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The effect of dynamic capabilities on operational excellence and the moderating effect of environmental dynamism on the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka were investigated while developing new psychometric scales to assess operational excellence and dynamic capacities constructs.

We followed the exploratory sequential research design with a mixed-method research approach, aligning with the pragmatic research philosophy. Thus, both qualitative and quantitative research methods were followed.

Dynamic capabilities positively affect operational excellence, and environmental dynamism moderates the relationship between operational excellence and dynamic capabilities in the apparel industry in Sri Lanka such that when a higher environmental dynamism exists, a weaker positive relationship exists between dynamic capabilities and operational excellence. The two main dimensions of the operational excellence construct are continuous improvement of sustainable operational performance and sustainable competitive advantages. It empirically confirmed that sensing, seizing and reconfiguring capabilities are the three main dimensions of the dynamic capabilities construct.

This study was limited to the apparel industry in Sri Lanka. This research phenomenon should be explored in other industrial sectors worldwide to generalize the findings. The practitioners in the apparel sector may improve the organizational dynamic capabilities to achieve operational excellence and keep a strong positive relationship between dynamic capabilities and operational excellence in a highly dynamic environment if they address out-of-family situations with out-of-the-box thinking.

We generated two new empirical findings: (1) dynamic capabilities positively affect operational excellence, and (2) environmental dynamism moderates the relationship between dynamic capabilities and operational excellence. Also, we introduced validated new scales for assessing operational excellence and dynamic capabilities.

Drawing on the resource-based view (RBV) and the dynamic capabilities view (DCV), this study investigates how circular economy entrepreneurship (CEE) drives technical capabilities (TC) in achieving greater circular economy (CE) performance for small and medium-sized enterprises (SMEs) under the moderating influence of environmental dynamism. SMEs, facing resource constraints, need to promote CE due to growing stakeholder pressures. Thus, the authors recommend that SMEs via CEE can identify CE opportunities and then develop specific TC to exploit opportunities in the business environment to achieve CE performance. However, in doing so SMEs should pay attention to the varying degrees of environmental dynamism.

The RBV and DCV are used as a theoretical lens to investigate the direct and moderation effects between CEE, TC, CE performance and environmental dynamism tested via partial least square structural equation modeling (PLS-SEM) using survey data from 152 managers of SMEs in Nepal.

The study results show that CEE directly has a positive and significant effect on the development of TC and CE performance. Similarly, the development of TC drives SMEs to achieve improved CE performance, as evidenced by the positive and significant effect. Interestingly, the results suggest that environmental dynamism significantly improves the relationship between TC and CE performance, but this effect is strongest at high levels of environmental dynamism rather than at low and moderate levels. Additionally, the findings reveal that while environmental dynamism has a positive effect on the relationship between CEE and TC, this effect is insignificant.

Based on the arguments of the RBV and the DCV, this study explores how environmental dynamism can reduce and amplify SMEs' ability to use CEE to develop TC and improve CEP. First, this study integrates the circular economy and entrepreneurship domains to suggest essential CEP and TC benefits for SMEs via CEE. Second, this study suggests that at low levels of environmental dynamism, CEE has less effect on the SMEs’ development of TC, compared to high levels. Third, this study is conducted in the novel institutional context of Nepal, providing insights regarding how SMEs' CE entrepreneurship impacts TC and CEP.

The aim of this paper is to investigate the effects of environmental dynamism on different EO dimensions in family firms. The authors also examine the moderating role of national culture (uncertainty avoidance and in-group collectivism) and the level of family control and influence in fostering/hindering this relationship.

A survey was conducted among 1,143 family firms from twenty-eight countries. The authors developed and tested hypotheses through a fixed-effects regression analysis.

The findings suggest that environmental dynamism has a positive effect on all three EO dimensions. Analysis reveals a positive moderating role of family control and influence and negative moderating roles of in-group collectivism and uncertainty avoidance.

The findings imply that family firm managers should carefully interpret the influence of their national culture on family firm behavior. More specifically, family firms in dynamic environments should consider the importance of the national culture in which they are embedded. Those operating in high uncertainty avoidant and highly collectivist cultures should take proactive steps to cultivate a corporate entrepreneurial culture. On the other hand, the family should not undermine the effect of its control and influence. In dynamic environments, family control and influence may be a competitive advantage in reinforcing entrepreneurial orientation.

The study contributes to the literature on EO in family firms by expanding the previous research on the antecedents of EO and examining moderation effects of culture and family control and influence across a broad multi-country sample. In contrast with the common findings regarding the effect of family logic on EO, the study shows the strengthening role of family control and influence in the relationship between environmental dynamism and EO. The authors show that culture as an informal institution may also play a critical role in hindering/strengthening the relationship between environmental dynamism and EO.

This paper contributes to studies on the relationship between dynamic capabilities (DCs) and performance by showing how domain-specific DCs – international dynamic marketing capabilities (IDMCs) – affect the international performance of exporting firms in the context of extreme environmental dynamism – during the COVID-19 pandemic.

The authors focus on a sample of 277 exporting manufacturers from the post-transition economy of Poland. The authors use hierarchical multiple regression analysis to test this study's hypotheses.

This study's findings show that deployment of IDMCs by export manufacturers in the context of environmental jolts contributes to better performance, and this relationship is mediated by adaptation to foreign markets and product development capability. Additionally, this study's results reveal that the significant and positive indirect effect of IDMCs on international performance (through mediators) is, however, weakened under conditions of extreme environmental dynamism.

The limitations pertain to the cross-sectional nature of this study and the research sample, characterised by the dominance of export manufacturers of final products, the dominance of manufacturers operating in the business-to-business sector, or in the business-to-business and business-to-customer sectors simultaneously.

The study provides suggestions to managers on how to build resilience in international markets during turbulent times. These activities involve investments in IDMCs that support activities centred around product development and adaptation to foreign markets.

The novel construct of IDMCs is introduced and operationalized. The study empirically tests the direct and indirect relationship between IDMCs and performance contingent upon extreme environmental dynamism. The results demonstrate the boundary conditions for the effectiveness of these domain-specific DCs in such a research setting.

Despite the increasing numbers of research studies about social media business, the concept of social media agility is still an emerging topic that has been understudied. Therefore, the purpose of this study was to investigate the effect of social media agility on business performance by using a sample of small- and medium-sized enterprises (SMEs) in Thailand. Moreover, this study explored whether the effect of social media agility on business performance could be moderated by the characteristic of firm in terms of size, as well as the characteristic of market environment in terms of environmental dynamism.

The sample of 337 firms was obtained from the business directory using the simple random sampling method, and the model assessment was performed by using partial least squares structural equation modeling.

The data analysis indicated that social media agility positively affected the business performance of SMEs. Moreover, the moderating effect analysis showed that smaller firms tended to gain higher business performance from social media agility than larger firms. In addition, social media agility positively affected business performance to a greater extent when firms operated under low environmental dynamism than when they operated under high environmental dynamism.

Because SMEs are the key driving of economic development and economic growth, the recommendations from this study could be helpful for the government sector responsible for the competency development of SMEs to offer a development program that might enable entrepreneurial firms to develop social media marketing competencies and enhance their potential to be successful in the digital transformation.

The authors found new evidence showing that the degree to which social media agility affected business performance depended significantly on the firm characteristics in terms of firm size, as well as the environmental factor in terms of environmental dynamism. These findings provide valuable contributions to the existing literature that still lacks evidence about the moderating conditions that could increase or reduce the benefits that firms obtain from social media agility.

Although the adoption of lean inventory management for performance improvement has been widely recognized, sticky inventory management is still a stopgap measure for new small and medium enterprises (SMEs) against survival risks. The purpose of this paper is to demonstrate the nonlinear relationship between new SMEs inventory stickiness and venture survival by focusing on the moderating effects of environmental dynamism and financial constraints.

Classical moderating model is employed to investigate the effects of environmental dynamism and financial constraints on the relationship between inventory stickiness and venture survival. This study uses the accelerated failure time model for survival analysis and tests the relationships based on a large set of new manufacturing SMEs in China over the period from 1999 to 2007.

The main finding is that inventory stickiness has an inverted U-shaped impact on the likelihood of survival. However, the inflection point of this inverted U-shaped relationship lies at the end of the sample. Further moderation analysis indicates that environmental dynamism positively moderates the inverted U-shaped relationship between inventory stickiness and venture survival, while financial constraints negatively moderate this relationship.

Most new SMEs have great potential to increase the likelihood of survival by improving inventory stickiness before achieving effective lean inventory management. Sticky inventory management can help new SMEs achieve better survival in a dynamic environment. However, new SMEs that are financially constrained should prudently implement sticky inventory management.

This paper contributes to the existing understanding about the likelihood of SMEs survival by addressing the role of sticky inventory management. It may be the first study to empirically demonstrate the moderating effect of environmental dynamism and financial constraints on the inverted U-shaped relationship between inventory stickiness and venture survival.

Dynamic capabilities are regarded as the bedrock of firms that survive in a dynamic environment. Notwithstanding this perspective, little research has been implemented in understanding dynamic capabilities of family firms. The purpose of this paper is to investigate the relationship between environmental dynamism and dynamic capabilities of family businesses, and the moderating effect of trust on this relationship.

A quantitative survey was executed with the sampling frame outlined based on the Hemscott Company Guru database. In total, 137 useful responses were employed in this study.

The results suggest that environmental dynamism is an antecedent of dynamic capabilities. Furthermore, findings show the presence of trust moderates the environmental dynamism-dynamic capabilities nexus.

The cross-sectional design of the study determines that it can only proffer a snapshot of the scenario. In addition, the exclusion of non-incorporated firms in the sample because of the nature of the Hemscott database constrains the generalisability of the study. Future studies in a similar vein may be implemented through national/local development agencies to overcome this barrier.

The unique intertwined family and business system embedded in family firms has led to the assumption that trust will influence the environmental dynamism-dynamic capabilities nexus. The current study confirms this assumption and offers a perspective that helps appreciate the environment-business relationship in family businesses.

With the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance.

A survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3.

The study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant.

It is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment.

Prior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.

This study aims to explore how transformational leadership influences employees' creativity by considering the role of the environment and psychology. The study aims to provide insights into the impact of transformational leadership on team innovation climate, team reflexivity, psychological capital and employee creativity while also examining the moderating effect of environmental dynamism on these relationships.

This study employed a multi-source, multi-wave approach, utilizing data from 618 participants in 118 teams. It constructed a multilevel structural equation model and estimated the confidence intervals of the mediated and moderated effects using the Markov chain Monte Carlo method.

The results of the multilevel analyses indicated that transformational leadership positively influenced the team innovation climate, team reflexivity, psychological capital and employee creativity. Moreover, the study found that environmental dynamism positively moderates the relationships among transformational leadership, team reflexivity, psychological capital and employee creativity.

Drawing on social cognitive theory and the motivated information processing in groups model, this study offers new insights into the interplay between transformational leadership and creativity. It examines the moderating role of cross-level process linkages and environmental dynamism, thereby validating and extending relevant theories.

To adapt to the rapidly changing market environment, firms must constantly adjust and change their knowledge base to develop new technologies. The purpose of this paper is to analyze the improvement path of firms’ breakthrough innovation from the perspective of knowledge recombination in the context of dynamic change in the knowledge base. By analyzing the influencing mechanism of environmental dynamism on the relationship between the two, this paper provides a theoretical foundation for managers to make knowledge recombination decisions under a dynamic external environment while further enriching the firm’s innovation achievements.

Using data from 220 manufacturing firms listed on the Shanghai and Shenzhen A-share stock from 2010 to 2018, an extensive panel data set was constructed to investigate the effect of knowledge recombination, which was divided into recombination creation and recombination reuse, on firms’ breakthrough innovation. In addition, the authors differentiated environmental dynamism as market dynamism and technological dynamism and then examined its moderating role in the above relationships.

The research results show that various recombination behaviors of knowledge elements have a differentiated effect on firms’ breakthrough innovation presented as follows: Knowledge recombination creation is significantly positively correlated with firms’ breakthrough innovation, while knowledge recombination reuse is significantly negatively correlated with firms’ breakthrough innovation. In addition, environmental dynamism has a considerable moderating effect between knowledge recombination and firms’ breakthrough innovation further, emphasizing that the moderating effect on different types of knowledge recombination behaviors is significantly distinct.

First, given that this study refers to several Chinese noted databases to collect second-hand data for empirical analysis, future research could use first-hand data by collecting questionnaire survey and interview to provide a more practical and detailed research conclusion. Second, the authors focused on the contextual variable to explore the moderating role of environmental dynamism on the relationship between knowledge recombination and breakthrough innovation. Nevertheless, the indirect effects of other internal factors were not discussed. The authors advocate future studies to involve other moderators from employee social and phycological perspectives, such as trust in colleagues in the proposed theoretical models in this study.

This study is conducive for managers to attach great attention to knowledge management practices in the firm and to understand the critical role of knowledge recombination in affecting innovation performance under dynamic environmental changes. Moreover, this study provides practical guidance and serves as a reference for firms to strengthen their knowledge recombination ability as full utilization of existing knowledge elements and exploration of new knowledge values.

Primarily, from the perspective of dynamic changes in the knowledge base, this paper explores how the knowledge recombination behaviors affect firms’ breakthrough innovation, thereby enriching and extending the relationship theory between knowledge recombination capabilities and breakthrough innovation, while new and valuable ideas are provided in the study of issues related to the firms’ breakthrough innovation; Moreover, this study analyzes the moderating effects of diverse types of environmental dynamism on the relationship between knowledge recombination and firms’ breakthrough innovation from a multi-dimensional perspective proposing that the moderating effects of environmental dynamism on different knowledge recombination behaviors are distinct.