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Effect of relational capability on dynamic capability: exploring the role of competitive intensity and environmental uncertainty

Published online by Cambridge University Press:  16 May 2022

Ritu Singh Open the ORCID record for Ritu Singh [Opens in a new window] ,
Parikshit Charan  and
Manojit Chattopadhyay
Ritu Singh*
Affiliation:
Operations Management & Quantitative Techniques, International Management Institute Bhubaneswar, Gothapatna, Malipada, Chandaka, Bhubaneswar, Odisha 751003, India
Parikshit Charan
Affiliation:
Operations & Quantitative Methods, Indian Institute of Management Raipur, Atal Nagar, Kurru, Raipur, Chhattisgarh 493661, India
Manojit Chattopadhyay
Affiliation:
IT and Systems, Indian Institute of Management Raipur, Atal Nagar, Kurru, Raipur, Chhattisgarh 493661, India
*
*Corresponding to author: E-mail: ritu.fpm2015@iimraipur.ac.in
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Abstract

This study empirically examines the role of market dynamism and a firm's relational capability in the development of dynamic capability. A moderated hierarchical regression method has been used on the survey data of 218 Indian firms to test the objectives of the study. The findings suggest that relational capability (namely, customer linking capability and strategic partnering capability) is an important driver of dynamic capability. However, the effectiveness of relational capability is dependent on the market dynamism; particularly, when competition intensifies, the impact of customer linking capability declines, whereas the impact of strategic partnering capability on dynamic capability becomes stronger. Furthermore, the finding suggests that even though environmental uncertainty represents an important element of market dynamism, it is a driver, rather than a moderator, of dynamic capability. The study contributes to the extant literature by explicitly specifying the relational capability as a specific competence to develop dynamic capability under different market conditions.

Keywords

Competitive intensitydynamic capabilityemerging economiesenvironmental uncertaintyrelational capability
Type
Research Article
Information
Journal of Management & Organization , Volume 28 , Special Issue 3: Dynamic Capabilities: New Ideas , May 2022 , pp. 659 - 680
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2022

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