Abstract

Scholars constantly seek insights into the effects of dynamic capabilities (DC) on performance. As a result, researchers followed various paths, including microfoundations and multilevel explanations of DC, and propose different measures of and perspectives on performance, reflecting their distinct conceptual foundations. Consequently, debates about precisely how DC affect performance continue. In line with its theoretical origins, research on DC has recently begun to blossom around the indirect effects of DC. However, the field is highly fragmented. To advance this domain theoretically, a consolidated, systematic review is needed. To provide one, this article starts with a detailed analysis of the indirect effects of DC at individual, organizational, and environmental levels. Then, as a second step, this study provides a comprehensive consolidation of the underlying arguments and theoretical approaches used to predict that certain variables function as mediators. According to these findings, the authors identify research gaps and propose an instructive research agenda.

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