Role of dynamic capabilities in public sector performance: a strategic management perspective

This research investigates how dynamic capabilities contribute to improving public sector performance and the degree to which strategic management facilitates their implementation. This research employs Dynamic Capabilities Theory (DCT) to assess the impact of sensing (identifying and interpreting opportunities and threats), seizing (mobilising resources to capitalise on opportunities), and transformation (realigning structures, processes, and assets to adapt to change) on organisational performance. A quantitative, non-experimental correlational research design was utilised, employing structured surveys from 193 respondents in key public energy sector enterprises in Malawi. The findings indicate that sensing and transformation capabilities substantially improve performance, while seizing capability alone does not exert a direct influence unless combined with other strategic processes. The interplay between sensing and seizing underscores the necessity for public enterprises to both identify opportunities and implement effective actions in response. Organisational capability has emerged as a vital factor, highlighting the significance of workforce competence and institutional adaptability in enhancing performance. This study advances the theory of DCT by illustrating its relevance in public sector governance constraints and presents a quantitative framework for evaluating dynamic capabilities. Policy recommendations involve enhancing seizing capability by overcoming internal bureaucratic obstacles, promoting an adaptive organisational culture, advancing leadership development, and incorporating data-driven decision-making. These measures aim to empower public enterprises to effectively manage complexity, increase responsiveness, and attain. Key Words:Dynamic capabilities, public sector performance, strategic management, energy sector, organizational adaptability