Dynamics of organizational capabilities and firm performance in an emerging business landscape. The moderating role of environmental dynamism

Purpose The study aims to examine the effect of a firm’s organizational learning (ORL), dynamic capabilities (DYC) and absorptive capacity (OAC) on its competitive advantages (CAD) and firm performance (FRP), with a specific focus on how environmental dynamism (EVD) moderates these relationships. Design/methodology/approach A cross-sectional survey design was used in the research. Using a self-administered questionnaire, information was gathered from 360 owners and managers in Accra, Ghana, who worked in the automotive, pharmaceutical, plastics, rubber, technology, communication and other sectors. The data was analyzed using the partial least squares structural equation modeling (PLS-SEM) technique to test the hypothesized relationships, including mediation and moderation effects. Findings The research demonstrated that competitive advantage mediates the relationships between ORL and firm performance (FRP), as well as between dynamic capabilities (DYCs) and FRP. The competitive advantage-FRP and the competitive advantage-DYC relationships are adversely moderated by EVD. Originality/value The research gives fresh insights into how ORL, DYCs and absorptive ability collectively affect competitive advantage and firm performance, broadening the knowledge in today’s dynamic business world. Significantly, it underscores the strategic importance of building resilient learning and innovation systems in dynamic environments. The results give managers suggestions on exploiting absorptive ability for competitive advantage.