Abstract
Dynamic capabilities influence firm performance by renewing operational capabilities but it is unclearfrom prior studies whether they actually influence firm performance through operational capabilities.Process-quality, process-efficiency and operational flexibility capabilities are three operationalcapabilities. It is also unclear whether a given dynamic capability influences firm performance byrenewing a single operational capability or several of them. Using a firm’s capability to learn fromcustomers as a proxy for a dynamic capability, we find that it renews all three operational capabilities,but a firm’s learning capability influences firm performance only through the process-qualitycapability. We theorize that renewal of former two capabilities serve to maintain existing operations,while renewal of latter capability helps a firm gain an advantage. We term the capability that can usedto simultaneously maintain existing operations and influence performance a dual-purpose capability.Future research should expand to understand how dual-purpose capabilities influence performance.
 Keywords: Capability-based view; Dynamic capabilities; Operational capabilities; Firm performance;Firm efficiency
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