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Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability

Author

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  • Jorge Ferreira

    (Faculty of Economics at University of Coimbra)

  • Sofia Cardim

    (Polytechnic Institute of Bragança)

  • Arnaldo Coelho

    (Faculty of Economics at University of Coimbra)

Abstract

The objective of this paper is to investigate the impact of exploration and exploitation capabilities on competitive advantage (hereafter CA) and performance, considering the mediating role of innovation capabilities (hereafter ICs) and the moderating role of organizational learning capability (hereafter OLC) on the proposed relationships. This investigation proposes a theoretical model tested using structural equation modelling (SEM), and a multi-group analysis is performed to understand the moderating role of organizational learning capability. A 90-item questionnaire exploring the relationships between dynamic capabilities (hereafter DCs) and innovation was developed, and a total of 387 valid questionnaires were collected from a sample of Portuguese’s small- and medium-sized enterprises (SMEs), a case of a transition economy. Therefore, this study contributes to the understanding of the direct and indirect impact of exploration and exploitation on CA variables, the mediating role of IC on CA and performance and the moderating effect of OLC in a transition economy.

Suggested Citation

  • Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.
    • Handle: RePEc:spr:jknowl:v:12:y:2021:i:2:d:10.1007_s13132-020-00655-z
    DOI: 10.1007/s13132-020-00655-z
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