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The impact of dynamic capabilities and dynamic performance measurement on competitive performance: evidence from Thai hotel entrepreneurs

Author

Listed:
  • Kanittha Pattanasing

    (Maejo University, Thailand)

  • Somnuk Aujirapongpan

    (Walailak University, Thailand)

  • Supit Ritkaew

    (Walailak University, Thailand)

  • Anuman Chanthawong

    (Suratthani Rajabhat University, Thailand)

  • Sirichai Deelers

    (Silpakorn University, Thailand)

Abstract

This research aims to provide empirical evidence on the causal relationships among the effects of dynamic capabilities and the dynamic performance measurement on high performance organizations (HPOs) and the competitive performance of hotel businesses in a world-class tourism destination of Thailand. The research using questionnaires to collect data from 115 hotel businesses located at a world class tourism destination in Thailand. The data were first analysed using descriptive statistics and then confirmatory factor analysis and structural equation modelling were conducted. The study results reveal that the causal relationship model fit the empirical data ( 2 = 74.39, p-value = 0.15, 2/df = 1.18, CFI = 0.99, GFI = 0.92, NFI = 0.96, RMSEA = 0.04, and SRMR = 0.03). In addition, the results also indicate that the dynamic capabilities have a direct positive effect on dynamic performance measurement. The study reflects that being a HPO not only has a direct positive effect on competitive performance but is also a complete mediator in transferring the effects of the dynamic capabilities and dynamic performance measurement to competitive performance. Under an increasingly dynamic environment, traditional performance measurement innovations that only consider measurement and management tend to lead to imperfections and lower benefits. Additionally, traditional performance measurements are static characteristics; therefore, it is essential to catch up with the dynamic environment. This research will provide empirical evidence of the causal relationship of how dynamic capabilities and dynamic performance measurement affect a HPO and competitive performance towards excellence under a dynamic environment.

Suggested Citation

  • Kanittha Pattanasing & Somnuk Aujirapongpan & Supit Ritkaew & Anuman Chanthawong & Sirichai Deelers, 2021. "The impact of dynamic capabilities and dynamic performance measurement on competitive performance: evidence from Thai hotel entrepreneurs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 10-28, March.
    • Handle: RePEc:ssi:jouesi:v:8:y:2021:i:3:p:10-28
    DOI: 10.9770/jesi.2021.8.3(1)
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    References listed on IDEAS

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    More about this item

    Keywords

    dynamic capabilities; dynamic performance measurement; high performance organization;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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