17Jul 2017

THE EFFECT OF ENVIRONMENTAL DYNAMISM, DYNAMIC MANAGERIAL CAPABILITIES, AND DELIBERATE ORGANIZATIONAL LEARNING ON THE SME PERFORMANCE WITH DYNAMIC CAPABILITIES AS MEDIATOR VARIABLE.

  • Postgraduate School, Widya Mandala Catholic University.
  • Faculty of Business and Economics, Airlangga University.
Crossref Cited-by Linking logo
  • Abstract
  • Keywords
  • References
  • Cite This Article as
  • Corresponding Author

Rapid change on business environment requires the business practitioner to prepare in order to stay exist and keep efficient. The company with good quality will be able to take an advantage when compete with other companies. SMEs in Indonesia influences national economic growth. SMEs have been proved as a resilience entity when face the global crisis. Also, SMEs contribute positively to the society. This study was conducted on SMEs in Surabaya to assess the effect on dynamic capabilities when faced the external environmental changes which are frequently uncontrollable and unpredictable. The research sample is 114 SMEs in Surabaya area. The data will be analyzed by structural equation modeling. The study found that environmental dynamism, dynamic managerial capabilities, and deliberate organizational learning gave a considerable effect on dynamic capability, however these variables did not prove a significant effect on firm performance. The dynamic capability variable mediated the relationship between environmental dynamism, dynamic managerial capabilities and deliberate organizational learning towards firm performance.


  1. . (1996). Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration. Organization Science, 7 (4), p. 375-387.
  2. Grunbaum, Niels Nolsoe & Stenger, Marianne (2013). Dynamic Capabilities-Are They Profitable? 1 st annual Intenational Interdisciplinary Conference. AIIC.
  3. Griffith, David.A. & Harvey, Michael G. (2001). A Resource Perspective of Global Dynamic Capabilities. Journal of International Business Studies,32 (3), p. 597-606.
  4. Hambrick, Donald C. & Mason, Phyllis A. (1984). Upper Echelons: The Organization As A Reflection of It?s Top Managers. Academy of Management Review, 9(2), p. 193-206.
  5. Harreld, Bruce J. & O?Reilly III. & Charles A. & Tushman, Michael L. (2006). Dynamic Capabilities at IBM: Driving Strategy into Action.? California management Review. 49 (4), p. 21-43.
  6. Helfat, Constance E. & Peteraf, Margaret A. (2003). The Dynamic Resource-Based View: Capability Lifecycles. Strategic Management Journal, 24(10), p. 997-1010.
  7. Helfat, Constance E. & Peteraf, Margaret A. (2009). Understanding Dynamic Capabilities: Progress Along a Developmental Path. Strategic Organization, 7 (1), p. 91-102.
  8. Helfat, Constance E. et al. (2007). Dynamic Capabilities. Understanding Strategic Change In Organization. Blackwell Publishing, London.
  9. https://infoukm.wordpress.com/2008/08/11/kinerja-ukm-di-indonesia/
  10. Idris, Wael. & Mohd, Subhi. & Momani, Raed A. (2013). Impact of Environmental Dynamism on Marketing Strategy Comprehensiveness and Organizational Performance. International Journal of Business and management, 8 (9), p. 42-44.
  11. Jiao, H. & Alon, I. & Cui, Y. (2011). Environmental Dynamism, Innovation, and Dynamic Capabilities: The Case of China. Journal of Enterprising Communities, People and Places in the Global Economy, 5 (2), p. 131-144.
  12. Johnson, DR. & Hoopes, DG. (2003). Managerial Cognition, Sunk Costs, and The Evolution of Industry Structure. Strategic Management Journal, 24(10), p. 1017-1042.
  13. Landroguez, Silvia Martelo. et al. (2011). Creating Dynamic Capabilities To Increase Costumer Value. Management Decision, 49(7), p. 1141-1159.
  14. Leonard-Barton, D. (1992). Core Capabilities And Core Rigidities: A Paradox In Managing New Product Development. Strategic Management Journal, 13, 111-125.
  15. Li, Da-Yuan. & Liu, Juan. (2014). Dynamic Capabilities, Environmental Dynamism, and Competitive Advantage: Evidence from China. Journal of Business Research, 6, p. 2793-2799.
  16. Liao, Jianwen. & Kickul, Jill R. & Ma, Hao. (2009). Organizational Dynamic Capability and Innovation: An Empirical Examination of Internet Firms. Journal of Small Business Management, 47(3), p. 263-286.
  17. Lopez, Salvador Vivas. (2005). Competitive Advantage and Strategy Formulation, The key role of Dynamic Capabilities. Management Decision, 43 (5), p. 661-669.
  18. Makadok, Richard. (2001). Toward a Synthesis of The Resource-Based and Dynamic-Capability Views of Rent Creation. Strategic Management Journal, 22, p. 387-401.
  19. Maltz, A. C. (2001).?Defining and Measuring Organizational Success: A Multi-Dimensional Framework. ProQuest Dissertations and Theses, Stevens Institute of Technology. Retrieved March, 31, 2014, fromhttp://search.proquest.com/docview/304754648?accountid=45762.
  20. Maltz, A. C., Shenhar, A. J. & Reilly, R. R. (2003). Beyond the Balanced Scorecard: Refining the Search for Organizational Success Measures.?Long Range Planning,?36 (2), p. 187-204.
  21. March JG. (1991). Exploration and Exploitation In Organizational Learning. Organization Science, 2,1-13
  22. McKelvie, Alexander & Davidsson, Per. (2009). From Resource Based to Dynamic Capabilities: an invvestigation of New Firms. British Journal of Management, 20, p. 563-580.
  23. (2007). Sistem Perencanaan dan Pengendalian Manajemen: Sistem Pelipatganda Kinerja Perusahaan. Jakarta: Salemba Empat.
  24. Newbert, Scott L. (2005). New Firm Foundation: A Dynamic Capability Perspective. Journal of Small Business Management, 28 (2), p. 121-146.
  25. Pablo, Amy L. et al (2007). Identifying, Enabling and Managing Dynamic Capabilities in Public Sector. Journal of management Studies, 44 (5), p. 687-708.
  26. Peteraf, Margaret A. (1993). The Cornerstones of Competitive Advantage: A Resource-Based View. Strategic Management Journal,14, p. 179-191.
  27. Petroni, Alberto. (1998). The Analysis Of Dynamic Capabilities in a Competence-Oriented Organization, Technovation, 18 (3), p. 179-189.
  28. Pinho, Jose Carlos MR. (2011), Social Capital and Dynamic Capabilities in International Performance in SME?s. Journal of Strategy and Management, 4 (4), p. 404-421.
  29. Prasetyo, Tommy & Harjanti, Dhyah. (2013). Modal Sosial Pengusaha Mikro dan Kecil Sektor Informal dan Hubungannya Dengan Kinerja Bisnis di Wilayah Jawa Timur. Agora, 1(3)
  30. Porter, Michael E. (1991). Towards a Dynamic Theory of Strategy. Strategic Management Journal,12, p. 95-117.
  31. Priem, Richard L. & Butler John E. (2007). Is The Resource based View a Useful Perspective for Strategic Management Research. Academy of Management Review, 32 (1), p. 22-40.
  32. Raduan et al, (2009). A Conceptual Framework of the Relationship Between Organizational Resources, Capabilities, Systems, Competitive Advantage and Performance. Research Journal of International Studies,12, p. 45-58.
  33. (2012). Pengaruh Orientasi Kewirausahaan Terhadap Pembelajaran Organisasi, Keunggulan Daya Saing Berkelanjutan Dan Kinerja Usaha pada UMKM Kerajinan Kulit Berorientasi Ekspor di Sidoarjo. JEAM, XI(2).
  34. Rindova, Violina P. & Kotha, Suresh. (2001). Continuous ?morphing?: Competing Through Dynamic Capabilities, Form and Function. Academy of Management Journal, 44 (6), p. 1263-1280.
  35. Romme, A. & Georges L. & Zollo, Maurizo. & Berenda, Peter. (2010). Dynamic Capabilities, Deliberate Learning And Environmental Dynamism: A Simulation Model. Industrial and Corporate change,19 (4), p. 1271-1299.
  36. Schreyogg, Georg. & Kliesch-eberl, Martina. (2007). How Dynamic can Organizational Capabilities be ? Towards a Dual Process Model of Capability Dynamization. Strategic Management Journal, 28, p. 913-933.
  37. Sirmon, David G. & Hitt, Michael A. & Ireland, R Duanne. (2007). Managing Firm Resources in Dynamic Environments to Create Value: Looking Inside The Black Box. Academy of Management Review, 32(1), p. 273-292.
  38. Smith, Mark Easterby & Lyles, Marjorie & Peteraf, Margaret A. (2009). Dynamic Capabilities: Current Debates and Future Direction. British Journal of Management, 20, p. 51-58.
  39. Stifano, Glada Di & Peteraf, Margaret & Verona, Gianmario (2009). Dynamic Capabilities Deconstructed: a Bibliograpic Investigation into The Origin Development, and Future Directions of The Research Domain, Industrial and Corporate Change,19 (4), p. 1187-1204.
  40. Sohi, Ravipreet S. (1996). The Effects of Environmental Dynamism and Heterogeneity on Salespeople?s Role Perceptions, Performance and Job Satisfaction. European Journal of Marketing, 30 (7), p. 49-67.
  41. Teece, David. & Pisano, Gary. (1994). The Dynamic Capabilities of Firms: an Introduction. Industrial and Corporate Change, 3(3), p. 537-556.
  42. Teece, David. & Pisano, Gary. & Shuen Amy. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18 (7), p. 509-533.
  43. Thesman, Tresia & Ardianti, R.R. Retno. (2014). Hubungan Entrepreunial Motivation Terhadap Kinerja Bisnis Usaha Mikro dan Kecil Pada Sektor Makanan dan Minuman di Surabaya dan Sidoarjo, Agora, 2 (2).
  44. Tiantian, Gao & Yezhuang, Tian & Qianqian, Yu. (2014). Impact of Manufacturing Dynamic Capabilities on Enterprise Performance-the nonlinear moderating effect of Environmental Dynamism. Journal of Applied Sciences, 14, p. 2067-2072.
  45. Ting, Hsiang-Feng & Wang, Hsien-Bin. & Wang, Dja-Shin. (2012). The Moderating Role of Environmental Dynamism on The Influence of Innovation Strategy and Firm Performance. International Journal of Innovation, Management and Technology, 3 (5), p. 517-519.
  46. Tsai, Philip Cheng & Shih, Ching Ting. (2013). Responsible Downsizing Strategy As A Panacea to Firm?s Performance: The Role of Dynamic Capabilities. International Journal of Manpower, 31 (8), p. 1015-1028.
  47. Tsai, Wenpin. & Sumantra, Ghoshal. (2007). Social Capital and Value Creation: The Role of Intrafirm Networks. The Academy of Management Journal, 41 (4), p. 464-476.
  48. Tsoukas, Haridimios & Mylnopoulos, Nikolaus. (2005). Organization as knowledge System: Knowledge, Learning, and Dynamic Capabilities. Leadership & Organization Development Journal, 26 (2), p. 209-237.
  49. Umar, Husein. (2005). Evaluasi Kinerja Perusahaan, Jakarta: Gramedia Pustaka Utama.
  50. Van den Bosch. & Frans A.J. & Volberda, Henk W. & De Boer, Michiel. (1999). Coevolution of Firm Absorptive Capacity and Knowledge Environment: Organizational Forms and Combinative Capabilities, Organization Science,10 (5), p. 551-568.
  51. Wang, Catherine L. & Ahmed, Pervaiz K. (2007). Dynamic Capabilities: a Review and Research Agenda. The International Journal of Management Reviews, 9, p. 31-51.
  52. Wenerfelt, Birger. (1984). The Resource-Based View of The Firm. Strategic Management Journal, 5, p. 171-180.
  53. Wilden, Ralf and Gudergan, Siegfried and Lings, Ian. Dynamic Capabilities and Organizational Performance, University of Technology Sydney, p. 572-579.
  54. Winter, Sydney G. (2003). Understanding Dynamic Capabilities. Strategic Management Journal, 24 (10), p. 991-995.
  55. Zahra, Shaker A. & George, Gerard. (2002). Absorptive Capacity: A Reviews, Reconceptualization, and Extension. Academy of Management Review, 27 (2), p. 185-203.
  56. Zahra, Shaker A. & Sapienza, Harry J & Davidson, Per. (2006). Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda. Entrepreneurship Theory and Practice, p. 169-187.
  57. Zhang, Michael J. (2007). Is Support for Top Manager?s Dynamic Capabilities, Environmental Dynamism, and Firm Performance: An Empirical Investigation. Journal of Business and Management,13, p. 57-77.
  58. Zollo, Maurizio & Winter, Sydney G. (2002). Deliberate Learning and the evolution of Dynamic Capabilities. Organization Science, 13, p. 339-351.
  59. Zott, Christoph. (2000). Dynamic Capabilities and The Emergent of Intra-Industry Differential Firm Performance Insights From a Simulation Study. Strategic Management Journal, 24 (2), p. 97-125.
  60. Adner, Ron, & Helfat, Constance E. (2003). Corporate Effects and Dynamic Managerial Capabilities. Strategic Management Journal, Vol 24, p. 1011-1025.
  61. Adler, Paul S, & Kwon, Seok-Woo. (2002). Social Capital: Prospects for a New Concept. Academy of Management Review, Vol 27, p. 17-36.
  62. Argyris, C, & D, Schon. (1978). Organizational Learning, Addison-Wesley, Reading, MA.
  63. Akgun, Ali E, & Keskin, Halit & Byrne, John. (2007). The moderating role of Environmental Dynamism between Firm Emotional Capability and Performance. Journal of Organizational Change Management, 21(2), p. 230-252.
  64. Ambrosini, Veronique, & Bowman, Cliff. (2009). What are Dynamic Capabilities and are they a useful construct in strategic management? International Journal of Management Reviews, 11(1), p. 29-49.
  65. Ambrosini, Veronique, & Bowman & Collier, N. (2009). Dynamic Capabilities: An Exploration of How Firms Renew Their Resource Base. British Journal Of Management, 20, p. 1-41.
  66. Aragon-Correa, & J.Alberto & Sharma, Sanjay. (2003). A Contingent Resource Based-View of Proactive Corporate Environmental Strategy. Academy Of Management Review, 28, p. 71-88.
  67. Arend, Richard J. (2014). Entrepreneurship and Dynamic Capabilities: How Firm Age and Size Affect The ?Capability Enhancement-SME Performance? Relationship. Small Business Economics, 42, p. 33-57.
  68. Arend, Richard J, & Bromiley, Phillip. (2014). Assessing the Dynamic Capabilities View: Spare Change, Everyone ?. Strategic Organization, 7,p.75-90.
  69. Barney,Jay. (1991). Firm Resource and Sustained Competitive Advantage. Journal of Management, 17, p. 99-120
  70. Baum, Joel A.C. & Korn, Helaine J. (1996). Competitive Dynamics of Interfirm Rivalry. Academy of Management Journal, 39(2), p. 255-291.
  71. Bustinza, Of, & Moline, L.M, & Aranda, D. Arias. (2010). Organizational Learning and Performance: Relationship Between The Dynamic And Operational Capabilities of The Firm. African Journal Of Business Management, 4, p. 4067-4078.
  72. Castanias, RP. & Helfat, CE. (1991). Managerial Resources and Rents. Journal Of Management,17,p. 155-171.
  73. Cepeda, Gabriel. & Vera, Dusya. (2007). Dynamic Capabilities and Operational Capabilities: A Knowledge Management Perspective. Journal of Business Research, 60, p. 426-437.
  74. Chang, Hung-Jung. & Wang, Hsien-Bin. (2013). A case study of Dynamic Competitive Advantage. The International Journal of Organizational Innovation, 6 (2), p. 198-218.
  75. Chen, Ming-Jer. (1996). Competitor Analysis and Interfirm Rivalry: Toward A Theoretical Integration. Academy of Management Review, 21(1), p. 100-134.
  76. Chien, Shih-Yi. & Tsai, Ching Han. (2012). Dynamic Capability, knowledge, learning, and Firm Performance. Journal of Organizational Change Management, 25, p. 434-444.
  77. Christian & Ardianti, Retno RR. (2013). Analisa Modal Sosial dan Kinerja Bisnis Pada Pengusaha Sektor Formal Usaha Mikro dan Kecil di Jawa Timur. Agora,1(3).
  78. Cohen, Wesley M. & Levinthal, Daniel A. (1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1), p. 128-152.
  79. Collis, David J. (1994). Research Note: How Valuable Are Organizational Capabilities? Strategic Management Journal, 15, p. 143-152.
  80. Cool, Karen & Dierickx, Ingemar. (1993). Rivalry, Strategic Groups and Firm Profitability. Strategic Management Journal, 14, 47-59.
  81. Cowan, Robin. & Foray, Dominique. (1997). The Economics of Codification and the diffusion of Knowledge. Industrial and Corporate Change. 6(3), p. 595-622.
  82. Davidsson, Per, & Benson, Honig. (2003). The Role of Social and Human Capital Among Nascent Entrepreneurs. Journal of Business Venturing,18(3), p. 301-331
  83. Danneels, E. (2002). The Dynamics of Product Innovation and Firm Competences. Strategic Management Journal, p.1095-1121.
  84. D'Aveni, R. (1994). Hypercompetition, Free Press, New York.
  85. Dess, G.G. & Beard, D.W. (1984). Dimensions of Organizational Task Environments. Administrative Science Quarterly, 29, p.52-73.
  86. Dierickx, Ingemar & Cool, Karel. (1989). Asset Stock Accumulation and Sustainability of Competitive Advantage. Management Science, 35 (12), p. 1504-1511.
  87. Eisenhardt, Kathleen M. & Martin, Jeffrey A. (2000). Dynamic Capabilities: What are they? Strategic Management Journal, 21, p.1105-1121.
  88. Fei, Tsai. & Philip Cheng. & Ting Shih, Chih. (2013). Responsible Downsizing Strategy as A Panacea To Firm Performance: The Role of Dynamic Capabilities. International Journal of Manpower, 34(8), p. 1015-1028.
  89. Garengo, Patrizia. & Bernardi, Giovanni. (2007). Organizational Capability in SMEs. Performance Measurement As A Key System in Supporting Company Development. International Journal of Productivity and Performance Management, 56(56), p. 518-532.
  90. Gavetti, Giovani. & Levinthal, Daniel. (2000). Looking Forward and Looking Backward: Cognitive and Experiental Search. Administrative Science Quarterly, 45, p. 113-137.
  91. Gelaskanycz, MA. & Hambrick, DC. (1997). The External Ties of Top Excecutives: Implications for Strategic Choice and Performance, Administrative Science Quarterly, 42, p. 654-681.
  92. Grant, Robert M. (1991). The Resource-based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, p. 114-135.
  93. Grant, Robert M. (1996). Toward A Knowledge-based Theory of The Firm. Strategic Management Journal, 17, p. 109-122.
  94. Grant, Robert M

[Ir. Adrian Permana, Arsono Laksmana and Lena Ellitan. (2017); THE EFFECT OF ENVIRONMENTAL DYNAMISM, DYNAMIC MANAGERIAL CAPABILITIES, AND DELIBERATE ORGANIZATIONAL LEARNING ON THE SME PERFORMANCE WITH DYNAMIC CAPABILITIES AS MEDIATOR VARIABLE. Int. J. of Adv. Res. 5 (Jul). 540-551] (ISSN 2320-5407). www.journalijar.com


Adrian Permana
Widya Mandala Catholic University

DOI:


Article DOI: 10.21474/IJAR01/4750      
DOI URL: http://dx.doi.org/10.21474/IJAR01/4750