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Dynamic Capabilities and Performance of the Firm: The Mediating Role of VRIN Resources

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Inclusive Businesses in Developing Economies

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Abstract

This study empirically examines the direct as well as indirect effect of dynamic capabilities on firm performance. Structural equation modeling has been used to analyze the survey data from 218 Indian companies to test the objective of the study. The findings show that the dynamic capability positively influences the firm performance, however, the indirect effect of the dynamic capability on performance through the firm’s VRIN resources is higher than the direct one. This suggests that the effectiveness of the dynamic capability on firm performance increases through modification and reconfiguration of VRIN resources. The study contributes to the extant literature by examining the resource-based theory with the dynamic capability view to provide evidence on the dynamic capabilities’ indirect influence on firm performance.

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Authors and Affiliations

  1. Operations Management & Quantitative Techniques, International Management Institute, Bhubaneswar, India

    Ritu Singh

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  1. Ritu Singh
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Correspondence to Ritu Singh .

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Editors and Affiliations

  1. Tecnologico de Monterrey, EGADE Business School, Mexico, Mexico

    Rajagopal

  2. International Management Institute, Bhubaneswar, Odisha, India

    Ramesh Behl

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Singh, R. (2022). Dynamic Capabilities and Performance of the Firm: The Mediating Role of VRIN Resources. In: Rajagopal, Behl, R. (eds) Inclusive Businesses in Developing Economies. Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-12217-0_19

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  • DOI: https://doi.org/10.1007/978-3-031-12217-0_19

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-031-12216-3

  • Online ISBN: 978-3-031-12217-0

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