Dynamic Capabilities and Organizational Performance: A Meta‐Analytic Evaluation and Extension

TLDR

The study meta‑analyses prior empirical work to advance the dynamic capabilities view. The authors evaluate the DCV’s core tenets—positive dynamic‑capability–performance links and stronger effects in technologically dynamic industries—and empirically test higher‑order versus lower‑order dynamic capabilities and economic context differences. Results confirm a positive dynamic‑capability–performance relationship, reveal that higher‑order capabilities and developing‑economy contexts strengthen this link, and suggest moderators for the weaker industry‑dynamism effect.

Abstract

Abstract We move the dynamic capabilities view (DCV) forward in two important ways by meta‐analysing prior empirical studies. First, we evaluate the two core theoretical tenets of the DCV: (1) Dynamic capabilities are positively related to performance, and (2) this relationship is stronger in industries with higher levels of technological dynamism. We find support for the former (r c = 0.296) but not for the latter, though results suggest the existence of moderators. Second, we theorize and demonstrate empirically that higher‐order dynamic capabilities are more strongly related to performance than lower‐order dynamic capabilities, lower‐order dynamic capabilities partially mediate the relationship between higher‐order dynamic capabilities and performance, and dynamic capabilities contribute more to performance in developing economies than in developed economies. These findings illustrate how the nature of the dynamic capability and the economic context in which it is utilized shape its value, thus offering a more nuanced conceptualization of the dynamic capabilities‐performance relationship.