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ISSN Number: 2009-2822. Frequency: 4 Issues per year (online only)
Article #1650 - The Mediating Role of Innovation Capabilities in the Relationship between Dynamic Managerial Capability and Performance of Export-manufacturing Firms
IRE Vol 19: Issue 2, 2021, Pages
Author(s): Md Imtiaz Mostafiz (Sheffield Hallam University, UK), Murali Sambasivan (Thiagarajar School of Management, India), See-Kwong Goh (Taylor’s University, Malaysia) & Mohammad Hassan Shakil (East Delta University, Bangladesh & Taylor’s University)
Abstract:
Entrepreneurial export-manufacturing firms marshal and ultimately succeed when they better avail and align various capabilities. Dynamic managerial capability (DMC) refers to the individual-level capabilities of managers and entrepreneurs to reconfigure a firm’s resources and competencies in order to ultimately enhance firm performance. A firm’s strategic capabilities, including innovation capabilities, are often assumed to play a mediating role. Drawing upon DMC and dynamic capability theory, we test this assumption by examining 336 apparel export-manufacturing firms in Bangladesh. We found clear evidence for mediation relationships between two DMC attributes — managerial social capital and managerial cognition — and firm performance, where process and product innovation capabilities play a mediating role. In contrast, no link with innovation capabilities was found for a third DMC attribute investigated in this study, i.e. managerial human capital.