Orchestration of the complex environmental context: how does strategic management affect and dynamic capabilities mediate performance?

Abstract

Purpose

This paper aims to understand better how strategic management (SM) affects organizational and operational performance by examining the mediating role of dynamic capabilities (DCs) in complex environments.

Design/methodology/approach

This study uses a survey of a sample of managers (n = 480) from each logistics firm and applies structural equation modeling to determine the relationships among variables.

Findings

The analyses identify SM directly and DCs as a mediator significant antecedent for the operational performance; further, environmental complexity shows an impact as a significant factor on both variables.

Research limitations/implications

One of the managerial implications is that acquiring-sensing the environment should be orchestrated to be effective.

Originality/value

Previous DC literature studied underdeveloped DCs in complex environments and ignored the manager’s role as a connection between the environment and the firm. This paper contributes to the topic in three important ways: first, it clarifies the operational performance from the combination of the design of the DCs and the SM characteristics within the complex environment; second, the paper specifies that microfoundations of DCs are essential in the drive’s differences in the performance of the firms; and third, it clarifies regarding the role of the complex external environment rather than dynamic ones.

Citation

Yıldırım Özmutlu, S. and Arun, K. (2023), "Orchestration of the complex environmental context: how does strategic management affect and dynamic capabilities mediate performance?", Kybernetes, Vol. 52 No. 12, pp. 6144-6162. https://doi.org/10.1108/K-04-2022-0571