Utilizing Dynamic Capabilities to Enhance Firm Innovation Performance under uncertain crisis: Thailand’s manufacturing industry
Main Article Content
Abstract
To survive in this uncertain crisis, it is recognized that the innovative performance of a manufacturing firm can be enhanced by the challenging strategy of dynamic capabilities. The dynamic capabilities theory was employed, demonstrating that executives may deploy the 3-component dynamic capabilities (sensing capability, seizing capability, and reconfiguring capability) to enhance firm innovation performance. The study objective was to investigate both direct effects of 3-component dynamic capabilities and conditional effects of IT flexibility toward firm innovation performance. Utilizing Krejcie and Morgan’s (1970) formula, there were 402 target manufacturers with an equal cluster sampling. The direct effect of the 3 components of dynamic capabilities and the conditional effect of IT flexibility were separately analyzed by OLS Regression and PROCESS model 1. It was found that (1) each direct effect of the 3-component dynamic capability has a positive effect on firm innovation performance, and (2) each conditional effect of either high or low IT flexibility has a positive effect on the linkage between the 3-component dynamic capabilities and firm innovation performance. Highlighting that the reinforcement of high IT flexibility on 3-component dynamic capabilities could generate a superior positive effect on firm innovation performance than low IT flexibility.
Highlights
• Demonstrating that the association between the 3-component dynamic capabilities and high IT flexibility would enhance firm innovation performance under uncertain crisis for Thailand’s manufacturing industry.
• Utilizing PROCESS model 1 to explore the conditional effect of a dichotomous moderator.
• To reconfirm that the dynamic capabilities theory is still valid to enhance firm innovation performance.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright: CC BY-NC-ND 4.0
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