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Dynamic capabilities and organizational performance: The mediating role of innovation

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  • Zhou, Steven S
  • Zhou, Abby J
  • Feng, Junzheng
  • Jiang, Shisong

Abstract

How firms’ dynamic capabilities lead to their competitive advantage and improved firm performance has been a core issue and full of debates. In this research, we theorize that dynamic capabilities, which could be defined by three distinct dimensions (sensing capability, integration capability, and reconfiguration capability), facilitate different types of innovation that in turn improve firm performance. Based on a sample of 204 Chinese firms, results from partial least squares structural equation modeling analyses generally support our arguments despite some nuanced differences existing among different dimensions of dynamic capabilities. This study contributes to dynamic capabilities literature by reducing the scarcity of empirical research and by uncovering the mechanisms through which dynamic capabilities influence firm performance.

Suggested Citation

  • Zhou, Steven S & Zhou, Abby J & Feng, Junzheng & Jiang, Shisong, 2019. "Dynamic capabilities and organizational performance: The mediating role of innovation," Journal of Management & Organization, Cambridge University Press, vol. 25(5), pages 731-747, September.
    • Handle: RePEc:cup:jomorg:v:25:y:2019:i:05:p:731-747_00
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    Cited by:

    1. Dr. Aham Edward Kanuto, 2024. "Examining the Influence of Organizational Learning on Employee Dynamic Capability and Employee Performance within NGOs and Private Enterprises in South Sudan," International Journal of Science and Business, IJSAB International, vol. 37(1), pages 1-16.
    2. Magdalena Pichlak, 2021. "The Drivers of Technological Eco-Innovation—Dynamic Capabilities and Leadership," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    3. Ainul Mohsein Abdul-Mohsin & Hasliza Abdul Halim & Noor Hazlina Ahmad, 2020. "Determinants of Innovative Performance: The Case of an Emerging Country SMEs," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 3-19.
    4. Wang, Nan & Wan, Jiahao & Ma, Zhenzhong & Zhou, Yan & Chen, Jin, 2023. "How digital platform capabilities improve sustainable innovation performance of firms: The mediating role of open innovation," Journal of Business Research, Elsevier, vol. 167(C).
    5. Mostafa A. Ali & Nazimah Hussin & Hossam Haddad & Dina Alkhodary & Ahmad Marei, 2021. "Dynamic Capabilities and Their Impact on Intellectual Capital and Innovation Performance," Sustainability, MDPI, vol. 13(18), pages 1-32, September.
    6. Eltigani Ahmed & James Kilika & Clare Gakenia, 2021. "The conceptualization of dynamic resource orchestration framework as an anchor for organizational resilience," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(7), pages 53-61, October.
    7. Tortora, Debora & Chierici, Roberto & Farina Briamonte, Massimiliano & Tiscini, Riccardo, 2021. "‘I digitize so I exist’. Searching for critical capabilities affecting firms’ digital innovation," Journal of Business Research, Elsevier, vol. 129(C), pages 193-204.
    8. Henrique Faverzani Drago & Gilnei Luiz Moura & Luciana Santos Costa Vieira Silva & Claudimar Pereira Veiga & Fabíola Kaczam & Luciana Peixoto Santa Rita & Wesley Vieira Silva, 2023. "Reviewing the relationship between organizational performance, dynamic capabilities and strategic behavior," SN Business & Economics, Springer, vol. 3(1), pages 1-22, January.
    9. Weihong Xie & Qian Zhang & Yuyao Lin & Zhong Wang & Zhongshun Li, 2024. "The Effect of Big Data Capability on Organizational Innovation: a Resource Orchestration Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3767-3791, March.
    10. Matthew Quayson & Chunguang Bai & Lihua Sun & Joseph Sarkis, 2023. "Building blockchain‐driven dynamic capabilities for developing circular supply chain: Rethinking the role of sensing, seizing, and reconfiguring," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4821-4840, November.
    11. Rui Silva & Cidália Oliveira, 2020. "The Influence of Innovation in Tangible and Intangible Resource Allocation: A Qualitative Multi Case Study," Sustainability, MDPI, vol. 12(12), pages 1-22, June.
    12. Akter, Shahriar & Hossain, Md Afnan & Sajib, Shahriar & Sultana, Saida & Rahman, Mahfuzur & Vrontis, Demetris & McCarthy, Grace, 2023. "A framework for AI-powered service innovation capability: Review and agenda for future research," Technovation, Elsevier, vol. 125(C).
    13. Shaham Saleem & Hafsa Bashir, 2024. "Environmental corporate social responsibility and green dynamic capability: The moderating role of slack resources," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3379-3394, July.
    14. Ana Judith Paredes Chacín & Sebastian Diaz Bejarano & Freddy Marín-González & Elmer Vega-Ramírez, 2024. "Relationship between knowledge transfer and sustainable innovation in interorganizational environments of small and medium-sized enterprises," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 20(1), pages 47-64.
    15. Owais Khan & Tiberio Daddi & Fabio Iraldo, 2020. "The role of dynamic capabilities in circular economy implementation and performance of companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 3018-3033, November.
    16. Ibrahim Rashed AlTaweel & Sulieman Ibraheem Al-Hawary, 2021. "The Mediating Role of Innovation Capability on the Relationship between Strategic Agility and Organizational Performance," Sustainability, MDPI, vol. 13(14), pages 1-14, July.
    17. Borui Yan & Bo Yao & Qian Li & Qianli Dong, 2022. "Study on the Impact of Supply Chain Dynamic Capabilities on Long-Term Performance of Enterprises," Sustainability, MDPI, vol. 14(19), pages 1-18, September.
    18. Lijie Feng & Guo Qin & Jinfeng Wang & Ke Zhang, 2022. "Disruptive Innovation Path of Start-Ups in the Digital Context: The Perspective of Dynamic Capabilities," Sustainability, MDPI, vol. 14(19), pages 1-18, October.
    19. Pablo Martínez de Miguel & Carmen De-Pablos-Heredero & Jose Luis Montes & Antón García, 2022. "Impact of Dynamic Capabilities on Customer Satisfaction through Digital Transformation in the Automotive Sector," Sustainability, MDPI, vol. 14(8), pages 1-19, April.
    20. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2023. "Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures," International Business Review, Elsevier, vol. 32(4).

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