies have investigated dynamic capabilities from a
marketing perspective.
The purpose of this study is to develop a model of dynamic capabilities, to better
understand the components of dynamic capabilities and their antecedents and
consequences. This study identifies three specific dynamic capabilities from a
marketing perspective, namely marketing agility, relational marketing capability, and
marketing integrative capability. Five resources and four processes are investigated as
important antecedents of dynamic capabilities. The mediating effect of dynamic
capabilities on the relationships between resources, processes and firm performance are
assessed. This study proposes two specific substantive capabilities: innovation
capability and corporate social responsiveness, and analyses the relationships among
dynamic capabilities, substantive capabilities and firm performance. The relationships
between dynamic capabilities and substantive capabilities are analysed under different
levels of market turbulence, a moderator of these relationships. Five propositions are
formulated to examine the relationships in the conceptual model.
Data were collected through personally administrated questionnaires. This study
sampled 1000 Chinese food processing firms. The majority of the respondents are
senior and middle level managers. A total of 518 usable questionnaires were obtained.
After refining the construct measures and ensuring the construct reliability and validity,
the hypotheses were analysed using hierarchical regression analysis, structural equation
modelling and moderation analysis.
The results show that most of the resources contribute to the development of two or
three types of dynamic capabilities. Dynamic capabilities are primarily not the mediators of the relationships between resources, processes and firm performance. Dynamic capabilities influence firm performance indirectly through substantive capabilities. The relationships between three dynamic capacities (marketing agility, relational marketing capability and marketing integrative capability) and innovation capability are stronger under low market turbulence.
The contribution of this study is to extend knowledge of dynamic capabilities by
developing and empirically testing an integrated model of dynamic capabilities and firm
performance. This study enriches the literature on the antecedents of dynamic
capabilities. It explores the mediating effects of dynamic capabilities on the
relationships between resources, processes and firm performance. This research tests
whether dynamic capabilities directly or indirectly (through substantive capabilities)
influence firm performance. This study investigates the moderating effects of market
turbulence. Managers can benefit from this study by focusing on the resources and
processes critical to developing specific dynamic capabilities. By advancing dynamic
capabilities, firms develop and renew substantive capabilities leading to improved firm
performance.
Publication Year: 2015
Publication Date: 2015-01-01
Language: en
Type: dissertation
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot