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Dynamic capabilities and firm performance in a financial crisis


  • Makkonen, Hannu
  • Pohjola, Mikko
  • Olkkonen, Rami
  • Koponen, Aki


In this study, an organization means an active actor that can, at least to some extent, adapt to the environment, mainly within the limits of its resources and capabilities. The article enhances understanding of and explains organizational adaptive behavior in weathering the storm in the business environment resulting from the global financial crisis of 2008. The literature on dynamic capabilities, organizational change, and innovation in the context of organizational performance and survival captures this kind of adaptive behavior. The empirical study builds on a quantitative survey and a qualitative case study covering the food processing, maritime, and media industries. Structural equation modeling, group analysis, and qualitative case comparisons shed light on the connection between the constructs in question. Implications for theory and practice culminate in suggestions for future research.

Suggested Citation

  • Makkonen, Hannu & Pohjola, Mikko & Olkkonen, Rami & Koponen, Aki, 2014. "Dynamic capabilities and firm performance in a financial crisis," Journal of Business Research, Elsevier, vol. 67(1), pages 2707-2719.
  • Handle: RePEc:eee:jbrese:v:67:y:2014:i:1:p:2707-2719
    DOI: 10.1016/j.jbusres.2013.03.020

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    2. Jana Hojnik & Mitja Ruzzier & Tatiana Manolova, 2017. "Eco-Innovation and Firm Efficiency: Empirical Evidence from Slovenia," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(3), pages 103-111.
    3. Soumodip Sarkar & Dulce Matos Coelho & João Maroco, 2016. "Strategic Orientations, Dynamic Capabilities, and Firm Performance: an Analysis for Knowledge Intensive Business Services," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(4), pages 1000-1020, December.
    4. Ciampi, Francesco & Demi, Stefano & Magrini, Alessandro & Marzi, Giacomo & Papa, Armando, 2021. "Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 123(C), pages 1-13.
    5. Mikalef, Patrick & Pateli, Adamantia, 2017. "Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and fsQCA," Journal of Business Research, Elsevier, vol. 70(C), pages 1-16.
    6. Wang, Yonggui & Hong, Aoran & Li, Xia & Gao, Jia, 2020. "Marketing innovations during a global crisis: A study of China firms’ response to COVID-19," Journal of Business Research, Elsevier, vol. 116(C), pages 214-220.
    7. Jensen, Are & Clausen, Tommy H., 2017. "Origins and emergence of exploration and exploitation capabilities in new technology-based firms," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 163-175.
    8. Schriber, Svante & Löwstedt, Jan, 2018. "Managing asset orchestration: A processual approach to adapting to dynamic environments," Journal of Business Research, Elsevier, vol. 90(C), pages 307-317.
    9. Hai Guo & Zhuen Yang & Ran Huang & Anqi Guo, 2020. "The digitalization and public crisis responses of small and medium enterprises: Implications from a COVID-19 survey," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-25, December.
    10. Margarida Rodrigues & Maria do Céu Alves & Cidália Oliveira & José Vale & Rui Silva, 2021. "The Impact of Strategy, Environment, and the Management System on the Foreign Subsidiary: The Implication for Open Innovation," Journal of Open Innovation: Technology, Market, and Complexity, MDPI, Open Access Journal, vol. 7(1), pages 1-23, February.
    11. Fainshmidt, Stav & Nair, Anil & Mallon, Mark R., 2017. "MNE performance during a crisis: An evolutionary perspective on the role of dynamic managerial capabilities and industry context," International Business Review, Elsevier, vol. 26(6), pages 1088-1099.
    12. Linden, Erik, 2021. "Pandemics and environmental shocks: What aviation managers should learn from COVID-19 for long-term planning," Journal of Air Transport Management, Elsevier, vol. 90(C).
    13. Ritu Singh & Parikshit Charan & Manojit Chattopadhyay, 2019. "Dynamic capabilities and responsiveness: moderating effect of organization structures and environmental dynamism," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(4), pages 301-319, December.
    14. Lu Qiu & Xiaowen Jie & Yanan Wang & Minjuan Zhao, 2020. "Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 146-165, January.
    15. Aimilia Protogerou & Yannis D. Caloghirou & Glykeria Karagouni, 2014. "The relevance of the 'dynamic capabilities' perspective in low-tech sectors," Chapters, in: Hartmut Hirsch-Kreinsen & Isabel Schwinge (ed.), Knowledge-Intensive Entrepreneurship in Low-Tech Industries, chapter 7, pages 138-165, Edward Elgar Publishing.
    16. Adelheid Holl & Ruth Rama, 2015. "Economic crisis and innovation: Do regions matter?," ERSA conference papers ersa15p87, European Regional Science Association.
    17. Elena Cefis & Orietta Marsili, 2018. "Good Times, Bad Times: Innovation and Survival over the Business Cycle," LEM Papers Series 2018/02, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    18. Klaus S. Friesenbichler & Jürgen Janger & Agnes Kügler & Andreas Reinstaller, 2020. "Auswirkungen der COVID-19-Pandemie auf die Forschungs- und Innovationsaktivität," WIFO Studies, WIFO, number 66049.
    19. Christine Vallaster, 2017. "Managing a Company Crisis through Strategic Corporate Social Responsibility: A Practice‐Based Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 509-523, November.
    20. Lina Liu & Bo Yu & Weiwei Wu, 2019. "The Formation and Effects of Exploitative Dynamic Capabilities and Explorative Dynamic Capabilities: An Empirical Study," Sustainability, MDPI, Open Access Journal, vol. 11(9), pages 1-21, May.
    21. Rui Silva & Cidália Oliveira, 2020. "The Influence of Innovation in Tangible and Intangible Resource Allocation: A Qualitative Multi Case Study," Sustainability, MDPI, Open Access Journal, vol. 12(12), pages 1-21, June.
    22. Rima Zitkiene & Egle Kazlauskiene & Mindaugas Deksnys, 2015. "Dynamic Capabilities for Service Innovation," MIC 2015: Managing Sustainable Growth; Proceedings of the Joint International Conference, Portorož, Slovenia, 28–30 May 2015,, University of Primorska, Faculty of Management Koper.
    23. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    24. Ana Ferreira & Ana Lúcia Teixeira & Ana Roque Dantas, 2015. "Non-technological innovation activities mediate the impacts of the intra- and extra-organizational contexts on technological innovation outputs," Enterprise and Work Innovation Studies, Universidade Nova de Lisboa, IET/CICS.NOVA-Interdisciplinary Centre on Social Sciences, Faculty of Science and Technology, vol. 11(11), pages 9-43, December.
    25. Mann, Manveer & Byun, Sang-Eun, 2017. "To retrench or invest? Turnaround strategies during a recessionary time," Journal of Business Research, Elsevier, vol. 80(C), pages 24-34.

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