Dynamic capabilities and organizational performance: The mediating role of innovation

Steven S. Zhou, Abby J. Zhou, Junzheng Feng, Shisong Jiang

Research output: Journal PublicationArticlepeer-review

98 Citations (Scopus)


How firms' dynamic capabilities lead to their competitive advantage and improved firm performance has been a core issue and full of debates. In this research, we theorize that dynamic capabilities, which could be defined by three distinct dimensions (sensing capability, integration capability, and reconfiguration capability), facilitate different types of innovation that in turn improve firm performance. Based on a sample of 204 Chinese firms, results from partial least squares structural equation modeling analyses generally support our arguments despite some nuanced differences existing among different dimensions of dynamic capabilities. This study contributes to dynamic capabilities literature by reducing the scarcity of empirical research and by uncovering the mechanisms through which dynamic capabilities influence firm performance.

Original languageEnglish
Pages (from-to)731-747
Number of pages17
JournalJournal of Management and Organization
Issue number5
Publication statusPublished - 1 Sept 2019
Externally publishedYes


  • dynamic capabilities
  • innovation
  • integration capability
  • reconfiguration capability
  • sensing capability

ASJC Scopus subject areas

  • Business and International Management
  • Organizational Behavior and Human Resource Management


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