Operating and Dynamic Capabilities and Their Impact on Operating and Business Performance

Abstract

This work verified, through confirmatory factor analysis, a new measurement model for measuring dynamic capabilities based on current propositions in the literature, using a database of 1008 manufacturing sites from 16 countries. The indirect and direct effects of dynamic capabilities on ordinary capabilities and operating and business performance were also checked. In particular, we tested whether there were any mediating or moderating effects between ordinary and dynamic capabilities on operating and business performance. All the tests were performed through SEM in AMOS and OLS in SPSS. Additionally, a Heckman two-step procedure was performed. The proposed measurement model shows a good fit, meaning that it can be used for further exploring the interplay of ordinary and dynamic capabilities. The mediating and moderating effects of dynamic capabilities measured showed only partial mediation and only low and nonsignificant levels of moderation, meaning that further analysis of their interrelationships on performance should be investigated. Measurement models for dynamic capabilities are especially scarce. Virtually no work deals with dynamic capabilities in the field of operations management; yet it is exactly by means of operations that one can verify the dynamic capabilities being used and what benefits they bring.