When should organizational change be implemented? the moderating effect of environmental dynamism between dynamic capabilities and new venture performance

Hao Jiao, Ilan Alon, Chun Kwong Koo, Yu Cui

Research output: Contribution to journalArticlepeer-review

95 Scopus citations

Abstract

The purpose of this study is to explore the moderating effect of environmental dynamism on the relationship between dynamic capabilities and new venture performance using the rapidly changing environment in China as a case. Using a sample of 115 firm observations, we applied the partial least squares structural equation modeling approach to model these relationships and found that opportunity-sensing capability and reconfiguration capability have significant impacts on new venture performance. Additionally, each of these capabilities has a stronger impact on new venture performance at higher levels of environmental dynamism. We conclude that dynamic capabilities are more effective in implementing organizational change at high degrees of environmental dynamism.

Original languageEnglish
Pages (from-to)188-205
Number of pages18
JournalJournal of Engineering and Technology Management - JET-M
Volume30
Issue number2
DOIs
StatePublished - 2013
Externally publishedYes

Keywords

  • China
  • Dynamic capabilities
  • Environmental dynamism
  • New venture performance
  • Organizational change

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