The Impact of Dynamic Capabilities on Performance of Small and Medium Tourism Businesses: A Study for the South-Central Coast Region, Vietnam

Abstract

The competitiveness of businesses depends on the resources and capabilities that businesses are possessing, developing, and exploiting, including dynamic capabilities. In turn, competitiveness positively affects the business performance. However, whether there is an impact of dynamic capabilities on business performance is still unclear. Moreover, research on the mediating role of entrepreneurial orientation and innovation in the relationship of dynamic capabilities and business performance is rare. The research objective of this study is to check the impact of dynamic capabilities on business performance and the mediating role of entrepreneurial orientation as well as innovation in the relationship of dynamic capabilities and business performance. The PLS-SEM method is used. The research sample with 405 observations was collected using non-probability method. The respondents were managers of tourism small and medium businesses. Research results show that dynamic capabilities directly and indirectly impact the performance of small and medium-sized tourism businesses in the South Central Coast region of Vietnam through entrepreneurial orientation and innovation.