Original Research

Exploring the necessity of corporate dynamic capability and sustainable performance

Li Mingxing, Ma Zhiqiang, Bailin Ge, Song Xinping, Mohammad Heydari, Maulid H. Bwabo
South African Journal of Economic and Management Sciences | Vol 28, No 1 | a5830 | DOI: https://doi.org/10.4102/sajems.v28i1.5830 | © 2025 Li Mingxing, Ma Zhiqiang, Bailin Ge, Song Xinping, Mohammad Heydari, Maulid H. Bwabo | This work is licensed under CC Attribution 4.0
Submitted: 23 July 2024 | Published: 28 January 2025

About the author(s)

Li Mingxing, Department of Marketing, School of Management, Jiangsu University, Zhenjiang, China
Ma Zhiqiang, Department of Marketing, School of Management, Jiangsu University, Zhenjiang, China
Bailin Ge, Department of Marketing, School of Management, Jiangsu University, Zhenjiang, China
Song Xinping, Department of Marketing, School of Management, Jiangsu University, Zhenjiang, China
Mohammad Heydari, School of Applied Business, Unitec Institute of Technology, Auckland, New Zealand
Maulid H. Bwabo, Department of Marketing, School of Management, Jiangsu University, Zhenjiang, China Department of Marketing and Entrepreneurship, Faculty of Business and Information Sciences, Moshi Cooperative University, Kilimanjaro, Tanzania, United Republic of

Abstract

Background: Many studies navigated corporate dynamic capability’s direct and indirect effects on sustainable performance. However, there is an empirical literature conundrum regarding the sufficient and necessary condition of corporate dynamic capability that can enhance the sustainable performance of microfirms.

Aim: The main goal of this study is to explore the necessary and sufficient conditions for corporate dynamic capabilities that support sustainable performance and to determine if agility mediates the relationships between knowledge sharing, managerial cognitive capabilities, sensing capabilities, and sustainable performance.

Setting: This study surveyed 440 Tanzanian dairy microfirms between July 2021 and January 2022.

Method: Partial least squares-path modeling (PLS-PM) and necessary conditions analysis (NCA) were applied from the data collected from 602 managers and employees of microfirms in Tanzania.

Results: The study confirmed that a higher degree of agility, and sensing capability among employees is necessary and sufficient for achieving sustainable performance of microfirms. Agility possibly confounds the relationships between sensing capability, knowledge sharing and managerial cognitive capability on sustainable performance.

Conclusion: Knowledge sharing, agility and sensing capability are crucial for sustainable performance, while other dynamic capability factors are not critically sufficient and necessary for growth.

Contribution: The study offers valuable insights by identifying critical levels of agility, knowledge sharing, managerial cognitive capability, and sensing capability sufficient for sustainable performance in dairy microfirms. It also provides empirical evidence of agility’s complementary role in mediating the effects of knowledge sharing, sensing capability, and managerial cognitive capability on sustainable performance.


Keywords

corporate dynamic capability; sustainable performance; microfirms; Tanzania; necessary conditions analysis

JEL Codes

L16: Industrial Organization and Macroeconomics: Industrial Structure and Structural Change • Industrial Price Indices; L22: Firm Organization and Market Structure; L25: Firm Performance: Size, Diversification, and Scope

Sustainable Development Goal

Goal 9: Industry, innovation and infrastructure

Metrics

Total abstract views: 963
Total article views: 821


Crossref Citations

No related citations found.