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Journal of Management Studies· 2016Q1· Meta-analysis

Dynamic Capabilities and Organizational Performance: A Meta‐Analytic Evaluation and Extension

Stav Fainshmidt, Amir Pezeshkan, M. Lance Frazier, Anil Nair et al.

Short summary

A meta-analysis of prior studies confirms that dynamic capabilities positively relate to performance (r = 0.296), but finds no evidence that this link is stronger in technologically dynamic industries. It also shows higher-order capabilities are more impactful than lower-order ones.

AI-generated from the title and abstract; the full text is not read.

Key points

  • Dynamic capabilities are positively linked to organizational performance (r = 0.296).
  • The relationship between dynamic capabilities and performance is NOT stronger in industries with high technological dynamism.
  • Higher-order dynamic capabilities have a stronger positive impact on performance than lower-order ones.
  • Lower-order dynamic capabilities partially mediate the performance impact of higher-order capabilities.

AI-generated from the title and abstract; the full text is not read.

Abstract

Abstract We move the dynamic capabilities view (DCV) forward in two important ways by meta‐analysing prior empirical studies. First, we evaluate the two core theoretical tenets of the DCV: (1) Dynamic capabilities are positively related to performance, and (2) this relationship is stronger in industries with higher levels of technological dynamism. We find support for the former (r c = 0.296) but not for the latter, though results suggest the existence of moderators. Second, we theorize and demonstrate empirically that higher‐order dynamic capabilities are more strongly related to performance than lower‐order dynamic capabilities, lower‐order dynamic capabilities partially mediate the relationship between higher‐order dynamic capabilities and performance, and dynamic capabilities contribute more to performance in developing economies than in developed economies. These findings illustrate how the nature of the dynamic capability and the economic context in which it is utilized shape its value, thus offering a more nuanced conceptualization of the dynamic capabilities‐performance relationship.

The authors' abstract, as published at the source. Journal of Management Studies, 2016 · DOI ↗

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Field: Business and International Management

Business and International ManagementBusiness, Management and Accounting