The role of Dynamic Capability in Mediating the Effect of Environmental Dynamism and Managerial Capabilities, toward Firm Performance of Small Medium Enterprises Adrian Permana, Arsono Laksamana & Lena Ellitan

The role of Dynamic Capability in Mediating the Effect of Environmental Dynamism and Managerial Capabilities, toward Firm Performance of Small Medium Enterprises

Author (s)

Adrian Permana, Arsono Laksamana & Lena Ellitan

Abstract

Small Medium Enterprises (SMEs) hold business potentials that gain  a serious attention from the government. Some factors that affect the efficiency of SMEs include: internal and external factors. The success of SMEs depends on its abilities in managing its internal and external factors through environment factor analysis and the creation and execution of work strategy. Using PLS-SEM analysis, sample used for the study was 80 Small Medium Enterprises (SMEs) owners or managers in Surabaya, Indonesia. The findings of this study state that Managerial Capabilities has the most significant impact. Meanwhile, Environmental Dynamism does not have any impact towards Firm Performance, because SMEs are independent in managing the company, in terms of its capitalization, product or service development, and flexibility resulting from its low operating cost of workers, and place of business.

Keywords: Firm Performance, Dynamic Capabilities, Environmental Dynamism,   Managerial Capabilities, Small Medium Enterprises.

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Title: The role of Dynamic Capability in Mediating the Effect of Environmental Dynamism and Managerial Capabilities, toward Firm Performance of Small Medium Enterprises
Author:

Adrian Permana, Arsono Laksamana & Lena Ellitan

Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.3903246
Media: Online
Volume: 4
Issue: 7
Acceptance Date: 21/06/2020
Date of Publication: 22/06/2020
PDF URL: https://ijsab.com/wp-content/uploads/565.pdf
Free download: Available
Page: 1-25
First Page: 1
Last Page: 25
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Adrian Permana, Arsono Laksamana & Lena Ellitan (2020). The role of Dynamic Capability in Mediating the Effect of Environmental Dynamism and Managerial Capabilities, toward Firm Performance of Small Medium Enterprises. International Journal of Science and Business, 4(7), 1-25. doi: https://doi.org/10.5281/zenodo.3903246

Retrieved from https://ijsab.com/wp-content/uploads/565.pdf

 

About Author (s)

Adrian Permana, Doctorate Candidate, Graduate School, Widya Mandala Catholic University Surabaya, Indonesia.

Arsono Laksmana, Professor in Graduate School, Widya Mandala Catholic University Surabaya, Indonesia.

Lena Ellitan, (Corresponding Author),  Management Study Program,  Faculty of Business Widya Mandala Catholic University Surabaya, Indonesia.

 

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DOI: https://doi.org/10.5281/zenodo.3903246

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