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Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?

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  • Haili Zhang

    (School of Economics and Management, Xi’an Technological University, Xi’an 710021, China)

  • Yufan Wang

    (School of Economics and Management, Xi’an Technological University, Xi’an 710021, China)

  • Michael Song

    (School of Economics and Management, Xi’an Technological University, Xi’an 710021, China)

Abstract

Competitive intensity presents challenges to new ventures. Capabilities may lead to sustainable new venture performance. Yet, few studies have explored how competitive intensity moderates the effects of capabilities on sustainable new venture performance. Based on capability-based view, this study develops a research model to investigate how new ventures translate capabilities (marketing, technology, market-linking, and information technology capabilities) to achieve sustainability of new venture growth and performance under the different levels of competitive intensity. Using data collected from 146 U.S. new ventures, this study uses ordinary least squares regression analysis to test the research model and employs “pick-a-point” approach to examine how capabilities affect sustainable new venture performance at different levels of competitive intensity. The empirical results suggest that increasing competitive intensity decreases, not increases , the positive effects of marketing capabilities on performance. When competitive intensity is very high, the positive effects of marketing capabilities on performance become insignificant. In contrast, the positive effects of market-linking capabilities on performance increase, not decrease , as competitive intensity increases. For technology and information technology capabilities, there are no moderating effects of competitive intensity. The theoretical and managerial implications are suggested for sustainable entrepreneurship and sustainable development of new enterprises.

Suggested Citation

  • Haili Zhang & Yufan Wang & Michael Song, 2019. "Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:12:y:2019:i:1:p:253-:d:302723
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    References listed on IDEAS

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    2. Dan Long & Houhong Wang & Peili Wang, 2021. "Built to Sustain: The Effect of Entrepreneurial Decision-Making Logic on New Venture Sustainability," Sustainability, MDPI, vol. 13(4), pages 1-20, February.

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