Abstract: This study empirically verified the effect of environmental dynamism on changes in the dynamic and operational capabilities of an enterprise and its innovation performance. With the aim of quantification, the concept and definition of each capability were defined as a hierarchical structure of dynamic and operational capabilities. Five research hypotheses were established through prior research on dynamic capabilities, operational capabilities, innovation performance, and environmental dynamism. For empirical analysis, the hypotheses were verified based on surveys from 300 Korean manufacturing companies. It was shown that Dynamic capabilities had a positive relationship with operational capabilities and operational capabilities had a positive relationship with innovation performance. And it was shown that operational capabilities had a positive relationship with radical innovation in business groups with high environmental dynamism while operating capabilities had a positive relationship with gradual innovation in business groups with low environmental dynamism. Also, the moderating effect of environmental dynamism was not significant in the relationship with dynamic capabilities on operational capabilities. This study is meaningful in that it lays the groundwork for empirically verifying the dynamic capabilities of an enterprise by embodying its dynamic capabilities and operational capabilities into processes, and verifies the effect of environmental change on its capabilities and innovation performance. And it has implications to suggest how an enterprise should transform its capabilities to sustain its competitive advantage in a rapidly changing environment.
Publication Year: 2020
Publication Date: 2020-11-30
Language: en
Type: article
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