Moderating Effect Of Environmental Dynamism Research Articles

How transformational leadership promotes employee creativity within the context of environmental dynamism: a multilevel perspective

PurposeThis study aims to explore how transformational leadership influences employees' creativity by considering the role of the environment and psychology. The study aims to provide insights into the impact of transformational leadership on team innovation climate, team reflexivity, psychological capital and employee creativity while also examining the moderating effect of environmental dynamism on these relationships.Design/methodology/approachThis study employed a multi-source, multi-wave approach, utilizing data from 618 participants in 118 teams. It constructed a multilevel structural equation model and estimated the confidence intervals of the mediated and moderated effects using the Markov chain Monte Carlo method.FindingsThe results of the multilevel analyses indicated that transformational leadership positively influenced the team innovation climate, team reflexivity, psychological capital and employee creativity. Moreover, the study found that environmental dynamism positively moderates the relationships among transformational leadership, team reflexivity, psychological capital and employee creativity.Originality/valueDrawing on social cognitive theory and the motivated information processing in groups model, this study offers new insights into the interplay between transformational leadership and creativity. It examines the moderating role of cross-level process linkages and environmental dynamism, thereby validating and extending relevant theories.

Moderating Role of Environment on the Relationship of Competitive Strategy and Firm Performance: Based on Machine Learning and Text Analysis

The impact of competitive strategy on firm performance has been a fundamental and important issue. However, there is a little research on moderating role of environment on the relationship, especially moderating role of different dimensions of environment. This study employs the technology of machine learning and text analysis to obtain the measure value of competitive strategy and environment. On this basis, the research empirically investigates the moderating effect of environmental dynamism, complexity and competitiveness on the relationship between competitive strategy and organizational performance. The results show that both types of competitive strategy can improve corporate performance, environmental characteristics have a significant impact on the causal relationship mentioned above, and there are differences in the moderating effects of different environmental dimensions. Some conclusions are inconsistent with the research of foreign scholars. The differences in conclusions reflect the impact of China's transitional economic environment on corporate competitive strategy decisions and result.

Applications of generative AI and future organizational performance: The mediating role of explorative and exploitative innovation and the moderating role of ethical dilemmas and environmental dynamism

Generative Artificial Intelligence (GenAI) is one of the popular AI technologies which can produce multiple kinds of contents including music, text, image, as well as synthetic data. As GenAI technology can produce various forms of contents, organizations must face ethical dilemmas as to where this technology is likely to be used. Organizations do not want to compromise their ethical standards and compliance policies. Against this backdrop, the aim of this study is to examine if GenAI technology could improve the future performance of the organizations. This study deployed ethical dilemmas and environmental dynamism as two moderators acting on different linkages between adoption of GenAI and organizational future performance. With the help of literature review and theories, a theoretical model has been developed conceptually which was validated using PLS-SEM technique with the feedback of 326 responses from different types of organizations. This study found that the adoption of GenAI could improve exploratory and exploitative innovation under the moderating effects of environmental dynamism and ethical dilemmas. Moreover, it highlighted that the application of GenAI could improve organizational performance.

Exploring the effect of dynamic capabilities on operational excellence, moderated by environmental dynamism in the apparel industry

PurposeThe effect of dynamic capabilities on operational excellence and the moderating effect of environmental dynamism on the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka were investigated while developing new psychometric scales to assess operational excellence and dynamic capacities constructs.Design/methodology/approachWe followed the exploratory sequential research design with a mixed-method research approach, aligning with the pragmatic research philosophy. Thus, both qualitative and quantitative research methods were followed.FindingsDynamic capabilities positively affect operational excellence, and environmental dynamism moderates the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka such that when a higher environmental dynamism exists, a weaker positive relationship exists between dynamic capabilities and operational excellence. The two main dimensions of the operational excellence construct are continuous improvement of sustainable operational performance and sustainable competitive advantages. It empirically confirmed that sensing, seizing and reconfiguring capabilities are the three main dimensions of the dynamic capabilities construct.Research limitations/implicationsThis study was limited to the apparel industry in Sri Lanka. This research phenomenon should be explored in other industrial sectors worldwide to generalize the findings. The practitioners in the apparel sector may improve the organizational dynamic capabilities to achieve operational excellence and keep a strong positive relationship between dynamic capabilities and operational excellence in a highly dynamic environment if they address out-of-family situations with out-of-the-box thinking.Originality/valueWe generated two new empirical findings: (1) dynamic capabilities positively affect operational excellence, and (2) environmental dynamism moderates the relationship between dynamic capabilities and operational excellence. Also, we introduced validated new scales for assessing operational excellence and dynamic capabilities.

Strengthening resilience in supply chains: the role of multi-layer flexibility, supply chain risks and environmental dynamism

PurposeThis study examines the relationship between multi-layer supply chain flexibility (MSCF) and Supply chain resilience (SCR). Further, it looks at the moderating effect of environmental dynamism (ED) and supply chain risks (SCRI) on the relationship between MSCF and SCR.Design/methodology/approachExecutives from the pharmaceutical, agri-food, electronics, automobile and textile industries were invited to complete a self-administered questionnaire. We received feedback from a total of 302 participants. Prior to conducting the primary analysis, we addressed the potential for nonresponse bias and verified the assumptions of homoscedasticity and normal distribution of the data. The reliability and validity of the constructs were established through confirmatory factor analysis. Structural equation modelling is employed for the purpose of conducting hypothesis testing.FindingsThe results demonstrate a notable influence of MSCF on SCR, particularly in settings characterized by high levels of ED and SCRI. The study highlights the importance of flexibility in multiple aspects of the supply chain to build resilience against a range of disruptions and uncertainties.Originality/valueThe study presents the fundamental role of Multi-Layer Flexibility in building up SCR. The results of this study reinforce the existing literature and offers empirical evidence for how ED, SCRI moderates the influence between MSCF to SCR. These results offer valuable information to both supply chain specialists and researchers for building comprehensive strategy to bring resilience in supply chains.

Performance feedback duration and strategic change in USA manufacturing firms

PurposeThis paper seeks to explore the effect of performance duration (rather than intensity) on the subsequent initiation of strategic change by firms. Specifically, the effect of outperformance and underperformance duration on strategic change, as well as the moderating effect of environmental dynamism, is studied.Design/methodology/approachUsing a fixed-effects model, analyzing a sample of 34,907 firm-year observations from 1980 to 2018 across 112 industries mostly supported proposed hypotheses.FindingsResults revealed a U-shaped relationship between outperformance duration and strategic change and an inverted U-shaped relationship between underperformance duration and strategic change. The moderation role of environmental dynamism was only partially supported.Originality/valueThis study examines a new dimension of performance feedback, namely duration, rather than the widely used intensity of performance feedback, to enhance our understanding of the behavioral theory of the firm.

Dynamic Capabilities and Firm Performance: Moderating Effect of Environmental Dynamism

This paper, therefore, conducts much detail with regard to the moderating role of environmental dynamism between dynamic capabilities and firm performance, with special reference to Small and Medium Enterprises (SMEs) of Pakistan. The conceptual framework leans on the proposition by Teece, Pisano, and Shuen (1997) that dynamic capabilities allow reconfiguration of resources for the changing market demand and hence the source of competitive advantage to the firm. It is theoretically possible that empirical studies on the moderating effect of environmental dynamism are possible, and still scarce within this domain—an even more rare context in the case of Pakistani SMEs. Thereby, this research intends to fill that gap by empirically examining how the influence of environmental dynamism plays out at the dynamic capabilities-performance nexus in Pakistani SMEs—a sector pivotal for the economic growth of the nation but also challenged by a unique blend of local business conditions. Understanding how firms can benefit from their dynamic capabilities in relation to their performance in volatile markets has become important within this fast-changing business environment. This paper, therefore, through an intensive review of the literature, traces the development of the dynamic capability theory in highlighting its relevance for firm performance and the critical roles environmental dynamism has played as one of the most emphasized contextual factors in firm performance. Quantitative research design will be used for data collection from a broad base of industries under the SME sector of Pakistan, and it will be collected through cross-sectional surveys to explore the proposed relationships. Findings have revealed an environmental dynamism-relevant moderating effect on the relationship between dynamic capabilities and performance. That is to say, in the most volatile environments, SME performance will be more dependent on dynamic capabilities, and that dependence will imply that the strategic value of the capabilities would become contingent on the level of environmental dynamism. This is congruent with the resource-based view (RBV) theory of strategy: the strategic value of resources and capabilities depends on the fit that such resources will have with the external environment. Implications for managers and policymakers, therefore, could be said to be very pragmatic, since SMEs operating within such dynamic markets would have a crying need to develop and deploy dynamic capabilities in a strategic way to effectively steer through the environment. First, these findings contribute to theoretical development in that they draw and support from the dynamic capability view (DCV) and RBV literature in verifying the contingent value of the dynamic capability with respect to environmental dynamism. It not only adds some fertile insights into the dynamic capabilities framework within an emerging market context like Pakistan but also substantiates some interesting facets for SMEs to gain an edge on their competitive advantage within the fast-changing global business environment.

Exploring the impacts of knowledge recombination on firms’ breakthrough innovation: the moderating effect of environmental dynamism

PurposeTo adapt to the rapidly changing market environment, firms must constantly adjust and change their knowledge base to develop new technologies. The purpose of this paper is to analyze the improvement path of firms’ breakthrough innovation from the perspective of knowledge recombination in the context of dynamic change in the knowledge base. By analyzing the influencing mechanism of environmental dynamism on the relationship between the two, this paper provides a theoretical foundation for managers to make knowledge recombination decisions under a dynamic external environment while further enriching the firm’s innovation achievements.Design/methodology/approachUsing data from 220 manufacturing firms listed on the Shanghai and Shenzhen A-share stock from 2010 to 2018, an extensive panel data set was constructed to investigate the effect of knowledge recombination, which was divided into recombination creation and recombination reuse, on firms’ breakthrough innovation. In addition, the authors differentiated environmental dynamism as market dynamism and technological dynamism and then examined its moderating role in the above relationships.FindingsThe research results show that various recombination behaviors of knowledge elements have a differentiated effect on firms’ breakthrough innovation presented as follows: Knowledge recombination creation is significantly positively correlated with firms’ breakthrough innovation, while knowledge recombination reuse is significantly negatively correlated with firms’ breakthrough innovation. In addition, environmental dynamism has a considerable moderating effect between knowledge recombination and firms’ breakthrough innovation further, emphasizing that the moderating effect on different types of knowledge recombination behaviors is significantly distinct.Research limitations/implicationsFirst, given that this study refers to several Chinese noted databases to collect second-hand data for empirical analysis, future research could use first-hand data by collecting questionnaire survey and interview to provide a more practical and detailed research conclusion. Second, the authors focused on the contextual variable to explore the moderating role of environmental dynamism on the relationship between knowledge recombination and breakthrough innovation. Nevertheless, the indirect effects of other internal factors were not discussed. The authors advocate future studies to involve other moderators from employee social and phycological perspectives, such as trust in colleagues in the proposed theoretical models in this study.Practical implicationsThis study is conducive for managers to attach great attention to knowledge management practices in the firm and to understand the critical role of knowledge recombination in affecting innovation performance under dynamic environmental changes. Moreover, this study provides practical guidance and serves as a reference for firms to strengthen their knowledge recombination ability as full utilization of existing knowledge elements and exploration of new knowledge values.Originality/valuePrimarily, from the perspective of dynamic changes in the knowledge base, this paper explores how the knowledge recombination behaviors affect firms’ breakthrough innovation, thereby enriching and extending the relationship theory between knowledge recombination capabilities and breakthrough innovation, while new and valuable ideas are provided in the study of issues related to the firms’ breakthrough innovation; Moreover, this study analyzes the moderating effects of diverse types of environmental dynamism on the relationship between knowledge recombination and firms’ breakthrough innovation from a multi-dimensional perspective proposing that the moderating effects of environmental dynamism on different knowledge recombination behaviors are distinct.

Artificial intelligence capabilities, open innovation, and business performance – Empirical insights from multinational B2B companies

In contrast to the operational nature of business-to-consumer (B2C) enterprises, business-to-business (B2B) organizations emphasizes offering specialized products and services to their clients, which are businesses. Recognizing that B2B organizations are dealing with complex metadata in an ever-changing business context, artificial intelligence (AI) technologies possess the potential in assisting them analyse massive amounts of data, generating actionable insights, and formulating revolutionary ideas, potentially improving collaboration and innovation. As a result, this study adopts an empirical research approach to analyse the relationship among AI capabilities, open innovation, and business performance, with an emphasis on B2B companies, based on the theoretical foundations of social-technical system and contingency theories. This study investigated the relationship between AI capabilities and open innovation practices, as well as the effect they have on business performance, using survey data collected from 398 B2B multinational companies and structural equation modelling. The findings indicate that AI capabilities have a favourable effect on open innovation practices, which subsequently leads to an improvement in business performance. Notably, the impact of AI capabilities on business performance was found to be partially mediated. The examination of the moderating effect of environmental dynamism reveals that it exerts a significant influence on the relationship between AI capabilities and outbound open innovation. However, it does not have a significant moderating impact on the causal interaction of AI capabilities on both business performance and inbound open innovation. The ramifications of these findings are significant for managers and policymakers who are interested in fostering innovation and enhancing competitiveness within the B2B sector. The results underscore the crucial role of cultivating AI capabilities.

Transactive memory system, boundary-spanning search and business model innovation: the moderating role of environmental dynamism

Based on organizational learning theory, the influence of the transactive memory system of the top management team on business model innovation is discussed, as is the impact of different dimensions of boundary-spanning search on different business model innovation attributes when attention distribution is taken into account. Meanwhile, the moderating effects of environmental dynamism are considered. Regression and bootstrap analysis are used to test hypotheses. The results based on empirical research show that the transactive memory system has a positive effect on the dual attributes of business model innovation; acute boundary-spanning search and concentrated boundary-spanning search affect novelty-centered business model innovation and efficiency-centered business model innovation, respectively, and play mediating roles. Meanwhile, environmental dynamism positively moderates the relationship between acute boundary-spanning search and novelty-centered business model innovation, but negatively moderates the relationship between concentrated boundary-spanning and business efficiency-centered model innovation efficiency.

Does the Perception of Unemployment Risk Affect the Willingness of Urban Citizenship of Chinese New-Generation Migrant Workers?

Presently, the pace of transformation within traditional sectors of the Chinese economy is accelerating, resulting in the gradual demise of traditional occupations. Consequently, the emerging cohort of Chinese migrant workers confronts unprecedented challenges pertaining to their professional prospects and assimilation into urban society. In order to examine the impact of perceived unemployment risk on the inclination of new-generation migrant workers to embrace urban citizenship, we introduce the notions of environmental dynamism and active skill development as moderating variables. Employing multiple regression analysis, we construct a dual moderating model. The results of our study indicate that the perception of unemployment risk positively predicts the willingness of new-generation migrant workers to embrace urban citizenship. Moreover, we observe that environmental dynamism exerts a positive moderating influence on the relationship between unemployment risk perception and citizenship inclination. Additionally, active skill development serves to positively moderate the moderating effect of environmental dynamism. This study not only reveals the unique influence of subjective unemployment risk perception on the inclination towards urban citizenship but also sheds light on the role played by environmental dynamism and active skill development in this context. The findings of this research further enhance the theoretical framework pertaining to the study of urban citizenship inclination among new-generation Chinese migrant workers.

Corporate entrepreneurship and firm performance relationship under the moderating effect of environmental dynamism: Replication and extension analysis

The purpose of this research is to understand the relationship between corporate entrepreneurship and firm performance of large firms in emerging economies, with consideration of the moderating effect of environmental dynamism. This is a quantitative and cross-sectional study, utilizing a multivariate second-order hierarchical component model. The partial least squares structural equation modeling method was employed for analysis. The findings indicate a highly positive impact of entrepreneurial orientation on profitability, while corporate venturing had a high but negative impact on profitability. Regarding the growth model, it was shown that entrepreneurial orientation had a positive but statistically insignificant impact on firm growth, while corporate venturing had a highly negative but statistically insignificant impact on firm growth. Interestingly, the results indicate that environmental dynamism did not have a moderating effect in this context. This paper has significant implications for senior management decision-making regarding the importance of corporate entrepreneurship in the growth and profitability of companies. It is recommended that large companies invest in entrepreneurial orientation because of its positive influence on profitability. This research fills a gap in the literature on the relationship between corporate entrepreneurship and firm performance in large companies in emerging economies. It highlights the importance of context-specific contingencies to the impact of corporate entrepreneurship on the performance of large companies and cautions against generalizing results across different countries, even those with seemingly similar contexts. The study confirms the positive relationship between entrepreneurial orientation and corporate profitability, particularly for large companies.

THE MODERATING EFFECT OF ENVIRONMENTAL DYNAMISM IN THE RELATIONSHIP BETWEEN INNOVATION CAPABILITY AND PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

The manufacturing sector is well known for its significance in upholding the economic prosperity of many nations. However, the manufacturing sector’s contribution to the gross domestic product has been consistently falling across the last few years, giving rise to fears of a premature de-industrialization phenomenon in Kenya. A growing research literature posits that the innovation capability can be considered a theoretical answer to the question of how organizations in various industries are able to achieve and sustain superior performance in turbulent environments. However, scholars still lack a complete understanding of the specific innovation capability that sustain superior firm performance over time in the dynamic environment. The purpose of this study was to examine the moderating effect of environmental dynamism in the relationship between innovation capability and performance of manufacturing firms in Nairobi City County, Kenya. The study employed the correlational, cross-sectional survey research design. The proportionate stratified random sampling technique was used to select a sample size of 228 manufacturing firms from a target population of 526 manufacturing firms in Nairobi City County, Kenya. The Pearson’s product moment correlation analysis results indicated that product innovation capability, process innovation capability, marketing innovation capability and technological innovation capability had positive and significant relationship with performance of manufacturing firms in Nairobi City County, Kenya. The standard multiple regression results showed that product innovation capability, process innovation capability, marketing innovation capability and technological innovation capability had a positive and significant effect on performance of manufacturing firms in Nairobi City County, Kenya. The moderated multiple regression results showed that environmental dynamism had a significant moderating effect on the relationship between innovation capability and performance of manufacturing firms in Nairobi City County, Kenya. The study recommended that it is imperative for the managers to implement innovation capability and strategically manage the environmental dynamism to foster the performance of manufacturing firms. Policy makers should consider initiating policy review to encourage stakeholders to implement innovation capability and strategically manage the environmental dynamism to foster the performance of manufacturing firms. The study pointed to several intriguing paths for future research.

Improving innovation performance through learning capability and adaptive capability: The moderating role of big data analytics

ABSTRACT Organizations’ learning capability (LC) and adaptive capability (AC) are very important for addressing complex challenges and performance, particularly in situations of environmental dynamism (ED). Drawing on the theory of the resource-based view (RBV) and an uncertainty perspective, this study theorised and examined how big data analytics (BD) improve organisations’ innovation performance (IP). Based on a sample of 228 respondents in Taiwan, structural equation modelling was used to investigate the effects of LC and AC on IP as well as the moderating effects of ED and BD among these major dimensions in the context of container shipping. These findings show that LC had a positive influence on both AC and IP. Additionally, both AC and BD had a positive influence on IP. Although ED negatively moderated the effect of LC, AC, and IP, we found that BD had a positively moderating effect on these dimensions, and thus improved performance.

How Do Interfirm Relationships Affect Altruistic Extra-Role Behavior? The Mediating Effect of Organizational Learning

ABSTRACT Purpose This study aims to explore how personal ties and organizational ties between a distributor and its manufacturer influence the altruistic extra-role behavior of the focal distributor and the mediating effect of organizational learning, as well as the moderating effect of environmental dynamism, on the relationship between interfirm relationships and organizational learning. Methodology/approach The authors collect data from 618 household appliance distributors from Mainland China to support most hypotheses. The multilevel regression analysis and bootstrap test are used to test the hypotheses. Findings Both personal ties and organizational ties positively affect distributor organizational learning. Environmental dynamism strengthens the positive relationship between organizational ties and distributor organizational learning; distributor organizational learning plays a mediating role in the positive relationship between interfirm and altruistic extra-role behavior. At the same time, the mediating effect of distributor organizational learning between interfirm relationships and altruistic extra-role behavior becomes stronger with the increase of environmental dynamism. Research implications This study integrates the concept of organizational learning into the framework of research on the relationship between inter-firm relationships and extra-role altruistic behavior. In the background of a global epidemic, the concept of environmental dynamics is used as a boundary effect to deepen our understanding of relationships. The study also offers suggestions on how managers consider inter-firm relationships and extra-role altruistic behavior. Originality/value/contributions This study explores organizational learning as an intermediary mechanism between interfirm relationships and altruistic extra-role behavior, enriching the literature on altruistic extra-role behavior. It uncovers the boundary effect of environmental dynamics to deepen our understanding of the effect of interfirm relationships on organizational learning. It also discusses the antecedents of altruistic extra-role behavior by integrating previous studies and considering the impact of the two types of interfirm relationships simultaneously. Practical implications This study provides several insightful implications for the managers in understanding the impacts of interfirm relationships on altruistic extra-role behavior in business-to-business marketing.

Innovation in manufacturing SMEs during the COVID-19 pandemic: How does environmental dynamism reinforce employee proactive behavior?

In a turbulent environment such as during the COVID-19 pandemic crisis, employee proactive behavior is imperative for innovation initiatives in small- and medium-sized enterprises (SMEs). We ask whether and how turbulent environments motivate employees to proactively engage in innovative behavior. This study argues that employees' perceptions of environmental dynamism reinforce employee proactive innovation behavior. Using a sample comprising 262 innovative employees from 40 manufacturing SMEs in Taiwan, this study tests a moderated-mediation model in which environmental dynamism is expected to increase the indirect effect of creative self-efficacy on employee innovative behavior through knowledge acquisition. The results confirm the mediating role of knowledge acquisition and the positive moderating effect of environmental dynamism. This study sheds light on the issue of employee proactive behavior in response to changing environments.

Value innovation and marketing capabilities in dynamic environments: a dynamic capability perspective

ABSTRACT In highly competitive markets, organizations need to engage in the disruptive type of innovation to create superior value for customers. Drawing on the dynamic capabilities view; this paper explores value innovation as a dynamic capability for reconfiguring the resource-base of the organization in pursuit of competitive advantage. This paper first investigates the mediating role of operational marketing capabilities, namely pricing, product development, channel management, and marketing implementation, in the relationship between value innovation and organizational outcomes. Secondly, it explores the moderating effects of environmental dynamism in terms of market turbulence and technological turbulence in the relationship between value innovation and marketing capabilities. The study, employing structural equation modelling, is based on data from 414 senior managers. The findings indicate that value innovation positively affects these operational marketing capabilities, which in turn leads to enhanced organizational outcomes. Further, in more turbulent environments, the relationship between value innovation and operational marketing capabilities is stronger.

Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions

This study investigates the effects of firm-level capabilities, and their relationships with strategic agility and the international performance of small and medium-sized enterprises (SMEs). Using time-lagged data from 233 internationalizing SMEs from Ghana, we test the direct relationships between SMEs’ capabilities and strategic agility. Additionally, we examine the indirect relationships between technological and networking capabilities and superior performance in international markets through the mediating mechanism of strategic agility. We also investigate the moderating effects of environmental dynamism and internationalization knowledge on the relationship between strategic agility and international performance. Our findings provide a nuanced view of the relationship between the firm-level capabilities, strategic agility and SMEs’ international performance.

Dynamic and marketing capabilities as determinants of firm performance: evidence from automotive industry

Purpose This study aims to explore the roles and relations of dynamic capabilities (DCs) and marketing capabilities (MCs) to generate firm performance through new empirical data from the automotive industry in an emerging market, Turkey, where volatile market conditions may compel firms to use both their DCs and MCs. The automotive industry dynamic character, which is shaped by fierce competition among car manufacturers, fluctuating customer demands and strong effect of environmental forces, provides an ideal context for examining the performance outcomes of MC and DC in non-static environments. This study aims to show whether better financial performance can be achieved through an integrated MC and DC framework; if the level of environmental dynamism (ED) influences the utilization of MCs; and the impact of MC and DC convergence on firm performance by using emerging market data, which is rare in the extant literature. Design/methodology/approach This paper empirically investigates the role of MCs on the relationship between DCs and firm performance and the effect of ED in marketing capability development through a study of 162 top level managers from the automotive industry in Turkey using multiple regression methods. A self-administered questionnaire was used to collect data. A maximum concern was given to obtain at least three questionnaires from each firm to minimize the risk of getting biased answers from only one manager. Findings The data were analyzed by the regression method, and the mediation and moderation tests were conducted to test the established hypotheses. The direct relationship between MCs and firm performance was examined through linear regression, and a significant relationship was found (ß = 0.408; t = 5.656; p < 0.001). Pricing (ß = 0.404; p < 0.001), marketing research (ß = 0.367; p < 0.001) and marketing strategy and implementation (ß = 0.336; p < 0.001) had the strongest association with firm performance. The mediating role of MC on the relationship between DC and firm performance was assessed, and the analysis result yielded a significant result (ß = 0.439; t = 6.174; p < 0.001). Finally, the moderating effect of ED on the direct relationship between MC and firm performance was assessed. Yet, the interaction term was insignificant (ß = 0.013; t = 0.103; p = 0.918) in predicting firm performance. Research limitations/implications Although the data set covers a broad range of firms operating in the Turkish automotive industry, the generalization of findings should only be possible through obtaining fresh evidence from other emerging markets that possess the similar market characteristics of Turkey. The cross-sectional nature of the study may offer insights only for a certain period of time; thus, additional longitudinal studies are recommended to see the dynamic changes on the constructs and relationships between them. Future studies may also include qualitative methods, i.e. interviews with top managers to have a deeper understanding on how DC–MC interaction creates better performance. Practical implications This study empirically shows the importance of MCs for firm performance; thus, managers should allocate significant efforts and resources for improving MCs. The demand for the electric and even autonomous vehicles is likely to increase in the following years, and this new era in the automotive industry requires more R&D and innovation-based products, i.e. green vehicles with low carbon footprint, the use of robotics and long-life batteries for electric vehicles. The cost-related pricing may no longer be a competitive advantage for the firms in emerging markets such as Turkish automotive industry; thus, more investment for disruptive technologies should be considered. Originality/value The results show that MCs of firms mediated the relationship between DCs and economic performance. Yet, ED did not play a moderating role on the relationships between MCs and performance. It is concluded that DCs were associated with improved firm performance via MCs. Furthermore, the insignificant impact of ED on the development of MCs leading to better performance was explained by firms’ given over-performing efforts in the context of emerging markets.

IS capabilities, supply chain collaboration and quality performance in services: the moderating effect of environmental dynamism

PurposeThe purpose of this study is to explore the effects that information systems (IS) capabilities can have on supplier collaboration and customer collaboration and on quality performance in service contexts. In addition, the study examines how supply chain collaboration influences quality performance under various levels of environmental dynamism.Design/methodology/approachThe conceptual model for this study is designed on the basis of the resource-based view (RBV) and dynamic capabilities view (DCV). A survey of 156 UK service firms was conducted and the data analyzed to test theoretical model using the structural equation modeling method. Furthermore, the moderating effect of environmental dynamism was investigated.FindingsThe results show that IS capabilities are positively associated with supply chain collaboration. Both supplier collaboration and customer collaboration are positively related to quality performance. Supplier collaboration has a positive effect on customer collaboration. Environmental dynamism significantly moderates the relationship between customer collaboration and quality performance, but no moderating effect on the relationship between supplier collaboration and quality performance.Originality/valueThis study takes a step toward quelling concerns about the business value of IS, contributing to the development and validation of the measurement of IS capabilities in the service supply chain context. The study deepens our understanding of supply chain collaboration by making a distinction between supplier collaboration and customer collaboration and investigating the correlation of supplier collaboration and customer collaboration. The findings extend the empirical application of RBV and DCV. In addition, this study’s findings direct service firms to develop IS capabilities that can enhance specific kinds of supply chain collaboration activities, thereby enabling improved quality performance.