Dynamic Capabilities and Strategic Adaptation in Emerging Business Environments: Evidence from Indian Firms

Abstract: The emerging markets are typified by an increased environmental uncertainty because of regulatory uncertainty, technological uncertainty, institutional uncertainty and increased international competition. Under these conditions, the companies have to create high-order abilities that would facilitate constant renewal and strategic responsiveness. Based on the Dynamic Capabilities (DC) View, this paper conceptualizes dynamic capabilities as sensing, seizing, and transforming processes that help organizations to adapt strategically and achieve lasting performance. Though wide international literature exists, there is paucity of large-scale empirical data about Indian firms. The research question is to test the effect of DC on strategic adaptation and the performance of firms in the Indian business environment. The proxy indicators of DC are calculated using secondary panel data and cross-sectional data on manufacturing and service companies between 2016 and 2024 based on the financial and strategic reporting of publicly traded companies. The content coding, exploratory factor analysis and the panel regression are applied to test the hypothesized relationships. The results indicate that there is a strong confident relationship between DC, strategic adaptation and firm performance with the performance outcomes mediated partly by the adaptation concept. The research is valuable in that it suggests a context-specific framework of strategic adaptation to the new market conditions, providing theoretical expansion and practical recommendations to the policymakers and the management of India. Keywords: DC; Strategic change; Environmental uncertainty; New markets; Performance of firms; Indian firms; Organizational resilience. Title: Dynamic Capabilities and Strategic Adaptation in Emerging Business Environments: Evidence from Indian Firms Author: Satyajit Yashwantsinh Jhala International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 14, Issue 1, April 2026 - September 2026 Page No: 58-66 Research Publish Journals Website: www.researchpublish.com Published Date: 10-April-2026 DOI: https://doi.org/10.5281/zenodo.19496333 Paper Download Link (Source) https://www.researchpublish.com/papers/dynamic-capabilities-and-strategic-adaptation-in-emerging-business-environments-evidence-from-indian-firms