Authors : John Joseph P. Villotes

Volume/Issue : Volume 11 - 2026, Issue 2 - February

Google Scholar : https://tinyurl.com/uuvypafx

Scribd : https://tinyurl.com/3ndyjesy

DOI : https://doi.org/10.38124/ijisrt/26feb1106

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Abstract : The dynamic capabilities perspective explains how firms reconfigure resources to sustain competitive advantage under conditions of environmental change. Despite extensive theoretical development, empirical findings on the relative influence of dynamic capabilities and environmental dynamism on firm performance remain context-dependent and fragmented, particularly in emerging manufacturing economies. This study examines the joint and comparative effects of dynamic capabilities and environmental dynamism on organizational performance using a convergent mixed-methods design. Quantitative data were collected from 317 managers of manufacturing firms, complemented by qualitative interviews and focus group discussions with 17 senior managers. Results show that both constructs significantly influence performance, jointly explaining 77.5% of its variance. However, dynamic capabilities demonstrate substantially stronger predictive power than environmental dynamism. Qualitative findings reveal that strategic flexibility, innovation orientation, and technology integration function as embedded managerial routines that sustain performance outcomes. The study contributes to dynamic capability theory by clarifying boundary conditions in moderately dynamic environments and extending empirical evidence to resource-constrained manufacturing contexts. Implications for theory and practice are discussed.

Keywords : Dynamic Capabilities; Environmental Dynamism; Firm Performance; Manufacturing Firms; Emerging Economy; Strategic Flexibility; Innovation Capability.

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