Achieving sustainable performance through dynamic capabilities in disruptive manufacturing environments: Does technology innovation matter?

Purpose We analysed whether dynamic capabilities influence sustainable performance metrics through technology innovation in Ghana's manufacturing industry. Design/methodology/approach This quantitative-based research adopted structural equation modelling to analyse the survey data obtained from 385 manufacturers in Ghana, a developing economy. Findings The research found that building dynamic capabilities, including coordinating, integrating, learning and sensing capabilities, is central to achieving sustainable performance (economic, environmental and social). Similarly, technology innovation positively affects firms' sustainable performance and partially mediates the relationship between dynamic capabilities and sustainable performance. Research limitations/implications Our empirical model is limited to Ghana's manufacturing industry, dynamic capability theory, a quantitative approach and a cross-sectional design. Nevertheless, the study's outcomes affirm the relevance of dynamic capabilities (sensing, integrating, coordinating and learning) and technology innovation in overcoming emerging disruptions in manufacturing supply chains. We provide a valuable framework that encourages owner-managers to develop dynamic capabilities and become technologically innovative. Practical implications We encourage firms to prioritise substantial investments in building dynamic capabilities and technology innovation to meet their sustainable performance objectives, especially in today's highly disruptive and technologically inclined manufacturing environment. By obtaining insights from our model, managers can develop robust dynamic capabilities and foster technology innovation to drive their firms' sustainable performance. Social implications Firstly, Ghanaian firms' investments in dynamic capabilities (sensing, integrating, learning and coordinating) to withstand emerging disruptions and sustainability problems will drive demand for employee skill development and improve environmental safety for local communities. Secondly, Ghanaian firms' ability to develop dynamic capabilities will enhance their robustness during economic or market shocks, leading to higher job protection and strengthening the local economy. Originality/value Our research contributes to the growing debate on how dynamic capabilities and technology innovation can be considered strategic resources for achieving sustainable performance. To the best of the authors’ knowledge, it is the first to establish the mediating effect of technology innovation between dynamic capabilities and sustainable performance metrics in a developing economy's manufacturing environment, specifically Ghana.