Dynamic Capabilities and Performance: Strategy, Structure and Environment

Journal Publication ResearchOnline@JCU
Wilden, Ralf;Gudergan, Siegfried P.;Nielsen, Bo Bernhard;Lings, Ian
Abstract

Dynamic capabilities are widely considered to incorporate those processes that enable organizations to sustain superior performance over time. In this paper, we argue theoretically and demonstrate empirically that these effects are contingent on organizational structure and the competitive intensity in the market. Results from partial least square structural equation modeling (PLS-SEM) analyses indicate that organic organizational structures facilitate the impact of dynamic capabilities on organizational performance. Furthermore, we find that the performance effects of dynamic capabilities are contingent on the competitive intensity faced by firms. Our findings demonstrate the performance effects of internal alignment between organizational structure and dynamic capabilities, as well as the external fit of dynamic capabilities with competitive intensity. We outline the advantages of PLS-SEM for modeling latent constructs, such as dynamic capabilities, and conclude with managerial implications.

Journal

Long Range Planning

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N/A

Volume

46

ISBN/ISSN

1873-1872

Edition

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Issue

1-2

Pages Count

25

Location

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Publisher

Elsevier

Publisher Url

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Publisher Location

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Publish Date

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Url

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Date

N/A

EISSN

N/A

DOI

10.1016/j.lrp.2012.12.001