Dynamic capabilities and enterprise growth: the mediating effect of networking

Abstract

PurposeEnterprise growth drives competitiveness, innovations, employment creation, income generation and social inclusion in societies. The purpose of this paper is to examine the mediating effect of networking on the relationship between dynamic capabilities and enterprise growth of financial cooperatives.Design/methodology/approachThis is a cross-sectional survey and quantitative study of 269 financial cooperatives based on structural equation modelling and bootstrapping techniques analysis.FindingsThe results reveal that dynamic capabilities are vital in promoting the growth of financial cooperatives. In addition, networking partially enhances the contribution of dynamic capabilities to the growth of financial cooperatives. Therefore, dynamic capabilities and networking play a key role in promoting the growth of financial cooperative enterprises.Research limitations/implicationsThis was a cross-sectional survey. It did not trace the changes in behavioural and attitudinal aspects of enterprise growth over time. A longitudinal approach is recommended.Practical implicationsIt is imperative that managers of financial cooperatives enhance their coordination, learning and competitive response capabilities through consultation, exchange and sharing of information among staff and other stakeholders, to increase the membership, capital and income volumes, depicting growth of financial cooperatives.Originality/valueThis study provides an insight on the mediating effect of networking on the enterprise growth of financial cooperatives in developing countries founded on networks theoretical framework. Unlike previous studies that modelled direct relationship of enterprise growth.

Anchoring on dynamic auditing capabilities to manage small and medium audit practices in a Covid-19-induced turbulent business environment

“…This supports Bitencourt et al (2020) who document the results of a mediating role of DCs in relationship between alliances/networks, environmental dynamism and firm performance. It also supports Omeke et al (2021) who post the results that show DCs are vital in promoting the growth of financial cooperative enterprises but more so in the presence of networks. This is because alliance and networks confer access to a variety of resources (Døving and Gooderham, 2008).…”

“…, 2020). Omeke et al. (2021) post results that show DCs are vital in promoting the growth of financial cooperative enterprises, especially with the presence of networks.…”

“…Orobia et al (2020) indicate that DCs, through managerial competence, lead to a positive change in the performance of SMEs. Omeke et al (2021) post results that show that DCs are vital in promoting the growth of financial cooperative enterprises. All the sprouting studies continue to call for further research and have ignored the disrupting effects of a turbulence in the operating environment of firms in emerging economies.…”

“…(2020) indicate that DCs, through managerial competence, lead to a positive change in the performance of SMEs. Omeke et al. (2021) post results that show that DCs are vital in promoting the growth of financial cooperative enterprises.…”

Dynamic Capabilities and Firm Performance in Travel Agencies and Tour Operators in Mombasa County, Kenya

“…The DC theory suggests that firms should develop the ability to build, integrate, and reconfigure resources and competencies to achieve competitive advantages (Chien & Tsai, 2021;Ismail, 2022;Omeke, Ngoboka, Nkote, & Kayongo, 2021). The DC theory is concerned with how firms can sustain and enhance their competitive advantage, notably when facing changing environments (Chatterjee, Chaudhuri, & Vrontis, 2021;Mutiso & Karugu, The Strategic Journal of Business & Change Management.…”