ISSN: 3048-622X

The Impact of Dynamic Capabilities on Firm Performance: A Longitudinal Study of Polish Manufacturing SMEs in the Era of Digital Transformation

Abstract

This study investigates the impact of dynamic capabilities on the performance of Polish manufacturing Small and Medium Enterprises (SMEs) within the context of ongoing digital transformation. We examine the mediating role of resource orchestration and absorptive capacity in translating dynamic capabilities into improved firm performance. Employing a longitudinal research design and analyzing data collected from a panel of Polish manufacturing SMEs over a five-year period, our findings reveal a significant positive relationship between dynamic capabilities and firm performance. Furthermore, we find that resource orchestration and absorptive capacity partially mediate this relationship, highlighting their importance in effectively deploying and leveraging internal and external resources for competitive advantage. The study contributes to the dynamic capabilities literature by providing empirical evidence from a transitional economy context and offering practical insights for SMEs navigating the challenges and opportunities of digital transformation.

References

  1. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120
  2. Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128-152
  3. DÄ…browski, A., & Pietrzak, M. B. (2019). Dynamic capabilities and innovation performance of automotive SMEs in Poland. Entrepreneurial Business and Economics Review, 7(4), 127-146
  4. Di Stefano, G., Peteraf, M., & Verona, G. (2014). Dynamic capabilities deconstructed: A bibliographic investigation into the antecedents, drivers, and consequences of the development of dynamic capabilities. Industrial and Corporate Change, 23(5), 1187-1232
  5. Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they?. Strategic Management Journal, 21(10-11), 1105-1121
  6. Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109-122
  7. Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M. A., Singh, H., Teece, D. J., & Winter, S. G. (2007). Dynamic capabilities: Understanding strategic change in organizations. Blackwell Publishing
  8. Kowalik, K., & Przybysz, A. (2017). Dynamic capabilities and competitive advantage of IT SMEs in Poland. Management, 21(1), 115-128
  9. Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40(3), 879-891
  10. Sirmon, D. G., Hitt, M. A., Arregle, J. L., & Campbell, J. T. (2011). The dynamic interplay of capability strengths and weaknesses: Investigating the bases for strategic action. Strategic Management Journal, 32(13), 1386-1414
  11. Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350
  12. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533
  13. Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2), 185-203
  14. Zahra, S. A., Sapienza, H. J., & Gedajlovic, E. (2006). Corporate entrepreneurship as a dynamic capability: A review of the past three decades of research. Journal of Management Studies, 43(5), 917-935
  15. Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182
  16. Wang, C. L., & Ahmed, P. K. (2007). Dynamic capabilities: A review and research agenda. International Journal of Management Reviews, 9(1), 31-51
  17. Winter, S. G. (2003). Understanding dynamic capabilities. Strategic Management Journal, 24*(10), 991-995
Download PDF

How to Cite

Leszek Ziora, (2025-04-28 19:37:15.093). The Impact of Dynamic Capabilities on Firm Performance: A Longitudinal Study of Polish Manufacturing SMEs in the Era of Digital Transformation. JANOLI International Journal of Economics and Management Science , Volume MejgkunYNoDF1a6qqjpe, Issue 1.