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Dynamic capabilities and performance: strategy, structure and environment

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posted on 2025-05-08, 16:04 authored by Ralf Wilden, Siegfried P. Gudergan, Bo Bernhard Nielsen, Ian Lings
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.

History

Journal title

Long Range Planning

Volume

46

Issue

1-2

Pagination

72-96

Publisher

Elsevier

Language

  • en, English

College/Research Centre

Faculty of Business and Law

School

Newcastle Business School

Rights statement

NOTICE: this is the author’s version of a work that was accepted for publication in 'Long Range Planning'. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in 'Long Range Planning', Vol. 46, Issue 1-2, p. 72-96 (2013) http://dx.doi.org/10.1016/j.lrp.2012.12.001.

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