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When should organizational change be implemented? The moderating effect of environmental dynamism between dynamic capabilities and new venture performance
Purpose-Building from a resource-based view, this study develops a model of dynamic capabilities in China, an emerging market, with a particular focus on new ventures. With increasing research attention paid to dynamic capabilities, there is an increased need to explore in which context dynamic capabilities are more useful. The purpose of this article is to explore the moderating effect of environmental dynamism on the relationship between dynamic capabilities and new venture performance in China, an emerging market to give direction how to adapt to rapidly changing environment. Design/methodology/approach - We tested our hypotheses on a sample of new ventures in the context of China's Yangtze River Delta Region. Specifically, we sent out 350 questionnaires; 180 were collected, of which 115 were usable. We used the partial least squares (PLS) structural equation modeling approach to analyze the data and test the hypotheses. Findings-In this paper, the empirical results show that opportunity-sensing capability and reconfiguration capability have significant impacts on new venture performance. Additionally, opportunity-sensing capability and reconfiguration capability both have a stronger impact on new venture performance at higher levels of environmental dynamism. Dynamic capabilities are more effective at high degrees of environmental dynamism to implement organizational change. Originality/value - Combining theory and evidence from the study, we conducted an empirical verification of the links between capabilities development and performance in the context of China's emerging economy. This theme has not yet been studied in the current literature. Our research suggests implications for new ventures in terms of finding the right way to enhance performance through the deployment of dynamic capabilities and organizational change in hyper-competitive business environments.
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第六届(2011)中国管理学年会——组织与战略分会场论文集
2011年
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