Dynamic capabilities: antecedents and implications for firms' performance

Abstract

PurposeThis paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.Design/methodology/approachThe mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.FindingsIt is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.Practical implicationsThis research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.Originality/valueThis study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.

Entrepreneurial Competency as a Mediation Variable Between The Effect of Entrepreneurial Orientation and Learning Orientation on Performance

“…This shows that the better business actors apply the principles contained in entrepreneurial orientation such as how entrepreneurs can innovate and develop their business markets, be proactive in seeking business relationships and be aware of competition, and willing to take risks in their business development efforts, employees will feel competent in good entrepreneurship. The results of this study are consistent with the results of research conducted by [8], [13], and [4] which prove a significant causal relationship between Entrepreneurial Orientation and Entrepreneurial Competency.…”

“…There are studies that have studied the relationship between learning orientation and performance. Research conducted by [8] and [13] results that learning orientation can strengthen employees to be able to gain new things and apply the knowledge learned to improve company performance, research conducted by [4] results that learning orientation can maximize business performance in companies.…”

Strategic orientations and firm performance: the role of information technology adoption capability

“…Strategic directions provided by firms' SOs would be congruent with their DC (Teece, 2016). Firms may develop or acquire a capability or set of capabilities to alter their resources in building competitive advantages (Correia et al , 2021, 2021). This research utilizes IT adoption capability as potentially the capability necessary to transform other firm resources.…”

Government financial support and financial performance of SMEs: A dual sequential mediator approach

“…Finally, this study found that CERPI and CA sequentially mediate the GFS and financial performance relationship. Although this sequential mediation of CERPI and CA is novel, however, some related studies have confirmed the separate mediation of IT implementation ( Gillani et al., 2020 ) and CA ( Correia et al., 2021 ). This finding suggests that external resources (GFS) need to be used to acquire internal resources such as cloud ERP that possess the VRIN qualities, as explicated in the RBV theory of Barney (1991) , which when used and strategically aligned with the organisational objectives, gives CA and subsequently better FPER.…”