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This study aims to investigate the mechanism that transforms middle manager capabilities (MMCs) into organisational performance (OP). This study proposes that organisational capacity for change (OCC) might mediate the relationship between MMCs and OP.

The proposed hypotheses were tested using data derived from a survey distributed to 89 heads of department of 34 subjects from the 11 top universities in Indonesia.

The findings indicate that MMCs positively influence OCC and OP and that OCC positively influences the OP. Furthermore, the authors found that OCC mediates the positive effect of MMCs on OP.

The authors empirically investigated the hypothesis that MMCs, in the context of higher education, play a crucial role in determining OCC and OP. Furthermore, the capacity of organisations to adapt to the changing environment mediates the capabilities of the middle managers in relation to OP. In addition, the authors empirically investigated OCC in three dimensions (learning, process and context) that were previously only proposed and discussed conceptually.

The aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused on how leadership style impacts on organisational performance, the authors have investigated how the dynamic managerial capabilities of middle managers and their organisational capacity for change as well as their attitude towards the change are linked to organisational performance.

The dataset was gathered during the field research carried out in a large public Indonesian government institution. In total, 313 managers and their direct followers participated in this study. The authors have employed structural equation modelling to test the hypotheses.

The results of this study demonstrate the role of the dynamic capabilities of the middle managers associated with organisational performance. The results show that dynamic managerial capabilities and organisational performance are mediated by the organisational capacity for change.

Middle managers should equip and develop their capabilities in order to embrace change in the organisation through the communication between the different staff levels, uniting the vision and mission with the organisational members. Further, the organisation should empower the role of the middle managers by increasing their authority and participation in the policy-making that is part of the change process. In addition, the workplace could implement interventions to optimise the dynamic managerial capabilities held by the middle manager and employees through assessments and mentoring. Finally, particular training programmes could be implemented to boost the employees' skills and flexibility, thereby keeping them agile in the context of the changes in the work environment.

The role of the dynamic managerial capabilities of the middle manager is a prominent factor when facilitating a high level of organisational performance in a public organisation. However, the role of dynamic managerial capabilities does not have a direct effect on organisational performance if the organisation does not have the capacity to change, particularly in the Indonesian context.