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Impact of Dynamic Capabilities on Performance in Dairy Sheep Farms in Spain

Author

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  • María Teresa Bastanchury-López

    (Department of Business Economics (Administration, Management and Organization), Applied Economics II and Fundamentals of Economic Analysis, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain)

  • Carmen De-Pablos-Heredero

    (ESIC Business & Marketing School, Department of Business Economics (Administration, Management and Organization), Applied Economics II and Fundamentals of Economic Analysis, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain)

  • Jose Luis Montes-Botella

    (Department of Applied Economy I, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain)

  • Santiago Martín-Romo-Romero

    (Department of Business Economics (Administration, Management and Organization), Applied Economics II and Fundamentals of Economic Analysis, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain)

  • Antón García

    (Animal Production Department, University of Cordoba, Rabanales University Campus, 14071 Cordoba, Spain)

Abstract

This study links the dynamic capabilities (DCs) theory with performance in dairy sheep farms in Castilla La Mancha (central Spain). The approach is novel as it seeks to understand how best results can be achieved by deploying DCs in farms. The proposal is that dynamic capabilities are interrelated to each other and present a positive impact on the farm’s economic sustainability. A mixed methods approach (a combination of qualitative and quantitative methods of research) was utilized. First, 30 indicators of dynamic capabilities (8 of absorption, 11 of integration, 9 of innovation, and 2 of profits) were selected by applying Delphi’s methodology. Second, a structural equation model (SEM) was applied over a random sample of 157 dairy sheep farms to measure the relationship between DCs and the impact of each capability on farms’ final performance. The existence of positive relationships amongst absorption, integration, and innovation capabilities was evidenced. Absorption and integration capabilities exhibited positive influences on a farm’s final performance. The knowledge of the relationships amongst dynamic capabilities is a new orientation to increase farms’ viability. These findings reveal that the application of the dynamic capabilities theory can explain best farms’ economic sustainability.

Suggested Citation

  • María Teresa Bastanchury-López & Carmen De-Pablos-Heredero & Jose Luis Montes-Botella & Santiago Martín-Romo-Romero & Antón García, 2020. "Impact of Dynamic Capabilities on Performance in Dairy Sheep Farms in Spain," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:8:p:3368-:d:348258
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    References listed on IDEAS

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    2. Villarroel-Molina Oriana & De-Pablos-Heredero Carmen & Barba Cecilio & Rangel Jaime & García Antón, 2021. "The Importance of Network Position in the Diffusion of Agricultural Innovations in Smallholders of Dual-Purpose Cattle in Mexico," Land, MDPI, vol. 10(4), pages 1-14, April.
    3. Oriana Villarroel-Molina & Carmen De-Pablos-Heredero & Jaime Rangel & María Prosperina Vitale & Antón García, 2021. "Usefulness of Network Analysis to Characterize Technology Leaders in Small Dual-Purpose Cattle Farms in Mexico," Sustainability, MDPI, vol. 13(4), pages 1-13, February.
    4. Víctor Hermano & Natalia Martín-Cruz, 2020. "The Project-Based Firm: A Theoretical Framework for Building Dynamic Capabilities," Sustainability, MDPI, vol. 12(16), pages 1-14, August.

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