Surviving the Dynamic Business Landscape: The Influence of Dynamic Capabilities on Organizational Resilience

Authors

  • Jeffrey Ambat Amoguis Adventist University of the Philippines

Keywords:

dynamic capabilities, organizational resilience, micro and small enterprises

Abstract

In a rapidly evolving business landscape marked by the COVID-19 pandemic, global tensions, technological disruptions, and environmental consciousness, organizational adaptability is essential. This research examines the interplay between Dynamic Capabilities (DC) and organizational resilience (OR) in Micro and Small Enterprises (MSEs) in Cavite, Philippines. Utilizing theories of organizational resilience and dynamic capabilities, the study highlights adaptability, opportunity recognition, risk mitigation, informed decision-making, collaboration, and resource orchestration as key to organizational stability. Jack Welch's insight emphasizes the need for internal transformation to match external dynamism to avoid organizational decline. The study draws on Teece's framework of dynamic capabilities—sensing, seizing, and transforming capacities—positioning MSEs as vulnerable yet capable of leveraging these capabilities to enhance resilience. With 66 MSEs, the research employs a correlational design and a questionnaire to examine business attributes, dynamic capabilities, and organizational resilience. Statistical analyses, including mean, standard deviation, Pearson correlation, and one-way ANOVA, reveal the relationships between these variables. Findings offer practical implications for business leaders, policymakers, investors, and stakeholders. Business leaders can use insights into dynamic capabilities for informed decision-making and navigating uncertainties. Policymakers can develop targeted initiatives to promote business resilience based on empirical evidence. Investors and stakeholders gain a deeper understanding of factors contributing to MSE resilience, aiding investment decisions and risk assessments. The study acknowledges the resilience of Cavite’s MSEs and recommends enhancing dynamic capabilities and organizational resilience, especially in capital and strategic areas. Expanding research to regional and national levels can improve the generalization of findings, providing valuable insights for navigating the ever-evolving business landscape.

Article Metrics

Downloads

Download data is not yet available.

References

Abbas, J., Raza, S., Nurunnabi, M., Minai, M. S., & Bano, S. (2019). The impact of entrepreneurial business networks on firms’ performance through a mediating role of dynamic capabilities. Sustainability, 11(11), 3006.

Akpan, E. E., Johnny, E., & Sylva, W. (2022). Dynamic capabilities and organizational resilience of manufacturing firms in Nigeria. Vision, 26(1), 48-64.

Baffes, J. and Nagle, P. (2022, May 5). Commodity prices surge due to the war in Ukraine. https://blogs.worldbank.org/developmenttalk/commodity-prices-surge-due-war-ukraine

Bhandari, P. (2021, July 7). Correlational research: When and how to use. https://www.scribbr.com/methodology/correlational-research/

Chen, R., Xie, Y., & Liu, Y. (2021). Defining, conceptualizing, and measuring organizational resilience: A multiple case study. Sustainability, 13(5), 2517.

Chih, Y. Y., Hsiao, C. Y. L., Zolghadr, A., & Naderpajouh, N. (2022). Resilience of organizations in the construction industry in the face of COVID-19 disturbances: Dynamic capabilities perspective. Journal of management in engineering, 38(2), 04022002.

Department of Trade and Industry. (2021, October 26). 2021 MSME Statistics. https://www.dti.gov.ph/resources/msme-statistics/

Duchek, S. (2020). Organizational resilience: a capability-based conceptualization. Business research, 13(1), 215-246.

Eikelenboom, M., & de Jong, G. (2019). The impact of dynamic capabilities on the sustainability performance of SMEs. Journal of Cleaner Production, 235, 1360-1370.

Ellyatt, H. (2022, April 21). From soaring food prices to social unrest, the fallout from the Russia-Ukraine war could be immense. https://www.cnbc.com/2022/04/21/from-food-to-inflation-the-russia-ukraine-war-has-a-global-impact.html

The jamovi project (2022). jamovi. (Version 2.3) [Computer Software]. Retrieved from https://www.jamovi.org.

Jiang, Y., Ritchie, B. W., & Verreynne, M. L. (2019). Building tourism organizational resilience to crises and disasters: A dynamic capabilities view. International Journal of Tourism Research, 21(6), 882-900.

Kammer, A., Azour, J., Selassie, A. A., Goldfajn, I., & Rhee, C. Y. (2022, March 15). How war in Ukraine is reverberating across world's regions. https://www.imf.org/en/Blogs/Articles/2022/03/15/blog-how-war-in-ukraine-is-reverberating-across-worlds-regions-031522

Khan, T. Z. A., Farooq, W., & Rasheed, H. (2019). Organizational resilience: a dynamic capability of complex systems. Journal of Management and Research, 6(1), 1-26.

Kump, B., Engelmann, A., Kessler, A., & Schweiger, C. (2019). Toward a dynamic capabilities scale: measuring organizational sensing, seizing, and transforming capacities. Industrial and Corporate Change, 28(5), 1149-1172.

Kurtz, D. J., & Varvakis, G. (2016). Dynamic capabilities and organizational resilience in turbulent environments. Competitive Strategies for Small and Medium Enterprises: Increasing Crisis Resilience, Agility and Innovation in Turbulent Times, 19-37.

Marr, B. (2022, October 3). The 5 biggest business trends in 2023 everyone must get ready for now. https://www.forbes.com/sites/bernardmarr/2022/10/03/the-5-biggest-business-trends-for-2023/?sh=3095a3684217

Martinelli, E., Tagliazucchi, G., & Marchi, G. (2018). The resilient retail entrepreneur: dynamic capabilities for facing natural disasters. International Journal of Entrepreneurial Behavior & Research, 24(7), 1222-1243.

Miller, D. (2019). The resource-based view of the firm. In Oxford Research Encyclopedia of Business and Management.

Nguyen, B. & Canh, N. P. (2020, June 11). Formal and informal financing decisions of small businesses. https://link.springer.com/article/10.1007/s11187-020-00361-9

Schoemaker, P. J., Heaton, S., & Teece, D. (2018). Innovation, dynamic capabilities, and leadership. California management review, 61(1), 15-42.

Stemmler, H. (2022). The effects of COVID-19 on businesses: Key versus non-key firms No. 77. https://www.ilo.org/static/english/intserv/working-papers/wp077/index.html. (Accessed: 19 September 2023)

Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic management journal, 28(13), 1319-1350.

Waltower, S. (2023, February 2021). Family and friends provide a key lifeline for entrepreneurs. https://www.businessnewsdaily.com/9617-friends-family-business-support.html

Watson, G. H. (2001, November). Cycles of learning: observations of Jack Welch. In Six Sigma Forum Magazine 1(1), 13-17

Wiseman, P. and Mchugh, D. (2023, February 15). War in Ukraine at 1 year: Pain, resilience in global economy. https://apnews.com/article/russia-ukraine-war-economic-impact-ef6e4c4443743ccbf7740892fb0b4f3b

Downloads

Published

2024-11-06

How to Cite

Amoguis, J. A. (2024). Surviving the Dynamic Business Landscape: The Influence of Dynamic Capabilities on Organizational Resilience. 11th International Scholars Conference, 11(3), 681-698. Retrieved from https://jurnal.unai.edu/index.php/isc/article/view/3401