Path-Structural Modeling of Dynamic Capabilities and Environmental Dynamics Relationship

Find a way to cope with the changing environments and organizational survival has become a major challenge among management researchers in recent years. The dynamic capabilities view has gained particular importance. Reviews of the dynamic capabilities literatures reveal that survey effects of environmental dynamism on dynamic capabilities, is one of the research requirements. This paper examines the relationship between dynamic capabilities and environmental dynamics. So, a model of dynamic capabilities (including sensing capability, seizing capability and reconfiguration capability) and environmental dynamics (including technological and market dynamics) constructs was designed. The data were collected from the questionnaire. Questionnaires were completed by senior managers of production company in Tehran stock exchange. We used SmartPLS. Results showed the relationship between environmental dynamics and dynamic capabilities as higher-level construct in the model is significant. Also, technological dynamics have positive impact on sensing capability, seizing capability and reconfiguration capability. Market dynamics have positive impact on sensing capability and seizing capability too.