PurposeThe aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused on how leadership style impacts on organisational performance, the authors have investigated how the dynamic managerial capabilities of middle managers and their organisational capacity for change as well as their attitude towards the change are linked to organisational performance.Design/methodology/approachThe dataset was gathered during the field research carried out in a large public Indonesian government institution. In total, 313 managers and their direct followers participated in this study. The authors have employed structural equation modelling to test the hypotheses.FindingsThe results of this study demonstrate the role of the dynamic capabilities of the middle managers associated with organisational performance. The results show that dynamic managerial capabilities and organisational performance are mediated by the organisational capacity for change.Practical implicationsMiddle managers should equip and develop their capabilities in order to embrace change in the organisation through the communication between the different staff levels, uniting the vision and mission with the organisational members. Further, the organisation should empower the role of the middle managers by increasing their authority and participation in the policy-making that is part of the change process. In addition, the workplace could implement interventions to optimise the dynamic managerial capabilities held by the middle manager and employees through assessments and mentoring. Finally, particular training programmes could be implemented to boost the employees' skills and flexibility, thereby keeping them agile in the context of the changes in the work environment.Originality/valueThe role of the dynamic managerial capabilities of the middle manager is a prominent factor when facilitating a high level of organisational performance in a public organisation. However, the role of dynamic managerial capabilities does not have a direct effect on organisational performance if the organisation does not have the capacity to change, particularly in the Indonesian context.

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The last three decades have seen the public sector move from the traditional bureaucratic model to a modern one with better services, efficiency, and accountability. To succeed in making a change, public organizations must develop their capacity for change to improve performance. Middle managers have a central role in the change process, particularly their cognitive styles (knowing, planning, and creating). This study aims to analyze how middle managers’ cognitive style contributes to the organizational performance through organizational capacity for change (OCC). The study was conducted with 75 managers along with 238 subordinates from a public organization in Indonesia. The results revealed that the creating style and organizational performance are mediated by OCC. Only creating styles positively relate to OCC, while knowing and planning styles are not. This study extends prior studies on the link between cognitive style and organizational performance by introducing OCC as the mediator.