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Author:Drnevich, P. L.
Kriauciunas, A. P.
Title:Clarifying the conditions and limits of the contributions of ordinary and dynamic capabilities to relative firm performance
Journal:Strategic Management Journal
2011 : MAR, VOL. 32:3 p. 254-279
Index terms:strategic planning
companies
organizational behaviour
performance measurement
corporate culture
factor analysis
Chile
Language:eng
Abstract:This article examines the conditions where ordinary and dynamic capabilities contribute to higher relative company performance. The positive and negative contributions of capabilities to relative company performance are investigated within a sample of Chilean companies. It is found that environmental dynamism negatively affects the contribution of ordinary capabilities and positively affects the contribution of dynamic capabilities to relative company performance. It is also found that the direct effects of capabilities are stronger with a process-level performance measure, while the effects of environmental dynamism and heterogeneity are stronger with a company-level measure.
SCIMA record nr: 276229
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