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Dynamic capabilities and sustainability performance: Exploring the moderating role of environmental dynamism in the Norwegian fishing industry

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  • Magoti Daniel Harun
  • Heidi Hogset
  • Deodat Mwesiumo

Abstract

This study examines the effect of dynamic capabilities (DCs) on economic performance (ECOP), social performance (SOP), and environmental performance (ENVP) under different levels of environmental dynamism (EnvD). Based on preliminary interviews and survey data collected from Norwegian fishing firms, the analysis was conducted using partial least squares structural equation modeling and necessary conditions analysis. The results show that firms that acquire a set of DCs are more likely to improve their economic, social, and environmental sustainability performance. More so, firms' economic performance is a necessary condition for social performance, but not for ENVP. Interestingly, the results show that the effect of DCs on economic and environmental sustainability performance is even stronger when the level of EnvD is higher. However, EnvD does not have a significant effect on the relationship between DCs and social sustainability performance. Our findings provide guidance to managers on how and when to invest in and leverage DCs to improve sustainability performance in the food industry.

Suggested Citation

  • Magoti Daniel Harun & Heidi Hogset & Deodat Mwesiumo, 2023. "Dynamic capabilities and sustainability performance: Exploring the moderating role of environmental dynamism in the Norwegian fishing industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2636-2655, August.
    • Handle: RePEc:wly:sustdv:v:31:y:2023:i:4:p:2636-2655
    DOI: 10.1002/sd.2536
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