The Mediating Role of Dynamic Capabilities and Business Model Innovation on the Relationship Between Environment Turbulence and Firm Performance

Abstract

This paper describes the impact of environmental turbulence on the company's business model that has led to a global recession. What is surprising is that the cause of the 2020 recession is Covid-19, which is a health crisis, but has an impact on the world economic crisis. Background Problems: The world economic crisis requires all companies to change their strategies and business models significantly in order to maintain the company's survival. This paper tries to examine how companies survive and try to get out of a crisis with no certainty over. Novelty: Changes in the business model of this crisis era require a strong dynamic capability of the company to be able to modify the existing factors in the business model canvas. Changes include activities in creating new strategies based on Sense, Seize and Transform on dynamic capabilities. Research Methods: This paper is the initial part of the author's dissertation plan that takes the theme of the relationship between environment turbulence, business model innovation, dynamic capabilities and sustainable firm performance. Compiled as a literature review that links the logical relationship between these various factors. Data were taken from various literatures and formulated qualitatively descriptively to determine the phenomena that occurred in companies in the era of the Covid-19 crisis. The industries sampled in this paper are companies in the field of courier and logistics. Finding / Results: This paper presents a research model to examine the importance of companies changing their business model which is based on the company's dynamic capabilities and business model innovation to maintain continuity of company life. Conclusion: This paper has been able to formulate efforts to maintain and adjust the competitiveness of companies in the crisis era, especially the crisis caused by Covid-19.