IDEAS home Printed from https://ideas.repec.org/a/ist/ibsibr/v50y2021i2p197-214.html
   My bibliography  Save this article

Linking Dynamic Capabilities and Market Performance of SMEs: The Moderating Role of Organizational Agility

Author

Listed:
  • Bulent Akkaya

    (Manisa Celal Bayar University, Ahmetli Vocational School, Department of Office Management and Executive Assistant, Turkey)

  • Qaisar Iqbal

    (Center for China-India-Pakistan Studies, Sichuan University of Science and Engineering, Zigong, Sichuan, China)

Abstract

The purpose of this study is to highlight the moderating role of organizational agility (OA) between dynamic capabilities (DC) and market performance (MP) in SMEs in Turkey and Malaysia. The data was collected from 198 managers in both countries. The data was analyzed by Partial Least Squares Structural Equation Modelling (PLS-SEM). The research has found that there is a significant relationship between organizational agility and market performance, dynamic capabilities and market performance. The finding also reveals that organizational agility has a moderating role between dynamic capabilities and market performance. This research contributes to boosting scientific research, particularly in terms of testing the model content, as well as the variables and the factors affecting them. In addition, this research pointed to the need for organizations to practice organizational agility and dynamic capabilities in order to improve market performance. Dynamic capabilities and organizational agility vary according to environmental dynamism for a firm’s market performance and high levels of dynamic capabilities may lead to upper market performance, as market performance is often more directly tied to SMEs organizational agility. Moreover, managers should account for dynamic capabilities while assessing the effects of it on organizational agility and firm performance.

Suggested Citation

  • Bulent Akkaya & Qaisar Iqbal, 2021. "Linking Dynamic Capabilities and Market Performance of SMEs: The Moderating Role of Organizational Agility," Istanbul Business Research, Istanbul University Business School, vol. 50(2), pages 197-214, November.
    • Handle: RePEc:ist:ibsibr:v:50:y:2021:i:2:p:197-214
    DOI: 10.26650/ibr.2021.50.961237
    as

    Download full text from publisher

    File URL: https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/5F466A8179AB4D098050E46F3AD8CA10
    Download Restriction: no
    File URL: https://iupress.istanbul.edu.tr/en/journal/ibr/article/linking-dynamic-capabilities-and-market-performance-of-smes-the-moderating-role-of-organizational-agility
    Download Restriction: no
    File URL: https://libkey.io/10.26650/ibr.2021.50.961237?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kisperska-Moron, Danuta & Swierczek, Artur, 2009. "The agile capabilities of Polish companies in the supply chain: An empirical study," International Journal of Production Economics, Elsevier, vol. 118(1), pages 217-224, March.
    2. Lee, Peter K.C. & Cheng, T.C. Edwin & Yeung, Andy C.L. & Lai, Kee-hung, 2011. "An empirical study of transformational leadership, team performance and service quality in retail banks," Omega, Elsevier, vol. 39(6), pages 690-701, December.
    3. Yusuf, Y. Y. & Gunasekaran, A. & Adeleye, E. O. & Sivayoganathan, K., 2004. "Agile supply chain capabilities: Determinants of competitive objectives," European Journal of Operational Research, Elsevier, vol. 159(2), pages 379-392, December.
    4. Roberts, Nicholas & Grover, Varun, 2012. "Investigating firm's customer agility and firm performance: The importance of aligning sense and respond capabilities," Journal of Business Research, Elsevier, vol. 65(5), pages 579-585.
    5. Mie Augier & David J. Teece, 2009. "Dynamic Capabilities and the Role of Managers in Business Strategy and Economic Performance," Organization Science, INFORMS, vol. 20(2), pages 410-421, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    2. Geyi, Dan’Asabe Godwin & Yusuf, Yahaya & Menhat, Masha S. & Abubakar, Tijjani & Ogbuke, Nnamdi J., 2020. "Agile capabilities as necessary conditions for maximising sustainable supply chain performance: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 222(C).
    3. Ayoub Al-Zabidi & Ateekh Ur Rehman & Mohammed Alkahtani, 2021. "An Approach to Assess Sustainable Supply Chain Agility for a Manufacturing Organization," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    4. Hang T. T. Nguyen & Hanh Song Thi Pham & Susan Freeman, 2023. "Dynamic capabilities in tourism businesses: antecedents and outcomes," Review of Managerial Science, Springer, vol. 17(5), pages 1645-1680, July.
    5. Claudio Vitari & Elisabetta Raguseo, 2016. "Big data value and financial performance: an empirical investigation [Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data]," Post-Print halshs-01923271, HAL.
    6. Sujan Piya & Ahm Shamsuzzoha & Mohammad Khadem & Nasr Al-Hinai, 2020. "Identification of Critical Factors and Their Interrelationships to Design Agile Supply Chain: Special Focus to Oil and Gas Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 263-281, September.
    7. Ogulin, R. & Selen, W. & Ashayeri, J., 2010. "Determinants of Informal Coordination in Networked Supply Chains," Discussion Paper 2010-133, Tilburg University, Center for Economic Research.
    8. Yi-Ju Lo & Tung Hung, 2015. "Structure offshoring and returns on offshoring," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 443-479, June.
    9. Martín-Rojas, Rodrigo & Garrido-Moreno, Aurora & García-Morales, Víctor J., 2023. "Social media use, corporate entrepreneurship and organizational resilience: A recipe for SMEs success in a post-Covid scenario," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    10. C. Lakshman & Sangeetha Lakshman & Kubilay Gok, 2023. "Managers’ knowledge and customer-focused knowledge management as dynamic capabilities: implications for innovation performance," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 246-274, February.
    11. Jolien Roelandt & Petra Andries & Mirjam Knockaert, 2022. "The contribution of board experience to opportunity development in high-tech ventures," Small Business Economics, Springer, vol. 58(3), pages 1627-1645, March.
    12. Young-Choon Kim & Taekjin Shin & Sangchan Park, 2021. "Enhancing firm performance through intra-group managerial experience: Evidence from group-affiliated firms in Korea," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 435-465, June.
    13. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    14. Monideepa Tarafdar & Sufian Qrunfleh, 2017. "Agile supply chain strategy and supply chain performance: complementary roles of supply chain practices and information systems capability for agility," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 925-938, February.
    15. Muhammad Irfan & Mingzheng Wang & Naeem Akhtar, 2019. "Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view," Operations Management Research, Springer, vol. 12(3), pages 113-128, December.
    16. Alexander Tan, 2018. "The Effect of Social Capital and Absorptive Capacity through Knowledge Management on Finance Company Performance in Indonesia," International Business Research, Canadian Center of Science and Education, vol. 11(1), pages 87-101, January.
    17. Vaagen, Hajnalka & Wallace, Stein W., 2008. "Product variety arising from hedging in the fashion supply chains," International Journal of Production Economics, Elsevier, vol. 114(2), pages 431-455, August.
    18. Carl Åberg & Mariateresa Torchia, 2020. "Do boards of directors foster strategic change? A dynamic managerial capabilities perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 655-684, September.
    19. Li, He & Fang, Debin & Zhao, Chaoyang, 2024. "Retail competition among multi-type retail electric providers in social networks," Energy Economics, Elsevier, vol. 132(C).
    20. Abel D Alonso & Seng Kok, 2018. "A resource-based view and dynamic capabilities approach in the context of a region’s international attractiveness: The recent case of Western Australia," Local Economy, London South Bank University, vol. 33(3), pages 307-328, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ist:ibsibr:v:50:y:2021:i:2:p:197-214. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ertugrul YASAR (email available below). General contact details of provider: https://edirc.repec.org/data/isisttr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.