Productive dynamic capability, environmental uncertainty, and organizational performance: an analysis of micro and small-sized agroindustries in Southern Brazil

Abstract

Purpose: The purpose of this research was to correlate the constructs of productive dynamic capability and organizational performance mediated by environmental uncertainty in micro and small agroindustries of Brazilian states such as the Rio Grande do Sul, Santa Catarina, and Paraná.Methodology: In order to reach the expected aim, quantitative research using the survey technique was developed. The sample that was used consisting of 138 small and micro-sized of southern Brazilian agroindustries. It was performed confirmatory factor analysis and structural equation modeling for the data analysis. In order to analyze the mediation, the two dimensions of environmental uncertainty, complexity, and dynamism were analyzed each one isolated.Findings: The outcomes show a positive correlation between productive dynamic capability and performance in rural agroindustries. The mediation of both complexity and dynamism presented a positive statistical significance, that is the environmental uncertainty mediated the relationship. This study suggests that the agroindustries productive dynamic capability contributes to its performance, and the perception of environmental uncertainty influences this relation.Originality/Value: The study contributes to the dynamic capabilities’ theory, advancing and providing new empirical evidence to the investigations on dynamic capabilities, specifically on productive dynamic capability, when relating the performance construct in micro and small agroindustries. It also contributes to the environmental uncertainty field through its mediating effect on the relation between productive dynamic capability and organizational performance.