Corporate Dynamic Capabilities and Sustainable Performance: Moderating Effects of Organizational Culture And Structure

Abstract

Effective organizational structure and culture are vital in shaping corporate dynamic capabilities, enabling microfilms to adapt and thrive in dynamic environments. It is curious that the previous studies diverge in conceptualizing the condition strategy of organizational culture and structure on the relationship between corporate dynamic capabilities and sustainable performance. Thus, this study advances structurization and culturalization in the empirical domain of microfirms. The aim of this study is twofold; first to examine the direct effects of knowledge sharing and sensing capability on sustainable performance, and second, to describe the moderation effects of organizational culture and structure in the relationship between sensing capability and knowledge sharing in shaping sustainable performance. The study is grounded on 602 employees of the dairy industry in Tanzania to test the conceptual research model constructed under the lens of KBV. We used the conditional process analyses and tested the study’s hypotheses. The findings affirmed conditional direct effects that sensing capability and knowledge sharing have positive significant effects on sustainable performance at a specified level of organizational culture and structure. Moreover, moderation analysis confirmed that organizational culture and structure dampen the relationship between knowledge sharing and sensing capability on sustainable performance. This study shed new light on the necessity of structurization and culturalization among employees of microfirms in emerging economies such as Tanzania.