An innovation potential and organizational performance: an integrative role of company’s dynamic capabilities

Abstract The restaurant business plays a crucial role in the food economy and, like many industries, faces numerous challenges due to the rapid pace of change, driven by consumer trends and shifting demographics. In response to the pressure on businesses to adapt to these changing circumstances, new restaurant concepts, organizational structures and technologies have emerged in the hope of finding methods that are more agile during unpredictable times. The development of dynamic capabilities is a critical issue for both academics and practitioners, as it can enhance competitive advantages and improve organizational performance. The purpose of this paper is to examine the impact of dynamic capabilities on innovative potential and organizational performance. Through a literature review and the dynamic capability view, a theoretical model is proposed. This model was validated using the PLS-SEM technique, based on responses from 143 restaurants across eight of the largest Russian cities. The results indicate that dynamic capabilities related to the value proposition serve as a complete mediator in the relationship between a company's innovative potential and its performance in a highly volatile context. The proposed theoretical model is both unique and effective, demonstrating high explanatory power. This study enriches the existing literature on dynamic capabilities by addressing empirical research gaps and elucidating the mechanisms through which dynamic capabilities influence organizational performance.