When should organizational change be implemented? The moderating effect of environmental dynamism between dynamic capabilities and new venture performance |
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| Authors: | Hao Jiao Ilan Alon Chun Kwong Koo Yu Cui |
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| Institution: | 1. School of Economics and Business Administration, Beijing Normal University, Beijing China;2. Crummer Graduate School of Business, Rollins College, Winter Park, Florida, United States;3. Global Management Education Institute, Shanghai University, Shanghai, China;4. School of Economics and Management, Beijing Information Science and Technology University, Beijing, China |
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| 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. |
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