The Role of Dynamic Capability in Mediating The Effects of Environmental Dynamism and Managerial Capabilities on Firm Performance: a Preliminary Study

Permana, Adrian; Ellitan, Lena

doi:10.24123/jeb.v1i2.2870

Cited by 4 publications

(7 citation statements)

References 28 publications

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“…At the same time, this conclusion effectively answers the Only the organizational learning that is consistent with the human resource service enterprises strategy and can be transformed by the dynamic capability of the enterprise, it can improve organizational performance. Thirdly, environmental dynamics and its dimensions have a significantly positive moderation effect between dynamic capability and organizational performance of human resource service enterprises, which is basically consistent with the conclusions of the existing literature (Protogerou et al, 2012;Permana and Ellitan, 2020;Yoshikuni, 2021). However, the more valuable finding of this study is that two dimensions of environmental dynamics (technology environment and market environment) have a positive moderation effect between dynamic capability and organizational performance of human resource service enterprises.…”

Section: Discussionsupporting

confidence: 89%

Influence of Organizational Learning and Dynamic Capability on Organizational Performance of Human Resource Service Enterprises: Moderation Effect of Technology Environment and Market Environment

Chen

Zheng

2022

Front. Psychol.

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This study aims to explore the influence of organizational learning and dynamic capability on organizational performance of human resource service enterprises with the moderating role of technology environment and market environment. Data were gathered from 360 human resource service enterprises, and applied the hierarchical linear regression method and structural equation model to test the hypotheses. We found that organizational learning has a significantly positive impact on resource integration capability, as well as has a significantly positive impact on resource reconfiguration capability of human resource service enterprises. Resource integration capability and resource reconfiguration capability have a significantly positive impact on organizational performance. Moreover, results indicated that the resource integration capability and resource reconfiguration capability partially mediate in the relationship between organizational learning and organizational performance. Furthermore, technology environment and market environment have positive moderation effect between resource integration capability and organizational performance of human resource service enterprises, as well as have positive moderation effect between resource reconfiguration capability and organizational performance of human resource service enterprises. The current study contributes to a better understand the impact mechanism of organizational learning on organizational performance from the perspective of organizational learning theory and dynamic capability theory. In addition, this study provides implications for human resource service enterprises and managers to improve organizational performance.

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Section: Discussionsupporting

confidence: 89%

Influence of Organizational Learning and Dynamic Capability on Organizational Performance of Human Resource Service Enterprises: Moderation Effect of Technology Environment and Market Environment

Chen

Zheng

2022

Front. Psychol.

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“…Based on this theory, SMEs may require customers sensing and responding capabilities (Roberts and Grover, 2012). Thus, SMEs may have the ability to immediately detect and return, which are essential to adapt to the current business environment (Permana et al , 2020; Battaglia and Neirotti, 2020).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Survival strategies of SMEs amidst the COVID-19 pandemic: application of SEM and fsQCA

Rahman

Fattah

Bag³

et al. 2022

JBIM

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Purpose As a global pandemic, the COVID-19 crisis has profoundly affected the development of local firms, threatening the survival of small and medium enterprises (SMEs). This study aims to present an integrated framework by investigating the impact of strategic tools (i.e. firms’ capability of business agility, marketing operational efficiency, optimisation of innovation capability [OIC], managing employees’ satisfaction and rethinking customers’ experience) on the survival strategies of SMEs amidst the COVID-19 pandemic. Design/methodology/approach The current study used data from managers of SMEs and conducted an asymmetrical analysis (i.e. structural equation modelling [SEM]) to investigate the factors influencing the survival strategies of SMEs amidst the COVID-19 pandemic. This study also applied an asymmetrical approach (i.e. fuzzy sets qualitative comparative analysis-fsQCA) to explore the causal recipes and analysis of the necessary conditions to identify the factors required to achieve the expected outcome. Findings Results from SEM support all hypotheses. Results from fsQCA with the same data set show that firms’ business agility and OIC are necessary conditions for SMEs’ survival strategies. The result from fsQCA also reveals multiple sufficient conditions to succeed SMEs’ survival strategies amidst the COVID-19 pandemic. Practical implications Findings prescribe how SMEs adapt to this vulnerable business condition by applying the strategic tools and recipes suggested for survival. Originality/value This research applied an innovative analysis to reveal necessary and sufficient conditions that conventional methods such as SEM have limited power. This pioneering research in the context of the COVID-19 pandemic is considered novel in terms of the prescriptive strategic recipes offered to SMEs to adapt to and survive in the crisis caused by COVID-19.

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“…The study shows that environmental changes, including government regulations and changes in consumer demand, affect the performance of MSMEs. A study by Machmud & Sidharta (2016) showed a positive influence of environmental dynamism, while other research such as Permana & Ellitan (2020) found an insignificant influence.…”

Section: Introductionmentioning

confidence: 90%

“…Besides regulations, the impact of changes in consumer nature such as changes in demand, innovation, and technology can affect the performance of MSMEs (Wijbenga & van Witteloostuijn, 2007). Mukherji & Mukherji (2016) stated that environmental dynamism forces MSMEs to be able to survive, find solutions, and be able to prepare for the impact of further environmental changes Permana & Ellitan (2020) and Haleem & Jehangir (2018) argued that environmental dynamism positively affects the performance of MSMEs. This is different from the research by Sandra & Purwanto (2017) that environmental dynamism does not have a significant effect on the performance of MSMEs.…”

Section: Introductionmentioning

confidence: 99%

“…Many studies have proven that dynamic capabilities help MSMEs to maintain and recreate competitive advantages to become sustainable competitive advantages based on a dynamic environment. According to Permana & Ellitan (2020), dynamic capabilities have dimensions such as the ability to sense and the ability to absorb information. Teece (2007) argued that this sensing ability is characterized by a company's ability to discover, interpret, and pursue business opportunities that can impact the speed and accuracy of innovation.…”

Section: Introductionmentioning

confidence: 99%

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The Influence of Environmental Dynamism, Dynamics Capability, and Financial Literacy on the Performance of Micro, Small, and Medium Enterprises (Msmes) in Makassar City

Aswar,

Aslam,

Wulansary

et al. 2023

JHSSB

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Micro, Small, and Medium Enterprises (MSMEs) are crucial for the Indonesian economy, especially in Makassar. They contribute significantly to economic activities and public income. According to data from the Makassar City Cooperatives and MSMEs Office in 2021, there are 4,816 registered MSMEs in various sectors such as trade, industry, non-industrial, and others. The trade sector, including fashion and culinary, is particularly dominant in Makassar. However, the performance of MSMEs has experienced a decline. This study focuses on exploring the factors that affect their performance, specifically environmental dynamism, which encompasses environmental changes, government regulations, shifts in consumer demand, innovation, and technology. The adaptability of MSMEs to these environmental changes is a crucial aspect of their performance. Additionally, financial literacy also plays a significant role in improving their performance. The study aims to investigate the influence of environmental dynamism, adaptability, and financial literacy on the performance of MSMEs in Makassar. The research method employed is quantitative, involving interviews, questionnaires, and observations of 100 MSMEs in the trade sector. The research findings indicate that environmental dynamism and financial literacy have a significant impact on the performance of MSMEs, whereas adaptability does not show the same level of significance. Furthermore, the study highlights the importance of financial literacy in the financial management and decision-making processes of MSMEs. This research provides valuable insights into the factors that influence the performance of MSMEs and offers relevant recommendations to enhance the sustainability of the MSME sector in Makassar.

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The Role of Dynamic Capability in Mediating The Effects of Environmental Dynamism and Managerial Capabilities on Firm Performance: a Preliminary Study

Cited by 4 publications

References 28 publications

Influence of Organizational Learning and Dynamic Capability on Organizational Performance of Human Resource Service Enterprises: Moderation Effect of Technology Environment and Market Environment

Influence of Organizational Learning and Dynamic Capability on Organizational Performance of Human Resource Service Enterprises: Moderation Effect of Technology Environment and Market Environment

Survival strategies of SMEs amidst the COVID-19 pandemic: application of SEM and fsQCA

The Influence of Environmental Dynamism, Dynamics Capability, and Financial Literacy on the Performance of Micro, Small, and Medium Enterprises (Msmes) in Makassar City

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