Learning antecedents and organizational consequences of dynamic capabilities : a study of Malaysian industry

Dynamic capabilities explain why some firms are successful in dynamic business environments. Despite the progress in the field of dynamic capabilities, there still remains lack of understanding in terms of conceptualization, creation, and impact of dynamic capabilities. This study addresses these research gaps. Data was collected via survey from the high-tech industry of Malaysia. Using PLS path analysis of data from 138 high-tech firms, the study finds dynamic capabilities to be a multidimensional construct represented by absorptive capability, adaptive capability, and innovative capability. Market research, benchmarking, and in-house R&D are identified to be significant learning mechanisms that facilitate creation of dynamic capabilities. The results also find dynamic capabilities facilitate achievement of organizational effectiveness via product innovation and market innovation, and organizational efficiency through process innovation and behavioral innovation. This study contributes to current understanding in the field by validating a multidimensional conceptualization of dynamic capabilities, elucidating three learning mechanisms as significant antecedents in the development of dynamic capabilities, and identifying the innovation paths through which dynamic capabilities impact organizational effectiveness and organizational efficiency.